Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three and Nine Months Ended September 30, 2018

TEL-AVIV, Israel, Dec. 3, 2018 /PRNewswire/ — Ellomay Capital Ltd. (NYSE American; TASE:  ELLO) (“Ellomay” or the “Company”), a renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel, today reported the publication in Israel of financial statements for the three and nine months ended September 30, 2018 of Dorad Energy Ltd. (“Dorad“), in which Ellomay currently indirectly holds approximately 9.4%.

On November 29, 2018, Amos Luzon Entrepreneurship and Energy Group Ltd. (f/k/a U. Dori Group Ltd.) (the “Luzon Group“), an Israeli public company that currently holds 50% of U. Dori Energy Infrastructures Ltd. (“Dori Energy“), which, in turn, holds 18.75% of Dorad, published its quarterly report in Israel based on the requirements of the Israeli Securities Law, 1968. Based on applicable regulatory requirements, the quarterly report of the Luzon Group includes the financial statements of Dorad for the same period.

The financial results of Dorad for the quarter ended September 30, 2018 were prepared in accordance with International Financial Reporting Standards. Ellomay will include its indirect share of these results (through its holdings in Dori Energy) in its financial results for this period, which are currently expected to be published on or about December 27, 2018.  In an effort to provide Ellomay’s shareholders with access to Dorad’s financial results (which were published in Hebrew), Ellomay hereby provides a convenience translation of Dorad’s financial results.

Dorad Financial Highlights

  • Dorad’s unaudited revenues for the three months ended September 30, 2018 – approximately NIS 730.9 million.
  • Dorad’s unaudited operating profit for the three months ended June 30, 2018 – approximately NIS 161.2 million.

Based on the information provided by Dorad, the demand for electricity by Dorad’s customers is seasonal and is affected by, inter alia, the climate prevailing in that season. The months of the year are split into three seasons as follows: the summer season – the months of July and August; the winter season – the months of December, January and February; and intermediate seasons – (spring and autumn), the months from March to June and from September to November. There is a higher hourly demand for electricity during the winter and summer seasons, and the average electricity consumption per hour is higher in these seasons than in the intermediate seasons and is even characterized by peak demands due to extreme climate conditions of heat or cold. In addition, Dorad’s revenues are affected by the change in load and time tariffs – TAOZ (an electricity tariff that varies across seasons and across the day in accordance with demand hour clusters), as, on average, TAOZ tariffs are higher in the summer season than in the intermediate and winter seasons. Therefore, the results presented for the quarter ended September 30, 2018, which include the summer months of July and August and the intermediate month of September, are not indicative of full year results.

A translation of the financial results for Dorad as of and for the year ended December 31, 2017 and as of and for the three and nine month periods ended September 30, 2017 and 2018 is included at the end of this press release. Ellomay does not undertake to separately report Dorad’s financial results in a press release in the future. Neither Ellomay nor its independent public accountants have reviewed or consulted with the Amos Luzon Entrepreneurship and Energy Group Ltd., Dori Energy or Dorad with respect to the financial results included in this press release.

About Ellomay Capital Ltd.

Ellomay is an Israeli based company whose shares are registered with the NYSE American and with the Tel Aviv Stock Exchange under the trading symbol “ELLO”. Since 2009, Ellomay Capital focuses its business in the renewable energy and power sectors in Europe and Israel.

To date, Ellomay has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy and Spain, including:

  • Approximately 22.6MW of photovoltaic power plants in Italy, approximately 7.9MW of photovoltaic power plants in Spain and a photovoltaic power plant of approximately 9 MW in Israel;
  • 9.375% indirect interest in Dorad Energy Ltd., which owns and operates one of Israel’s largest private power plants with production capacity of approximately 850 MW, representing about 6%-8% of Israel’s total current electricity consumption;
  • 75% of Chashgal Elyon Ltd., Agira Sheuva Electra, L.P. and Ellomay Pumped Storage (2014) Ltd., all of which are involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel;
  • 51% of Groen Gas Goor B.V. and of Groen Gas Oude-Tonge B.V., project companies operating or developing anaerobic digestion plants with a green gas production capacity of approximately 375 Nm3/h, in Goor, the Netherlands and 475 Nm3/h, in Oude Tonge, the Netherlands, respectively.

Ellomay Capital is controlled by Mr. Shlomo Nehama, Mr. Hemi Raphael and Mr. Ran Fridrich. Mr. Nehama is one of Israel’s prominent businessmen and the former Chairman of Israel’s leading bank, Bank Hapohalim, and Messrs. Raphael and Fridrich both have vast experience in financial and industrial businesses. These controlling shareholders, along with Ellomay’s dedicated professional management, accumulated extensive experience in recognizing suitable business opportunities worldwide. Ellomay believes the expertise of Ellomay’s controlling shareholders and management enables the Company to access the capital markets, as well as assemble global institutional investors and other potential partners. As a result, we believe Ellomay is capable of considering significant and complex transactions, beyond its immediate financial resources.

For more information about Ellomay, visit https://ellomay.com.

Information Relating to Forward-Looking Statements  

This press release contains forward-looking statements that involve substantial risks and uncertainties, including statements that are based on the current expectations and assumptions of the Company’s management. All statements, other than statements of historical facts, included in this press release regarding the Company’s plans and objectives, expectations and assumptions of management are forward-looking statements.  The use of certain words, including the words “estimate,” “project,” “intend,” “expect,” “believe” and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  The Company may not actually achieve the plans, intentions or expectations disclosed in the forward-looking statements and you should not place undue reliance on the Company’s forward-looking statements. Various important factors could cause actual results or events to differ materially from those that may be expressed or implied by our forward-looking statements, such as regulatory changes, changes in demand, technical and other disruptions in the operations of the power plant operated by Dorad and changes in the prices of natural gas. These and other risks and uncertainties associated with the Company’s business are described in greater detail in the filings the Company makes from time to time with Securities and Exchange Commission, including its Annual Report on Form 20-F. The forward-looking statements are made as of this date and the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Dorad Energy Ltd.







Interim Condensed Statements of Financial Position

















September 30
September 30
December 31


2018
2017
2017


(Unaudited)
(Unaudited)
(Audited)


NIS thousands
NIS thousands
NIS thousands
Current assets





Cash and cash equivalents
284,094
308,106
184,182
Trade receivables
254,045
296,623
330,397
Other receivables
38,579
82,018
83,289
Pledged deposit
3,508
–
–
Total current assets
580,226
686,747
597,868







Non-current assets





Restricted deposit
420,808
395,661
405,306
Prepaid expenses
42,233
44,350
43,821
Fixed assets
3,927,348
4,058,427
4,009,008
Intangible assets
3,961
6,683
6,097
Total non-current assets
4,394,350
4,505,121
4,464,232
Total assets
4,974,576
5,191,868
5,062,100







Current liabilities





Current maturities of loans from banks
255,941
252,000
203,819
Current maturities of loans from related parties
110,000
70,000
140,464
Trade payables
259,782
413,988
415,798
Other payables
19,046
4,628
5,649
Financial derivatives
–
3,372
1,191
Total current liabilities
644,769
743,988
766,921







Non-current liabilities





Loans from banks
3,108,089
3,274,223
3,187,873
Loans from related parties
15,258
120,404
54,764
Provision for dismantling and restoration
40,288
36,103
36,239
Deferred tax liabilities
123,774
89,473
89,298
Liabilities for employee benefits, net
160
160
160
Total non-current liabilities
3,287,569
3,520,363
3,368,334







Equity





Share capital
11
11
11
Share premium
642,199
642,199
642,199
Capital reserve from activities with shareholders
3,748
3,748
3,748
Retained earnings
396,280
281,559
280,887
Total equity
1,042,238
927,517
926,845
Total liabilities and equity
4,974,576
5,191,868
5,062,100




Dorad Energy Ltd.










Interim Condensed Statements of Profit and Loss





























For the nine months ended
For the three months ended
Year ended

September 30
September 30
December 31

2018
2017
2018
2017
2017

(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)

NIS thousands
NIS thousands
NIS thousands
NIS thousands
NIS thousands










Revenues1,990,177
1,927,460
730,891
716,171
2,523,263










Operating costs of the








 Power Plant


















Energy costs517,660
480,876
186,913
189,081
616,221
Electricity purchase and








 infrastructure services880,927
914,350
288,898
310,939
1,212,431
Depreciation and








 amortization163,977
150,147
56,572
52,513
208,705
Other operating costs102,333
81,275
37,321
23,360
122,345










Total operating costs








 of Power Plant1,664,897
1,626,648
569,704
575,893
2,159,702










Profit from operating








 the Power Plant325,280
300,812
161,187
140,278
363,561










General and








 administrative expenses15,401
13,497
4,873
4,921
18,712










Operating profit309,879
287,315
156,314
135,357
344,849










Financing income16,540
2,427
4,684
617
3,195
Financing expenses176,550
185,974
55,670
35,230
245,122










Financing expenses, net160,010
183,547
50,986
34,613
241,927










Profit before








 taxes on income149,869
103,768
105,328
100,744
102,922










  Taxes on income34,476
23,855
24,223
23,168
23,681










Profit for the period115,393
79,913
81,105
77,576
79,241
Dorad Energy Ltd.










Interim Condensed Statements of Changes in Shareholders’ Equity

































Capital








reserve for




Share
Share
activities with
Retained


capital
premium
shareholders
earnings
Total Equity

NIS thousands
NIS thousands
NIS thousands
NIS thousands
NIS thousands










For the nine months








ended September 30, 2018








 (Unaudited)


















Balance as at








January 1, 2018 (Audited)11
642,199
3,748
280,887
926,845
Profit for the period–
–
–
115,393
115,393










Balance as at








September 30, 2018 (Unaudited)11
642,199
3,748
396,280
1,042,238










For the nine months








ended September 30, 2017








(Unaudited)


















Balance as at








January 1, 2017 (Audited)11
642,199
3,748
201,646
847,604
Profit for the period–
–
–
79,913
79,913










Balance as at








September 30, 2017 (Unaudited)11
642,199
3,748
281,559
927,517










For the three months








 ended September 30, 2018








 (Unaudited)


















Balance as at








 July 1, 2018 (Unaudited)11
642,199
3,748
315,175
961,133
Profit for the period–
–
–
81,105
81,105










Balance as at








 September 30, 2018 (Unaudited)11
642,199
3,748
396,280
1,042,238










For the three months








 ended September 30, 2017








 (Unaudited)


















Balance as at








 July 1, 2017 (Unaudited)11
642,199
3,748
203,983
849,941
Profit for the period–
–
–
77,576
77,576










Balance as at








 September 30, 2017 (Unaudited)11
642,199
3,748
281,559
927,517










For the year ended








 December 31, 2017 (Audited)


















Balance as at








 January 1, 2017 (Audited)11
642,199
3,748
201,646
847,604
Profit for the year–
–
–
79,241
79,241










Balance as at








 December 31, 2017 (Audited)11
642,199
3,748
280,887
926,845
Dorad Energy Ltd.










Interim Condensed Statements of Cash Flows





























For the nine months ended
For the three months ended
Year ended

September 30
September 30
December 31

2018
2017
2018
2017
2017

(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)

NIS thousands
NIS thousands
NIS thousands
NIS thousands
NIS thousands










Cash flows from








 operating activities:








Profit for the period115,393
79,913
81,105
77,576
79,241
Adjustments:








Depreciation and amortization








 and fuel consumption167,960
213,751
56,917
70,845
286,542
Taxes on income34,476
23,855
24,223
23,168
23,681
Financing expenses, net160,010
183,547
50,986
34,613
241,927

362,446
421,153
132,126
128,626
552,150










Change in trade receivables76,488
(1,692)
(6,539)
(30,794)
(35,465)
Change in other receivables23,955
(61,955)
14,299
(1,600)
(84,857)
Change in trade payables(161,484)
107,940
(11,664)
71,234
123,045
Change in other payables16,985
(1,078)
17,719
1,308
(2,669)

(44,056)
43,215
13,815
40,148
54
Net cash flows provided








 by operating activities433,783
544,281
227,046
246,350
631,445










Cash flows used in








 investing activities








Proceeds (payment) for settlement of








 financial derivatives4,997
(7,018)
2,640
(2,385)
(10,596)
Insurance proceeds in respect of damage to fixed asset20,619
15,444
1,181
15,444
38,742
Investment in long-term








 restricted deposit(7,158)
(21,000)
–
–
(34,000)
Release of long-term restricted








 deposit–
25,790
–
–
25,790
Investment in fixed assets(82,341)
(87,136)
(21,291)
(33,350)
(121,361)
Investment in intangible assets(141)
(258)
(18)
–
(413)
Interest received2,461
1,847
978
617
1,268
Net cash flows used in








investing activities(61,563)
(72,331)
(16,510)
(19,674)
(100,570)










Cash flows used in








 financing activities:








Repayment of loans from








 related parties(62,802)
(39,628)
–
–
(39,628)
Repayment of loans from banks(91,345)
(85,112)
–
–
(161,668)
Interest paid(119,803)
(121,093)
(356)
(228)
(227,530)
Net cash flows used in








 financing activities(273,950)
(245,833)
(356)
(228)
(428,826)










Net increase in 








cash and cash equivalents for








 the period98,270
226,117
210,180
226,448
102,049










Effect of exchange rate fluctuations








 on cash and cash equivalents1,642
1,022
88
345
1,166
Cash and cash equivalents at








 beginning of period184,182
80,967
73,826
81,313
80,967
Cash and cash equivalents at








 end of period284,094
308,106
284,094
308,106
184,182

Contact:

Kalia Weintraub
CFO
Tel: +972 (3) 797-1111
Email: [email protected]

Cision

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SOURCE Ellomay Capital Ltd

Released December 3, 2018