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Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three Months Ended June 30, 2016

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Ellomay Capital Currently Indirectly Holds Approximately 9.4% of Dorad Energy Ltd.

TEL-AVIV, Israel, Aug. 24, 2016 /PRNewswire/ -- Ellomay Capital Ltd. (NYSE MKT: ELLO; TASE: ELLO) ("Ellomay" or the "Company"), an emerging operator in the renewable energy and energy infrastructure sector, today reported the publication in Israel of financial statements for the three months ended June 30, 2016 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.

On August 16, 2016, 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 Dori Energy and of Dorad for the quarter ended June 30, 2016 were prepared in accordance with International Financial Reporting Standards. Ellomay will include its share of these results in its financial results for this period, which are currently expected to be published on or about September 18, 2016. 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 the Dorad financial results.

Dorad Financial Highlights

  • Dorad's unaudited revenues for the three months ended June 30, 2016 - approximately NIS 517 million (or approximately USD 134 million, based on the exchange rate on June 30, 2016).
  • Dorad's unaudited operating profit for the three months ended June 30, 2016 - approximately NIS 26 million (or approximately USD 7 million, based on the exchange rate on June 30, 2016).

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, which include the winter and intermediate months of January to June are not indicative of full year results.

A translation of the financial results for Dorad as of and for the year ended December 31, 2015 and as of and for the six and three month periods ended June 30, 2015 and 2016 is included at the end of this press release. Ellomay does not undertake to separately report Dorad's financial results in a separate 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 MKT and with the Tel Aviv Stock Exchange under the trading symbol "ELLO" and whose Series A Debentures are traded on the Tel Aviv Stock Exchange.  Since 2009, Ellomay Capital focuses its business in the energy and infrastructure sectors worldwide. Ellomay (formerly Nur Macroprinters Ltd.) previously was a supplier of wide format and super-wide format digital printing systems and related products worldwide, and sold this business to Hewlett-Packard Company during 2008 for more than $100 million.

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 5.6MW of photovoltaic power plants in Spain and 85% of approximately 2.3MW of photovoltaic power plant in Spain; and
  • Approximately 9.4% indirect interest in Dorad Energy Ltd., which owns and operates one of Israel's largest private power plant with production capacity of approximately 850 MW, representing about 6%-8% of Israel's total current electricity consumption.

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. 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 http://www.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.

Condensed Interim Statement of Financial Position




June 30

June 30

December 31



2016

2015

2015



(Unaudited)

(Unaudited)

(Audited)



NIS thousands

NIS thousands

NIS thousands






Current assets





Cash and cash equivalents


217,216

216,255

51,894

Trade receivables


276,624

218,582

278,982

Other receivables


18,391

8,778

31,994

Pledged deposit


29,486

29,483

29,485

Financial derivatives


-

-

646

Total current assets


541,717

473,098

393,001






Non-current assets





Restricted deposit


305,741

270,067

335,085

Prepaid expenses


46,005

47,921

46,918

Fixed assets


4,283,932

4,489,947

4,386,971

Intangible assets


8,858

7,930

8,391

Total non-current assets


4,644,536

4,815,865

4,777,365






Total assets


5,186,253

5,288,963

5,170,366






Current liabilities





Current maturities of loans from banks


174,352

169,186

170,722

Current maturities of loans from related parties


350,000

130,000

130,000

Trade payables


327,085

391,510

247,129

Other payables


10,038

63,238

16,906

Financial derivatives


430

3,364

-

Total current liabilities


861,905

757,298

564,757






Non-current liabilities





Loans from banks


3,221,059

3,397,036

3,316,740

Loans from related parties


198,272

374,862

396,259

Provision for dismantling and restoration


35,434

28,835

35,170

Deferred tax liabilities


60,475

27,456

60,882

Liabilities for employee benefits, net


160

114

160

Total non-current liabilities


3,515,400

3,828,303

3,809,211






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


162,990

57,404

150,440

Total equity


808,948

703,362

796,398






Total liabilities and equity


5,186,253

5,288,963

5,170,366

 

 

Dorad Energy Ltd.







Condensed Interim Income Statement 




















For the six months ended

For the three months ended

Year ended


June 30

June 30

December 31


2016

2015

2016

2015

2015


(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)


NIS thousands

NIS thousands

NIS thousands

NIS thousands

NIS thousands







Revenues

1,126,458

1,167,328

516,516

488,092

2,356,832







Operating costs of the






Power Plant












Energy costs

284,809

296,178

157,990

138,857

613,689

Electricity purchase and






infrastructure services

543,635

568,586

239,280

233,900

1,000,947

Depreciation and






amortization

105,330

105,204

53,991

52,794

209,953

Other operating costs

65,190

66,825

34,279

30,055

149,808







Total operating costs






 of Power Plant

998,964

1,036,793

485,540

455,606

1,974,397







Profit from operating






 the Power Plant

127,494

130,535

30976

32,486

382,435







General and






administrative expenses

8,745

12,805

4,687

4,814

25,681







Operating profit

118,749

117,730

26,289

27,672

356,754







Financing income

2,198

4,013

1,986

(2,314)

476

Financing expenses

(108,804)

(107,783)

(69,676)

(100,937)

(216,808)







Financing expenses, net

(106,606)

(103,770)

(67,690)

(103,251)

(216,332)







Profit (loss) before taxes on






income

12,143

13,960

(41,401)

(75,579)

140,422







Tax benefit (Taxes on income)

407

(4,181)

10,350

(20,028)

(37,607)







Profit (loss) for the period

12,550

9,779

(31,051)

(55,551)

102,815

 

 

Dorad Energy Ltd.

Condensed Interim Statements of Changes in 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 six months 






ended June 30, 2016






(Unaudited)












Balance as at






January 1, 2016 (Audited)

11

642,199

3,748

150,440

796,398

Profit for the period

-

-

-

12,550

12,550

Balance as at 






June 30, 2016 (Unaudited)

11

642,199

3,748

162,990

808,948







For the six months 






ended June 30, 2015






(Unaudited)












Balance as at






January 1, 2015 (Audited)

11

642,199

3,748

47,625

693,583

Profit for the period

-

-

-

9,779

9,779

Balance as at 






June 30, 2015 (Unaudited)

11

642,199

3,748

57,404

703,362







For the three months 






ended June 30, 2016 






(Unaudited)












Balance as at 






April 1, 2016 (Unaudited)

11

642,199

3,748

194,041

839,999

Loss for the period

-

-

-

(31,051)

(31,051)

Balance as at 






June 30, 2016 (Unaudited)

11

642,199

3,748

162,990

808,948







For the three months 






ended June 30, 2015 






(Unaudited)












Balance as at 

11

642,199

3,748

112,955

758,913

April 1, 2015 (Unaudited)






Loss for the period

-

-

-

(55,551)

(55,551)

Balance as at 






June 30, 2015 (Unaudited)

11

642,199

3,748

57,404

703,362







For the year ended






December 31, 2015 (Audited)












Balance as at






January 1, 2015 (Audited)

11

642,199

3,748

47,625

693,583

Profit for the year

-

-

-

102,815

102,815

Balance as at 






December 31, 2015 (Audited)

11

642,199

3,748

150,440

796,398

 

 

Dorad Energy Ltd.

Condensed Interim Statements of Cash Flows



For the six months ended

For the three months ended

Year ended


June 30

June 30

December 31


2016

2015

2016

2015

2015


(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)


NIS thousands

NIS thousands

NIS thousands

NIS thousands

NIS thousands







Cash flows from






 operating activities:






Profit (loss) for the period

12,550

9,779

(31,051)

(55,551)

102,815

Adjustments:






Depreciation and amortization






and fuel consumption

114,078

105,556

56,446

52,973

237,295

Taxes on income

(407)

4,181

(10,350)

(20,028)

37,607

Financing expenses, net

106,606

103,770

67,690

103,251

216,332


220,277

213,507

113,786

136,196

491,234







Change in trade receivables

2,966

110,093

(22,457)

123,729

49,693

Change in other receivables

13,604

2,340

7,392

10,382

(20,876)

Change in trade payables

80,828

14,994

7,188

(184,612)

(129,385)

Change in other payables

163

20,696

(2,744)

14,333

(6,842)

Change in employee benefits, net

-

8

-

8

55


97,561

148,131

(10,621)

(36,160)

(107,355)

Net cash flows provided






 by operating activities

330,388

371,417

72,114

44,485

486,694







Cash flows used in






 investing activities






Proceeds from (payment for)






settlement of financial derivatives

(1,365)

10,024

(1,043)

2,718

9,609

Payment of pledged deposit

-

38,679

-

-

38,679

Investment in long-term






restricted deposit

(40,391)

(70,000)

(40,391)

-

(135,000)

Release of restricted deposit

70,000

-

70,000

-

-

Investment in prepaid expenses

(90)

-

(90)

-

-

Investment in fixed assets

(15,779)

(402,358)

(10,576)

(21,477)

(447,338)

Investment in intangible assets

(1,755)

(328)

(273)

(100)

(1,767)

Interest received

121

86

105

13

115

Net cash flows provided by (used in)






investing activities

10,741

(423,897)

17,732

(18,846)

(535,702)







Cash flows from






financing activities:






Receipt of long-term






loans from related parties

-

23,208

-

-

23,208

Receipt of long-term






loans from banks

-

318,100

-

-

318,100

Repayment of loans from banks

(73,460)

(44,495)

(73,460)

(44,495)

(105,121)

Interest paid

(102,679)

(99,815)

(102,077)

(99,746)

(206,032)

Net cash flows provided by






(used in) financing activities

(176,139)

196,998

(175,537)

(144,241)

30,155







Net increase (decrease) in cash






and cash equivalents for






the period

164,990

144,518

(85,691)

(118,602)

(18,853)







Effect of exchange rate fluctuations






on cash and cash equivalents

332

(41)

436

285

(1,031)

Cash and cash equivalents at






beginning of period

51,894

71,778

302,471

334,572

71,778

Cash and cash equivalents at end






of period 

217,216

216,255

217,216

216,255

51,894

Contact:
Kalia Weintraub
CFO
Tel: +972-(3)-797-1111
Email: anatb@ellomay.com

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ellomay-capital-reports-publication-of-financial-results-of-dorad-energy-ltd-for-the-three-months-ended-june-30-2016-300317673.html

SOURCE Ellomay Capital Ltd