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Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three and Six Months Ended June 30, 2017

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TEL-AVIV, Israel, August 31, 2017 /PRNewswire/ -- Ellomay Capital Ltd. (NYSE American; 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 and six months ended June 30, 2017 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.

On August 31, 2017, 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 June 30, 2017 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 September 17, 2017.  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 June 30, 2017 - approximately NIS 536.6 million (or approximately USD 153.5 million, based on the exchange rate on June 30, 2017).
  • Dorad's unaudited operating profit for the three months ended June 30, 2017 - approximately NIS 46.3 million (or approximately USD 13.3 million, based on the exchange rate on June 30, 2017).

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 June 30, 2017, which include the intermediate months of April, May and 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, 2016 and as of and for the three and six month periods ended June 30, 2016 and 2017 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 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 and approximately 7.9MW of photovoltaic power plants in Spain;
  • 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 340 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 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 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.

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


 

 

 

Dorad Energy Ltd.

Interim Condensed Statements of Financial Position













June 30

June 30

December 31



2017

2016

2016



(Unaudited)

(Unaudited)

(Audited)



NIS thousands

NIS thousands

NIS thousands

Assets





Cash and cash equivalents


81,313

217,216

80,967

Trade receivables


265,829

276,624

294,351

Other receivables


97,529

18,391

37,174

Pledged deposits


-

29,486

-

Total current assets


444,671

541,717

412,492






Restricted deposits


393,657

305,741

411,574

Prepaid expenses


44,880

46,005

45,938

Fixed assets


4,099,540

4,283,932

4,170,151

Intangible assets


7,420

8,858

8,551

Total non-current assets


4,545,497

4,644,536

4,636,214






Total assets


4,990,168

5,186,253

5,048,706






Liabilities





Current maturities of loans from banks


203,415

174,352

197,389

Current maturities of loans from related parties


70,000

350,000

80,000

Trade payables


329,456

327,085

293,613

Other payables


22,822

10,038

9,152

Financial derivatives


7,298

430

-

Total current liabilities


632,991

861,905

580,154






Loans from banks


3,287,991

3,221,059

3,367,832

Loans from related parties


116,812

198,272

151,638

Provision for dismantling and restoration


35,968

35,434

35,700

Deferred tax liabilities, net


66,305

60,475

65,618

Liabilities for employee benefits, net


160

160

160

Total non-current liabilities


3,507,236

3,515,400

3,620,948






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


203,983

162,990

201,646

Total equity


849,941

808,948

847,604






Total liabilities and equity


4,990,168

5,186,253

5,048,706

 

 

 


Dorad Energy Ltd.

Interim Condensed Statements of Profit and Loss






For the six months ended

For the three months ended

Year ended


June 30

June 30

December 31


2017

2016

2017

2016

2016


(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)


NIS thousands

NIS thousands

NIS thousands

NIS thousands

NIS thousands

Revenues

1,211,289

1,126,458

536,602

516,516

2,299,565







Operating costs of the






 Power Plant












Energy costs

291,795

284,809

145,767

157,990

550,401

Electricity purchase and






 infrastructure services

603,411

543,635

273,001

239,280

1,104,826

Depreciation and






 amortization

97,634

105,330

46,189

53,991

209,057

Other operating costs

57,915

65,190

25,296

34,279

141,132







Total operating costs






 of Power Plant

1,050,755

998,964

490,253

485,540

2,005,416







Profit from operating






 the Power Plant

160,534

127,494

46,349

30,976

294,149







General and






 administrative expenses

8,576

8,745

4,505

4,687

19,178







Operating profit

151,958

118,749

41,844

26,289

274,971







Financing income

1,810

2,198

1,312

1,986

7,025

Financing expenses

(150,744)

(108,804)

(89,829)

(69,676)

(226,054)







Financing expenses, net

(148,934)

(106,606)

(88,517)

(67,690)

(219,029)







Profit (loss) before taxes






on income

3,024

12,143

(46,673)

(41,401)

55,942







Tax benefit (Taxes on






 income)

(687)

407

10,744

10,350

(4,736)







Profit (loss) for the period

2,337

12,550

(35,929)

(31,051)

51,206

 

 

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 six months






 ended June 30, 2017






 (Unaudited)












Balance as at






 January 1, 2017 (Audited)

11

642,199

3,748

201,646

847,604







Profit for the period

-

-

-

2,337

2,337







Balance as at






 June 30, 2017 (Unaudited)

11

642,199

3,748

203,983

849,941







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 three months







 ended June 30, 2017







 (Unaudited)














Balance as at







 April 1, 2017 (Unaudited)

11

642,199

3,748

239,912

885,870









Loss for the period

-

-

-

(35,929)

(35,929)









Balance as at







 June 30, 2017 (Unaudited)

11

642,199

3,748

203,983

849,941









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 year ended







 December 31, 2016 (Audited)














Balance as at







 January 1, 2016 (Audited)

11

642,199

3,748

150,440

796,398









Profit for the year

-

-

-

51,206

51,206









Balance as at







 December 31, 2016 (Audited)

11

642,199

3,748

201,646

847,604


 

 

Dorad Energy Ltd.





Interim Condensed Statements of Cash Flows






For the six months ended

For the three months ended

Year ended


June 30

June 30

December 31


2017

2016

2017

2016

2016


(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

2,337

12,550

(35,929)

(31,051)

51,206

Adjustments:






Depreciation and amortization






 and fuel consumption

142,906

114,078

72,816

56,446

238,484

Taxes on income (tax  benefit)

687

(407)

(10,744)

(10,350)

4,736

Financing expenses, net

148,934

106,606

88,517

67,690

219,029


292,527

220,277

150,589

113,786

462,249







Change in trade receivables

29,102

2,966

8,581

(22,457)

(14,761)

Change in other receivables

(60,355)

13,604

(41,999)

7,392

(5,179)

Change in trade payables

36,707

80,828

42,984

7,188

48,807

Change in other payables

(2,387)

163

(19,779)

(2,744)

677

Change in employee benefits, net

-

-

-

-

-


3,067

97,561

(10,213)

(10,621)

29,544

Net cash flows provided






 by operating activities

297,931

330,388

104,447

72,114

542,999







Cash flows from






 investing activities






Payment for settlement of






 financial derivatives

(4,633)

(1,365)

(2,784)

(1,043)

(2,017)

Release of pledged deposit

-

-

-

-

29,486

Investment in long-term






 restricted deposits

(21,000)

(40,391)

-

(40,391)

(143,891)

Release of long-term restricted






 deposits

25,790

70,000

12,572

70,000

70,000

Long-term prepaid expenses

-

(90)

-

(90)

(1,056)

Investment in fixed assets

(53,786)

(15,779)

(21,804)

(10,576)

(25,415)

Investment in intangible assets

(258)

(1,755)

(227)

(273)

(2,804)

Interest received

1,230

121

732

105

624

Net cash flows provided by (used






 in) investing activities

(52,657)

10,741

(11,511)

17,732

(75,073)







Cash flows from






 financing activities:






Receipt of long-term






 loans from related parties

-

-

-

-

16,689

Receipt of long-term






 loans from banks

-

-

-

-

242,772

Repayment of long-term loans






 from related parties

(39,628)

-

-

-

(147,219)

Repayment of loans from banks

(85,112)

(73,460)

(85,112)

(73,460)

(143,896)

Interest paid

(120,865)

(102,679)

(105,183)

(102,077)

(408,071)

Net cash flows used in






 financing activities

(245,605)

(176,139 )

(190,295)

(175,537)

(439,725)







Net increase (decrease) in cash






 and cash equivalents

(331)

164,990

(97,359)

(85,691)

28,201







Effect of exchange rate fluctuations






 on cash and cash equivalents

677

332

523

436

872

Cash and cash equivalents at






 beginning of period

80,967

51,894

178,149

302,471

51,894

Cash and cash equivalents at end






 of period

81,313

217,216

81,313

217,216

80,967

 

 

 

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