Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three Months Ended March 31, 2016

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

TEL-AVIV, Israel, June 1, 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 March 31, 2016 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.

On May 31, 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.

As of March 31, 2016, Ellomay indirectly held 49% of Dori Energy and approximately 9.2% of Dorad. During May 2016, Ellomay exercised its option to acquire 1% of the share capital of Dori Energy, increasing its indirect holdings in Dori Energy to 50% and it indirect holdings in Dorad to approximately 9.4%.

The financial results of Dori Energy and of Dorad for the quarter ended March 31, 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 June 9, 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 quarter ended March 31, 2016 - approximately NIS 609.9 million (or approximately USD 162 million, based on the exchange rate on March 31, 2016).
  • Dorad's unaudited operating profit for the quarter ended March 31, 2016 - approximately NIS 92.5 million (or approximately USD 24.5 million, based on the exchange rate on March 31, 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 months of January and February and part of the intermediate months (March), 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 three month periods ended March 31, 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 Dori Group, 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.

 

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

 

Dorad Energy Ltd.

Condensed Interim Statement of Financial Position




March 31

March 31

December 31



2016

2015

2015



(Unaudited)

(Unaudited)

(Audited)



NIS
thousands

NIS
thousands

NIS
thousands

Current assets





Cash and cash equivalents


302,470

334,572

51,894

Trade receivables


253,559

342,074

278,982

Other receivables


25,784

19,160

31,994

Pledged deposit


29,485

29,483

29,485

Financial derivatives


-

6,894

646

Total current assets


611,298

732,183

393,001






Non-current assets





Restricted deposit


334,525

270,062

335,085

Prepaid expenses


46,416

48,423

46,918

Fixed assets


4,335,607

4,537,446

4,386,971

Intangible assets


9,233

8,318

8,391

Total non-current assets


4,725,781

4,864,249

4,777,365






Total assets


5,337,079

5,596,432

5,170,366






Current liabilities





Current maturities of loans from banks


215,188

176,235

170,722

Current maturities of loans from related parties


130,000

-

130,000

Trade payables


319,910

576,120

247,129

Other payables


19,737

66,695

16,906

Financial derivatives


4,798

-

-

Total current liabilities


689,633

819,050

564,757






Non-current liabilities





Loans from banks


3,297,603

3,453,636

3,316,740

Loans from related parties


403,557

488,572

396,259

Provision for dismantling and restoration


35,301

28,671

35,170

Deferred tax liabilities


70,826

47,485

60,882

Liabilities for employee benefits, net


160

105

160

Total non-current liabilities


3,807,447

4,018,469

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


194,041

112,955

150,440

Total equity


839,999

758,913

796,398






Total liabilities and equity


5,337,079

5,596,432

5,170,366

 

 

 

Dorad Energy Ltd.


Condensed Interim Statements of Earnings





For the three months ended

Year ended



March 31

December 31



2016

2015

2015



(Unaudited)

(Unaudited)

(Audited)



NIS
thousands

NIS
thousands

NIS
thousands


Revenues

609,942

679,236

2,356,832





Operating costs of the Power Plant








Energy costs

126,819

157,321

613,689

Electricity purchase and infrastructure services

304,355

334,686

1,000,947

Depreciation and amortization

51,339

52,410

209,953

Other operating costs

30,911

36,770

149,808





Total operating costs of the Power Plant

513,424

581,187

1,974,397





Profit from operating the Power Plant

96,518

98,049

382,435





General and administrative expenses

4,058

7,991

25,681





Operating profit

92,460

90,058

356,754





Financing income

212

6,327

476

Financing expenses

39,127

6,846

216,808





Financing expenses, net

(38,915)

(519)

(216,332)





Profit before taxes on income

53,545

89,539

140,422





Taxes on income

9,944

24,209

37,607





Net profit for the period

43,601

65,330

102,815

 

 

Dorad Energy Ltd.

Condensed Interim Statements of Changes in Shareholders' Equity





Capital

reserve






for activities




Share

Share

with

Retained

Total


capital

premium

shareholders

earnings

Equity


NIS
thousands

NIS
thousands

NIS
thousands

NIS
thousands

NIS
thousands

For the three months 






ended March 31, 2016






(Unaudited)












Balance as at






January 1, 2016 (Audited)

11

642,199

3,748

150,440

796,398







Net profit for the period

-

-

-

43,601

43,601







Balance as at






March 31, 2016






(Unaudited)

11

642,199

3,748

194,041

839,999







For the three months 






ended March 31, 2015






(Unaudited)












Balance as at






January 1, 2015 (Audited)

11

642,199

3,748

47,625

693,583







Net profit for the period

-

-

-

65,330

65,330







Balance as at






March 31, 2015






(Unaudited)

11

642,199

3,748

112,955

758,913







For the year ended






December 31, 2015






(Audited)












Balance as at






January 1, 2015 (Audited)

11

642,199

3,748

47,625

693,583







Net profit for the period

-

-

-

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 three months ended

Year ended


March 31

December 31


2016

2015

2015


(Unaudited)

(Unaudited)

(Audited)


NIS
thousands

NIS
thousands

NIS
thousands

Cash flows from operating activities:




Profit for the period

43,601

65,330

102,815

Adjustments:




Depreciation and amortization and fuel consumption

57,632

52,583

237,295

Taxes on income

9,944

24,210

37,607

Financing expenses, net

38,915

519

216,332


106,491

77,312

491,234





Change in trade receivables

25,423

(13,636)

49,693

Change in other receivables

6,211

(8,042)

(20,876)

Change in trade payables

73,640

199,605

(129,385)

Change in other payables

2,907

6,363

(6,842)

Change in employee benefits, net

-

-

55


108,181

184,290

(107,355)





Net cash flows provided by operating activities

258,273

326,932

486,694





Cash flows used in investing activities




Proceeds from (payment for) settlement of financial derivatives

(322)

7,306

9,609

Payment of pledged deposit

-

38,679

38,679

Investment in fixed assets

(5,203)

(380,881)

(447,338)

Investment in intangible assets

(1,481)

(228)

(1,767)

Investment in long-term restricted deposit

-

(70,000)

(135,000)

Interest received

15

73

115





Net cash flows used in investing activities

(6,991)

(405,051)

(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

-

-

(105,121)

Interest paid

(602)

(69)

(206,032)





Net cash flows provided by (used in) financing activities

(602)

341,239

30,155





Net increase (decrease) in cash and cash equivalents for the period

250,680

263,120

(18,853)





Effect of exchange rate fluctuations on cash and cash




 equivalents

(104)

(326)

(1,031)





Cash and cash equivalents at beginning of period

51,894

71,778

71,778





Cash and cash equivalents at end of period

302,470

334,572

51,894

 

 

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SOURCE Ellomay Capital Ltd