Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three Months Ended March 31, 2019

Published

TEL AVIV, Israel, May 30, 2019 /PRNewswire/ -- Ellomay Capital Ltd. (NYSE American: ELLO) (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 months ended March 31, 2019 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.

On May 29, 2019, 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 March 31, 2019 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 June 26, 2019.  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 March 31, 2019 - approximately NIS 713.1 million.
  • Dorad's unaudited operating profit for the three months ended March 31, 2019 - approximately NIS 115.3 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 March 31, 2019, which include the winter months of January and February and the intermediate month of 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, 2018 and as of and for the three month periods ended March 31, 2018 and 2019 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.

On April 8, 2019, Zorlu Enerji Elektrik Uretim A.S. ("Zorlu"), which owns 25% of Dorad, filed an opening motion with the District Court in Tel Aviv against Dorad and the directors serving on Dorad's board on behalf of Dori Energy and Eilat Ashkelon Infrastructure Services Ltd. ("EAIS"), which holds 37.5% of Dorad. In the opening motion, Zorlu asks the court to instruct Dorad to convene a shareholders meeting and to include a discussion and a vote on the planning and construction of an additional power plant adjacent to the existing power plant (the "Dorad 2 Project") on the agenda of this meeting. Zorlu claims that while the articles of association of Dorad provides that the planning and construction of an additional power plant requires a unanimous consent of the Dorad shareholders, and while Zorlu and Edelcom Ltd. ("Edelcom"), which holds 18.75% of Dorad, are opposed to this project, including due to the current disagreements among Dorad's shareholders, Dorad continued taking actions to advance the project, which include spending substantial amounts our of Dorad's funds. Zorlu further claims that the representatives of Dori Energy and EAIS on the Dorad board have acted to prevent the convening of a shareholders meeting as requested by Zorlu. On April 16, 2019, Edelcom submitted a request to join the opening motion as an additional respondent as Edelcom claims that it is another shareholder in Dorad that opposes the advancement of the project at this stage. In addition, Edelcom joined Dori Energy and EAIS as additional respondents to its request, claiming that these entities are required to be part of the proceeding in order to reach a complete and efficient resolution. Dori Energy is required to submit its response to Edelcom's request by June 1, 2019. To the Company's knowledge, the Dorad 2 Project is currently under internal examination by Dorad and there can be no assurance as to if, when and under what terms it will be advanced or promoted by Dorad.

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 850MW, 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 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;
  • 51% of Talasol, which is involved in a project to construct a photovoltaic plant with a peak capacity of 300MW in the municipality of Talaván, Cáceres, Spain.

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: HilaI@ellomay.com


 

Dorad Energy Ltd.

Interim Condensed Statements of Income

Mar-31 Mar-31 Dec-31
2019  *2018  *2018
(Unaudited) (Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands
Current assets
Cash and cash equivalents 286,798 200,829 117,220
Trade receivables 242,852 285,670 297,997
Other receivables 52,719 57,904 56,417
Financial derivatives - 2,189 387
Total current assets 582,369 546,592 472,021
Non-current assets
Restricted deposit 427,671 412,752 431,096
Prepaid expenses 41,175 43,292 41,704
Fixed assets 3,819,496 3,999,905 3,869,800
Intangible assets 2,463 5,465 3,265
Right of use assets 54,063 - -
Total non-current assets 4,344,868 4,461,414 4,345,865
Total assets 4,927,237 5,008,006 4,817,886
Current liabilities
Current maturities of loans from banks  257,502 249,287 217,254
Current maturities of loans from related parties 18,175 110,000 17,805
Current maturities of lease liabilities 4,294 - -
Trade payables 286,459 305,504 340,829
Other payables 8,141 17,187 5,966
Financial derivatives 111 - -
Total current liabilities 574,682 681,978 581,854
Non-current liabilities
Loans from banks 3,007,784 3,180,408 3,016,582
Loans from related parties - 7,764 -
Long-term lease liabilities 46,974 - -
Provision for dismantling and restoration 35,647 40,070 35,497
Deferred tax liabilities 140,615 108,045 122,803
Liabilities for employee benefits, net 160 160 160
Total non-current liabilities 3,231,180 3,336,447 3,175,042
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 475,417 343,623 415,032
Total equity 1,121,375 989,581 1,060,990
Total liabilities and equity 4,927,237 5,008,006 4,817,886

* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.

 

 

Dorad Energy Ltd.

Interim Condensed Statements of Income  

Mar-31 Mar-31 Dec-31 For the three months ended Year ended
2019  *2018  *2018 Mar-31 Dec-31
(Unaudited) (Unaudited) (Audited) 2019  *2018  *2018
NIS thousands NIS thousands NIS thousands (Unaudited) (Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands
Current assets
Cash and cash equivalents 286,798 200,829 117,220 Revenues 713,078 684,852 2,628,607
Trade receivables 242,852 285,670 297,997 Operating costs of the Power Plant
Other receivables 52,719 57,904 56,417 Energy costs 159,826 146,073 687,431
Financial derivatives - 2,189 387 Electricity purchase and infrastructure services 342,885 326,627 1,194,948
Total current assets 582,369 546,592 472,021 Depreciation and amortization 49,300 52,169 217,795
Other operating costs 40,789 37,294 136,705
Non-current assets Total operating cost of Power Plant 592,800 562,163 2,236,879
Restricted deposit 427,671 412,752 431,096
Prepaid expenses 41,175 43,292 41,704 Profit from operating the Power Plant 120,278 122,689 391,728
Fixed assets 3,819,496 3,999,905 3,869,800 General and administrative expenses 4,972 5,278 20,740
Intangible assets 2,463 5,465 3,265
Right of use assets 54,063 - - Operating profit 115,306 117,411 370,988
Total non-current assets 4,344,868 4,461,414 4,345,865 Financing income 1,031 4,231 24,650
Financing expenses 38,139 40,159 227,988
Total assets 4,927,237 5,008,006 4,817,886 Financing expenses, net 37,108 35,928 203,338
Profit before taxes on income 78,198 81,483 167,650
Current liabilities Taxes on income 17,813 18,747 33,505
Current maturities of loans from banks  257,502 249,287 217,254 Profit for the period 60,385 62,736 134,145
Current maturities of loans from related parties 18,175 110,000 17,805
Current maturities of lease liabilities 4,294 - -
Trade payables 286,459 305,504 340,829
Other payables 8,141 17,187 5,966
Financial derivatives 111 - -
Total current liabilities 574,682 681,978 581,854
Non-current liabilities
Loans from banks 3,007,784 3,180,408 3,016,582
Loans from related parties - 7,764 -
Long-term lease liabilities 46,974 - -
Provision for dismantling and restoration 35,647 40,070 35,497
Deferred tax liabilities 140,615 108,045 122,803
Liabilities for employee benefits, net 160 160 160
Total non-current liabilities 3,231,180 3,336,447 3,175,042
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 475,417 343,623 415,032
Total equity 1,121,375 989,581 1,060,990
Total liabilities and equity 4,927,237 5,008,006 4,817,886

* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.

 


Dorad Energy Ltd.

Interim Condensed Statements of Changes in Shareholders' Equity

Mar-31 Mar-31 Dec-31 For the three months ended Year ended Capital reserve
2019  *2018  *2018 Mar-31 Dec-31 for activities
(Unaudited) (Unaudited) (Audited) 2019  *2018  *2018 Share Share with Retained
NIS thousands NIS thousands NIS thousands (Unaudited) (Unaudited) (Audited) capital premium shareholders earnings Total Equity
NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands
Current assets
Cash and cash equivalents 286,798 200,829 117,220 Revenues 713,078 684,852 2,628,607 For the three months 
Trade receivables 242,852 285,670 297,997 Operating costs of the Power Plant ended March 31, 2019
Other receivables 52,719 57,904 56,417 Energy costs 159,826 146,073 687,431 (Unaudited)
Financial derivatives - 2,189 387 Electricity purchase and infrastructure services 342,885 326,627 1,194,948 Balance as at
Total current assets 582,369 546,592 472,021 Depreciation and amortization 49,300 52,169 217,795 January 1, 2019 (Audited) 11 642,199 3,748 415,032 1,060,990
Other operating costs 40,789 37,294 136,705 Profit for the period - - - 60,385 60,385
Non-current assets Total operating cost of Power Plant 592,800 562,163 2,236,879 Balance as at
Restricted deposit 427,671 412,752 431,096 March 31, 2019
Prepaid expenses 41,175 43,292 41,704 Profit from operating the Power Plant 120,278 122,689 391,728 (Unaudited) 11 642,199 3,748 475,417 1,121,375
Fixed assets 3,819,496 3,999,905 3,869,800 General and administrative expenses 4,972 5,278 20,740
Intangible assets 2,463 5,465 3,265 For the three months 
Right of use assets 54,063 - - Operating profit 115,306 117,411 370,988 ended March 31, 2018
Total non-current assets 4,344,868 4,461,414 4,345,865 Financing income 1,031 4,231 24,650 (Unaudited)
Financing expenses 38,139 40,159 227,988 Balance as at
Total assets 4,927,237 5,008,006 4,817,886 Financing expenses, net 37,108 35,928 203,338 January 1, 2018 (Audited) 11 642,199 3,748 280,887 926,845
Profit before taxes on income 78,198 81,483 167,650 Profit for the period - - - 62,736 62,736
Current liabilities Taxes on income 17,813 18,747 33,505 Balance as at
Current maturities of loans from banks  257,502 249,287 217,254 Profit for the period 60,385 62,736 134,145 March 31, 2018*
Current maturities of loans from related parties 18,175 110,000 17,805 (Unaudited) 11 642,199 3,748 343,623 989,581
Current maturities of lease liabilities 4,294 - -
Trade payables 286,459 305,504 340,829 For the year ended
Other payables 8,141 17,187 5,966 December 31, 2018
Financial derivatives 111 - - (Audited)
Total current liabilities 574,682 681,978 581,854 Balance as at
January 1, 2018 (Audited) 11 642,199 3,748 280,887 926,845
Non-current liabilities Profit for the year 134,145 134,145
Loans from banks 3,007,784 3,180,408 3,016,582 Balance as at 
Loans from related parties - 7,764 - December 31, 2018 *
Long-term lease liabilities 46,974 - - (Audited) 11 642,199 3,748 415,032 1,060,990
Provision for dismantling and restoration 35,647 40,070 35,497
Deferred tax liabilities 140,615 108,045 122,803
Liabilities for employee benefits, net 160 160 160
Total non-current liabilities 3,231,180 3,336,447 3,175,042
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 475,417 343,623 415,032
Total equity 1,121,375 989,581 1,060,990
Total liabilities and equity 4,927,237 5,008,006 4,817,886

 * Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.


 

Dorad Energy Ltd.

Interim Condensed Statements of Cash Flows

Mar-31 Mar-31 Dec-31 For the three months ended Year ended Capital reserve For the three months ended Year ended
2019  *2018  *2018 Mar-31 Dec-31 for activities Mar-31 Dec-31
(Unaudited) (Unaudited) (Audited) 2019  *2018  *2018 Share Share with Retained 2019  *2018  *2018
NIS thousands NIS thousands NIS thousands (Unaudited) (Unaudited) (Audited) capital premium shareholders earnings Total Equity (Unaudited) (Unaudited) (Audited)
NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands NIS thousands
Current assets
Cash and cash equivalents 286,798 200,829 117,220 Revenues 713,078 684,852 2,628,607 For the three months  Cash flows from operating activities:
Trade receivables 242,852 285,670 297,997 Operating costs of the Power Plant ended March 31, 2019 Profit for the period 60,385 62,736 134,145
Other receivables 52,719 57,904 56,417 Energy costs 159,826 146,073 687,431 (Unaudited)
Financial derivatives - 2,189 387 Electricity purchase and infrastructure services 342,885 326,627 1,194,948 Balance as at Adjustments:
Total current assets 582,369 546,592 472,021 Depreciation and amortization 49,300 52,169 217,795 January 1, 2019 (Audited) 11 642,199 3,748 415,032 1,060,990 Depreciation and amortization and fuel consumption 57,368 52,306 223,028
Other operating costs 40,789 37,294 136,705 Profit for the period - - - 60,385 60,385 Taxes on income 17,813 18,747 33,505
Non-current assets Total operating cost of Power Plant 592,800 562,163 2,236,879 Balance as at Financing expenses, net 37,108 35,928 203,338
Restricted deposit 427,671 412,752 431,096 March 31, 2019 112,289 106,981 459,871
Prepaid expenses 41,175 43,292 41,704 Profit from operating the Power Plant 120,278 122,689 391,728 (Unaudited) 11 642,199 3,748 475,417 1,121,375
Fixed assets 3,819,496 3,999,905 3,869,800 General and administrative expenses 4,972 5,278 20,740 Change in trade receivables 55,145 44,727 32,536
Intangible assets 2,463 5,465 3,265 For the three months  Change in other receivables 3,698 12,736 6,119
Right of use assets 54,063 - - Operating profit 115,306 117,411 370,988 ended March 31, 2018 Change in trade payables (55,854) (118,786) (81,273)
Total non-current assets 4,344,868 4,461,414 4,345,865 Financing income 1,031 4,231 24,650 (Unaudited) Change in other payables 2,175 11,538 304
Financing expenses 38,139 40,159 227,988 Balance as at 5,164 (49,785) (42,314)
Total assets 4,927,237 5,008,006 4,817,886 Financing expenses, net 37,108 35,928 203,338 January 1, 2018 (Audited) 11 642,199 3,748 280,887 926,845
Profit before taxes on income 78,198 81,483 167,650 Profit for the period - - - 62,736 62,736 Net cash flows provided by operating activities 177,838 119,932 551,702
Current liabilities Taxes on income 17,813 18,747 33,505 Balance as at
Current maturities of loans from banks  257,502 249,287 217,254 Profit for the period 60,385 62,736 134,145 March 31, 2018* Cash flows used in investing activities
Current maturities of loans from related parties 18,175 110,000 17,805 (Unaudited) 11 642,199 3,748 343,623 989,581 Proceeds from (payment for) settlement of financial derivatives (393) 74 9,957
Current maturities of lease liabilities 4,294 - - Insurance proceeds in respect of damage to fixed asset - 12,650 20,619
Trade payables 286,459 305,504 340,829 For the year ended Investment in long-term restricted deposits - (5,158) (12,158)
Other payables 8,141 17,187 5,966 December 31, 2018 Investment in fixed assets (4,946) (30,951) (79,855)
Financial derivatives 111 - - (Audited) Investment in intangible assets - (119) (222)
Total current liabilities 574,682 681,978 581,854 Balance as at Interest received 1,012 777 3,497
January 1, 2018 (Audited) 11 642,199 3,748 280,887 926,845 Net cash flows used in investing activities (4,327) (22,727) (58,162)
Non-current liabilities Profit for the year 134,145 134,145
Loans from banks 3,007,784 3,180,408 3,016,582 Balance as at  Cash flows from financing activities:
Loans from related parties - 7,764 - December 31, 2018 * Repayment of loans from related parties - (62,802) (160,326)
Long-term lease liabilities 46,974 - - (Audited) 11 642,199 3,748 415,032 1,060,990 Repayment of loans from banks - - (181,970)
Provision for dismantling and restoration 35,647 40,070 35,497 Interest paid (124) (18,011) (220,765)
Deferred tax liabilities 140,615 108,045 122,803 Repayment of lease liability principal (4,098) - -
Liabilities for employee benefits, net 160 160 160 Net cash flows used in financing activities (4,222) (80,813) (563,061)
Total non-current liabilities 3,231,180 3,336,447 3,175,042 Net increase in cash and cash equivalents
for the period 169,289 16,392 (69,521)
Equity Effect of exchange rate fluctuations on cash and cash 
Share capital  11 11 11 equivalents 289 255 2,559
Share premium 642,199 642,199 642,199 Cash and cash equivalents at beginning of period 117,220 184,182 184,182
Capital reserve from activities with shareholders 3,748 3,748 3,748 Cash and cash equivalents at end of period  286,798 200,829 117,220
Retained earnings 475,417 343,623 415,032
Total equity 1,121,375 989,581 1,060,990
Total liabilities and equity 4,927,237 5,008,006 4,817,886

* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.

 

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