Ellomay Capital Reports Publication of Financial Statements

|Mar 30|magazine32 min read

TEL-AVIV, Israel, March 30, 2020 /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 year ended December 31, 2019 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.

On March 26, 2020, 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 annual report in Israel based on the requirements of the Israeli Securities Law, 1968. Based on applicable regulatory requirements, the annual report of the Luzon Group includes the financial statements of Dorad for the same period.

The financial statements of Dorad for the year ended December 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 March 31, 2020 and will include the financial statements of Dorad in its annual report on Form 20-F for the year ended December 31, 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 revenues for the year ended December 31, 2019 - approximately NIS 2,700,766,000.
  • Dorad's operating profit for the year ended December 31, 2019 - approximately NIS 397,841,000.

Dorad informed the Company that in connection with the recent outbreak of the coronavirus (COVID-19) and the actions taken by governments and authorities to prevent the spread of the virus, Dorad is acting in accordance with the instructions of the Israeli Electricity and Health authorities and that due to the COVID-19 crisis there is a certain decrease in the electricity consumption of Dorad's customers and of the Israeli Electric Company. Dorad is examining the methods for managing in the event of a decrease in its revenues as a result. Dorad's financial statements note in connection with a natural gas supply agreement executed between Dorad and Energian Ltd. during 2017 that on February 5, 2020, Dorad was informed by Energian Ltd. that due to the COVID-19 spread in China, the Chinese government issued restrictions on travel and transportation including to an area where portions of its gas production facilities are manufactured and therefore there a delay is expected in the supply of gas to Dorad. Dorad notes that in the event of delays, it may purchase natural gas from its current supplier at a higher price than the price set in the agreement with Energian.

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. Due to various reasons, including the effects of the spread of COVID-19 and the economic impact of such spread and of actions taken by governments and authorities, the results included herein may not be indicative of full year results in the future.

A translation of the financial results for Dorad as of and for the years ended December 31, 2018 and 2019 and as of and for the years ended December 31, 2017, 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.

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 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;
  • 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;
  • 100% 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;
  • 75% of Ellomay Pumped Storage (2014) Ltd. (including 6.67% that are held by a trustee in trust for us and other parties), which is involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel.

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 the Company's forward-looking statements, including regulatory changes, including the outcome of the hearing process, 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 and the impact of COVID-19 virus on Dorad's operations and projects, including in connection with reductions in the consumption of electricity by Dorad's customers and the Israeli Electricity Company, delays in supply of gas, steps taken by Israeli authorities, regulatory changes, changes in the supply and prices of resources required for the operation of the Dorad's facilities (and in the price of oil and electricity, and technical and other disruptions in the operation of Dorad. 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.

Statements of Financial Position




December 31

December 31



2019

2018



NIS thousands

NIS thousands

Current assets




Cash and cash equivalents


266,021

117,220

Trade and Income receivable


292,759

297,997

Other receivables


22,685

56,417

Financial derivatives


-

387

Total current assets


581,465

472,021





Non-current assets




Restricted deposit


438,032

431,096

Prepaid expenses


37,225

41,704

Fixed assets


3,698,716

3,869,800

Intangible assets


2,247

3,265

Right of use assets


64,161

-

Total non-current assets


4,240,381

4,345,865





Total assets


4,821,846

4,817,886





Current liabilities




Current maturities of loans from banks


231,380

*224,444

Current maturity of loans from related parties


-

17,805

Current maturities of lease liabilities


4,551

-

Trade payables


288,127

340,829

Other payables


10,509

5,966

Total current liabilities


534,567

589,044





Non-current liabilities




Loans from banks


2,803,975

*3,009,392

Long-term lease liabilities


54,052

-

Provision for dismantling and restoration


36,102

35,497

Deferred tax liabilities, net


170,676

122,803

Liabilities for employee benefits, net


160

160

Total non-current liabilities


3,064,965

3,167,852





Equity




Share capital


11

11

Share premium


642,199

642,199

Capital reserve for activities with controlling
shareholders


3,748

3,748

Retained earnings


576,356

415,032


Total equity


1,222,314

1,060,990





Total liabilities and equity


4,821,846

4,817,886


* reclassified

 

 

 


 

Dorad Energy Ltd.

Statements of Profit or Loss




Year ended December 31,



2019

2018

2017



NIS thousands

NIS thousands

NIS thousands

Revenues


2,700,766

2,628,607

2,523,263






Operating costs of the power plant





Energy costs


708,662

687,431

616,221

Electricity purchase and infrastructure services


1,208,223

1,194,948

1,212,431

Depreciation and amortization


214,248

217,795

208,705

Other operating costs


151,116

136,705

122,345






Total cost of power plant


2,282,249

2,236,879

2,159,702






Profit from operating the power plant


418,517

391,728

363,561






General and administrative expenses


20,676

20,740

18,712






Operating profit


397,841

370,988

344,849






Financing income


4,237

24,650

3,195

Financing expenses


192,881

227,988

245,122

Financing expenses, net


188,644

203,338

241,927






Profit before taxes on income


209,197

167,650

102,922






Taxes on income


47,873

33,505

23,681






Profit for the year


161,324

134,145

79,241


 

 

Dorad Energy Ltd.

Statements of Changes in Equity





Capital






reserve for






activities with





Share

controlling

Retained



Share capital

premium

shareholders

earnings

Total equity


NIS thousands

NIS thousands

NIS thousands

NIS thousands

NIS thousands

For the year ended December 31, 2019












Balance as at January 1, 2019

11

642,199

3,748

415,032

1,060,990







Profit for the year

-

-

-

161,324

161,324













Balance as at December 31, 2019

11

642,199

3,748

576,356

1,222,314

For the year ended December 31, 2018












Balance as at January 1, 2018

11

642,199

3,748

280,887

926,845







Profit for the year

-

-

-

134,145

134,145







Balance as at December 31, 2018

11

642,199

3,748

415,032

1,060,990









For the year ended December 31, 2017












Balance as at January 1, 2017

11

642,199

3,748

201,646

847,604







Profit for the year

-

-

-

79,241

79,241







Balance as at December 31, 2017

11

642,199

3,748

280,887

926,845

 

 

Dorad Energy Ltd.



Statement of cash flows







Year ended December 31,



2019

2018

2017



NIS thousands

NIS thousands

NIS thousands


Cash flows from operating activities:




Profit for the year

161,324

134,145

79,241

Adjustments:




Depreciation, amortization and fuel consumption

239,323

223,028

286,542

Taxes on income

47,873

33,505

23,681

Financing expenses, net

188,644

203,338

241,927


475,840

459,871

552,150





Change in trade receivables

5,238

32,536

(35,465

Change in other receivables

25,394

6,119

(84,857)

Change in trade payables

(57,719)

(81,273)

123,045

Change in other payables

4,543

304

(2,669)


(22,544)

(42,314)

54









Cash flows from investing activities:

614,620

551,702

631,445

Proceeds from (payment for) settlement of financial derivatives

(4,551)

9,957

(10,596)

Insurance proceeds in respect of damage to fixed asset

8,336

20,619

38,742

Investment in long-term restricted deposits

(14,000)

(12,158)

(34,000)

Release of long-term restricted deposit

-

-

25,790

Investment in fixed assets

(60,476)

(79,855)

(121,361)

Investment in intangible assets

(939)

(222)

(413)

Interest received

4,213

3,497

1,268





Net cash used in investing activities

(67,417)

(58,162)

(100,570)





Cash flows from financing activities:




Repayment of lease liability principal

(8,513)

-

-

Repayment of loans from related parties

(17,704)

(160,326)

(39,628)

Repayment of loans from banks

(189,893)

(181,970)

(161,668)

Interest paid

(182,435)

(220,765)

(227,530)





Net cash used in financing activities

(398,545)

(563,061)

(428,826)





Net increase (decrease) in cash and cash equivalents

148,658

(69,521)

102,049





Effect of exchange rate fluctuations on cash and




 cash equivalents

143

2,559

1,166

Cash and cash equivalents at beginning of year

117,220

184,182

80,967









Cash and cash equivalents at end of year

266,021

117,220

184,182

 

 

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

 

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SOURCE Ellomay Capital Ltd