Ellomay Capital Reports Publication of Financial Statements

|Aug 27|magazine38 min read

TEL AVIV, Israel, Aug. 27, 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 three and six months ended June 30, 2020 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.

On August 27, 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 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 statements of Dorad for the quarter ended June 30, 2020 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 24, 2020.  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, 2020 - approximately NIS 508.7 million.
  • Dorad's unaudited operating profit for the year ended June 30, 2020 - approximately NIS 32.7 million.

Dorad's financial statements for the three and six month periods ended June 30, 2020 note that following the outbreak of the coronavirus (COVID-19) in China in December 2019, and the spreading of the coronavirus to many other countries in early 2020, there has been a decline in the scope of economic activity in many regions of the world, as well as in Israel. The spreading of the coronavirus caused, among other things, a disruption in the supply chain, a decrease in global transport volume, traffic and employment restrictions declared by the Israeli government and other governments around the world, as well as declines in the value of financial assets and commodities in markets in Israel and around the world. Dorad notes that it is operating in accordance with the guidelines of the Israeli Ministries of Energy and Health on dealing with the coronavirus crisis, including preparations of the operation and maintenance employees of the power plant and shift work as required. Dorad's financial statements further note that in light of the crisis, there is a certain decrease in the electricity consumption of various customers, and there is also a certain decrease in the demand of the Israel Electric Company, however the period March-June is an interim period in which the electricity consumption is not the highest in the year, and accordingly such reduction has not resulted in a material effect at this time. Dorad notes that it is continuously examining its potential methods of action in the event of a material decline in its income as a result of the spread of the coronavirus.

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, 2020, which include the intermediate months of April - June, are not indicative of full year results. In addition, 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 second quarter results in the future.

A translation of the financial results for Dorad as of and for the year ended December 31, 2019 and as of and for the three and six month periods ended June 30, 2019 and 2020 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 860MW, 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 decisions of the Israeli Electricity Authority, 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 the coronavirus pandemic 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), in addition to other risks and uncertainties associated with the Company's business that 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: [email protected]    

 

 





Dorad Energy Ltd.

Interim Condensed Statement of Financial Position








June 30

June 30

December 31



2020

2019

2019



(Unaudited)

(Unaudited)

(Audited)



NIS thousands

NIS thousands

NIS thousands






Current assets





Cash and cash equivalents


207,862

150,896

266,021

Trade receivables and accrued income


211,393

256,203

292,759

Other receivables


15,026

35,188

22,685

Total current assets


434,281

442,287

581,465






Non-current assets





Restricted deposit


445,911

426,215

438,032

Prepaid expenses


36,228

40,646

37,225

Fixed assets


3,614,286

3,774,594

3,698,716

Intangible assets


3,427

1,919

2,247

Right of use assets


61,855

57,955

64,161

Total non-current assets


4,161,707

4,301,329

4,240,381






Total assets


4,595,988

4,743,616

4,821,846






Current liabilities





Current maturities of loans from banks


235,419

218,637

231,380

Current maturities of lease liabilities


3,018

4,575

4,551

Trade payables


236,487

270,191

288,127

Other payables


2,663

13,748

10,509

Financial derivatives


519

845

-

Total current liabilities


478,106

507,996

534,567






Non-current liabilities





Loans from banks


2,667,153

2,941,515

2,803,975

Long-term lease liabilities


55,651

52,372

54,052

Provision for dismantling and restoration


50,012

35,798

36,102

Deferred tax liabilities


187,209

127,590

170,676

Liabilities for employee benefits, net


160

160

160

Total non-current liabilities


2,960,185

3,157,435

3,064,965






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


511,739

432,227

576,356

Total equity


1,157,697

1,078,185

1,222,314






Total liabilities and equity


4,595,988

4,743,616

4,821,846

Dorad Energy Ltd.

Condensed Interim Statement of Income



For the six months ended

For the three months ended

Year ended


June 30

June 30

December 31


2020

2019

2020

2019

2019


(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)


NIS thousands

NIS thousands

NIS thousands

NIS thousands

NIS thousands







Revenues

1,187,560

1,304,613

508,742

591,535

2,700,766







Operating costs of the






 Power Plant












Energy costs

274,434

349,926

128,563

190,098

708,662

Electricity purchase and






 infrastructure services

590,254

605,156

256,076

262,271

1,208,223

Depreciation and






 amortization

107,056

105,368

53,623

56,068

214,248

Other operating costs

75,942

81,768

37,748

40,980

151,116







Total operating costs






 of Power Plant

1,047,686

1,142,218

476,010

549,417

2,282,249







Profit from operating






 the Power Plant

139,874

162,395

32,732

42,118

418,517







General and






 administrative expenses

13,421

9,727

6,937

4,756

20,676







Operating profit

126,453

152,668

25,795

37,362

397,841







Financing income

1,844

1,937

671

906

4,237

Financing expenses

56,381

132,623

40,776

94,483

192,881







Financing expenses, net

54,537

130,686

40,105

93,577

188,644







Profit (loss) before






 taxes on income

71,916

21,982

(14,310)

(56,215)

209,197







Tax benefit (taxes on 






  income)

(16,533)

(4,787)

3,290

13,025

(47,873)







Profit (loss) for the period

55,383

17,195

(11,020)

(43,190)

161,324

Dorad Energy Ltd.

Condensed Interim Statement of Changes in Shareholders' Equity





Capital reserve






for activities




Share

Share

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, 2020






 (Unaudited)












Balance as at






 January 1, 2020 (Audited)

11

642,199

3,748

576,356

1,222,314







Profit for the period

-

-

-

55,383

55,383

Dividend to the Company's






 shareholders

-

-

-

(120,000)

(120,000)







Balance as at






 June 30, 2020 (Unaudited)

11

642,199

3,748

511,739

1,157,697

For the six months






 ended June 30, 2019






 (Unaudited)












Balance as at






 January 1, 2019 (Audited)

11

642,199

3,748

415,032

1,060,990







Profit for the period

-

-

-

17,195

17,195







Balance as at






 June 30, 2019 (Unaudited)

11

642,199

3,748

432,227

1,078,185

For the three months






 ended June 30, 2020






 (Unaudited)












Balance as at






 April 1, 2020 (Unaudited)

11

642,199

3,748

522,759

1,168,717







Loss for the period

-

-

-

(11,020)

(11,020)







Balance as at






 June 30, 2020 (Unaudited)

11

642,199

3,748

511,739

1,157,697

For the three months






 ended June 30, 2019






 (Unaudited)












Balance as at






 April 1, 2019 (Unaudited)

11

642,199

3,748

475,417

1,121,375







Loss for the period

-

-

-

(43,190)

(43,190)







Balance as at






 June 30, 2019 (Unaudited)

11

642,199

3,748

432,227

1,078,185

Dorad Energy Ltd.

Condensed Interim Statement of Changes in Shareholders' Equity (cont'd)





Capital reserve






for activities




Share

Share

with

Retained



capital

premium

shareholders

earnings

Total Equity


NIS thousands

NIS thousands

NIS thousands

NIS thousands

NIS thousands







For the year ended






 December 31, 2019
(Audited)












Balance as at






 January 1, 2019 (Audited)

11

642,199

3,748

415,032

1,060,990







Profit for the year

-

-

-

161,324

161,324







Balance as at






 December 31, 2019 
(Audited)

11

642,199

3,748

576,356

1,222,314

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


2020

2019

2020

2019

2019


(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

55,383

17,195

(11,020)

(43,190)

161,324

Adjustments:






Depreciation and amortization






 and fuel consumption

109,380

119,976

54,728

62,608

239,323

Taxes on income (tax benefit)

16,533

4,787

(3,290)

(13,025)

47,873

Financing expenses, net

54,537

130,686

40,105

93,577

188,644


180,450

255,449

91,543

143,160

475,840







Change in trade receivables

81,366

41,793

29,170

(13,351)

5,238

Change in other receivables

7,659

12,891

5,084

9,195

25,394

Change in trade payables

(52,346)

(74,090)

(49,396)

(18,236)

(57,719)

Change in other payables

(7,844)

7,782

(7,649)

5,609

4,543


28,835

(11,624)

(22,791)

(16,783)

(22,544)

Net cash flows provided






 by operating activities

264,667

261,020

57,732

83,187

614,620







Cash flows used in






 investing activities






Proceeds (payment) for settlement of






 financial derivatives

121

(870)

(606)

(477)

(4,551)

Insurance proceeds in respect of






 damage to fixed asset

-

8,337

-

8,337

8,336

Investment in long-term






 restricted deposit

(6,000)

-

(6,000)

-

(14,000)

Investment in fixed assets

(7,717)

(20,656)

(4,558)

(15,712)

(60,476)

Investment in intangible assets

(1,810)

(19)

(1,741)

(19)

(939)

Interest received

1,840

1,918

668

906

4,213

Net cash flows used in






investing activities

(13,565)

(11,290)

(12,237)

(6,965)

(67,417)







Cash flows from






 financing activities:






Repayment of lease liability principal

(293)

(4,244)

(146)

(147)

(8,513)

Repayment of loans from






 related parties

-

(17,704)

-

(17,704)

(17,704)

Repayment of loans from banks

(102,653)

(101,430)

(102,653)

(101,430)

(189,893)

Dividends and exchange rate






 paid (see note 4.d)

(123,739)

-

-

-

-

Interest paid

(86,529)

(92,798)

(86,341)

(92,674)

(182,435)

Net cash flows used in






 financing activities

(313,214)

(216,176)

(189,140)

(211,955)

(398,545)







Net increase (decrease) in cash






 and cash equivalents for






 the period

(62,111)

33,554

(143,645)

(135,733)

148,658







Effect of exchange rate fluctuations






 on cash and cash equivalents

3,952

122

785

(168)

143

Cash and cash equivalents at






 beginning of period

266,021

117,220

350,722

286,797

117,220

Cash and cash equivalents at end






 of period

207,862

150,896

207,862

150,896

266,021

 

 

 

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SOURCE Ellomay Capital Ltd