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

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TEL AVIV, Israel, Nov. 28, 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 nine months ended September 30, 2017 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.

On November 27, 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 September 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 December 20, 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 September 30, 2017 - approximately NIS 716.2 million (or approximately USD 202.9 million, based on the exchange rate on September 30, 2017).
  • Dorad's unaudited operating profit for the three months ended September 30, 2017 - approximately NIS 135.4 million (or approximately USD 38.4 million, based on the exchange rate on September 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 September 30, 2017, which include the summer months of July and August and the intermediate month of September, 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 nine month periods ended September 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.

On October 1, 2017, Eilat Ashkelon Infrastructure Services Ltd. ("EAIS"), which holds 37.5% of Dorad's shares, filed a statement of claim in the arbitration proceedings held in connection with the petition to approve a derivative claim (the "Claim") filed by Dori Energy and Hemi Raphael against the other two shareholders of Dorad, Zorlu Enerji Elektrik Uretim A.S and Edelcom Ltd. ("Edelcom") and several other plaintiffs, in connection with the engineering, procurement & construction contractor of the power plant held by Dorad. In its statement of claim, EAIS joins Dori Energy's and Mr. Raphael's request as set forth in the Claim and raises claims that are similar to the claims raised by Dori Energy and Mr. Raphael in the Claim. Following EAIS's filing, the arbitrator determined the dates for filing responses on behalf of the plaintiffs and determined dates for the final preliminary hearing (scheduled for January 1, 2018) and for the discovery process.

On October 26, 2017, Edelcom filed an appeal with respect to the ruling of the Israeli District Court issued on August 31, 2017, in which the Court ruled that a pledge on Dori Energy's shares held by the Luzon Group (as contemplated by the Luzon Group in its prospectus governing the debentures issued by the Luzon Group in Israel) does not provide a right of first refusal to Dorad's other shareholders.

As reported in Dorad's financial statements for the three and nine month periods ended September 30, 2017, on October 30, 2017, Dorad signed an agreement with Energian Israel Ltd. regarding the possible acquisition of natural gas from the Karish and Tanin reserves held by it (which are expected to complete construction by the end of 2020), to purchase natural gas in a cumulative volume of approximately 6 BCM over a period of 14 years. The agreement between Dorad and Energian Israel Ltd. is subject to conditions precedent.

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, 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 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.

 

 

Dorad Energy Ltd.

Interim Condensed Statements of Financial Position




September 30

September 30

December 31



2017

2016

2016



(Unaudited)

(Unaudited)

(Audited)



NIS thousands

NIS thousands

NIS thousands

Assets





Cash and cash equivalents


308,106

215,072

80,967

Trade receivables


296,623

227,405

294,351

Other receivables


82,018

17,615

37,174

Total current assets


686,747

460,092

412,492











Restricted deposit


395,661

408,043

411,574

Prepaid expenses


44,350

45,502

45,938

Fixed asset


4,058,427

4,231,913

4,170,151

Intangible assets


6,683

8,297

8,551

Total non-current assets


4,505,121

4,693,755

4,636,214






Total assets


5,191,868

5,153,847

5,048,706






Liabilities





Current maturities of loans from banks


252,000

234,680

197,389

Current maturities of loans from related parties


70,000

70,000

80,000

Trade payables


413,988

267,688

293,613

Other payables


4,628

10,818

9,152

Financial derivatives


3,372

1,574

-

Total current liabilities


743,988

584,760

580,154











Loans from banks


3,274,223

3,464,531

3,367,832

Loans from related parties


120,404

156,946

151,638

Provision for dismantling and restoration


36,103

35,567

35,700

Deferred tax liabilities, net


89,473

71,102

65,618

Liabilities for employee benefits, net


160

160

160

Total non-current liabilities


3,520,363

3,728,306

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


281,559

194,823

201,646

Total equity


927,517

840,781

847,604






Total liabilities and equity


5,191,868

5,153,847

5,048,706

 

 

Dorad Energy Ltd.

Interim Condensed Statements of Profit and Loss



For the nine months ended

For the three months ended

Year ended


September 30

September 30

December 31


2017

2016

2017

2016

2016


(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)


NIS thousands

NIS thousands

NIS thousands

NIS thousands

NIS thousands







Revenues

1,927,460

1,739,691

716,171

613,233

2,299,565







Operating costs of the
Power Plant






Energy costs

480,876

419,033

189,081

134,223

550,401

Electricity purchase and






 infrastructure services

914,350

813,480

310,939

269,846

1,104,826

Depreciation and   amortization

150,147

157,811

52,513

52,480

209,057

Other operating costs

81,275

102,815

23,360

37,626

141,132







Total operating cost of
Power Plant

1,626,648

1,493,139

575,893

494,175

2,005,416







Profit from operating the






 Power Plant

300,812

246,552

140,278

119,058

294,149







General and administrative






 expenses

13,497

13,612

4,921

4,867

19,178







Operating profit

287,315

232,940

135,357

114,191

274,971







Financing income

2,427

1,429

617

(768)

7,025

Financing expenses

(185,974)

(179,766)

(35,230)

(70,963)

(226,054)

Financing expenses, net

(183,547)

(178,337)

(34,613)

(71,731)

(219,029)







Profit before taxes






 on income

103,768

54,603

100,744

42,460

55,942







Taxes on income

(23,855)

(10,220)

(23,168)

(10,627)

(4,736)







Profit  for the period

79,913

44,383

77,576

31,833

51,206

 

 

Dorad Energy Ltd.


Interim Condensed Statements of Changes in Shareholders' Equity





Capital reserve




Share

Share

for activities with

Retained



capital

premium

shareholders

earnings

Total Equity


NIS thousands

NIS thousands

NIS thousands

NIS thousands

NIS thousands







For the nine month period ended







 September 30, 2017 (Unaudited)














Balance as at







 January 1, 2017 (Audited)

11

642,199

3,748

201,646

847,604









Profit for the period

-

-

-

79,913

79,913









Balance as at September 30,







 2017 (Unaudited)

11

642,199

3,748

281,559

927,517









For the nine month period ended







 September 30, 2016 (Unaudited)













Balance as at







 January 1, 2016 (Audited)

11

642,199

3,748

150,440

796,398









Profit for the period

-

-

-

44,383

44,383









Balance as at September 30,







 2016 (Unaudited)

11

642,199

3,748

194,823

840,781









For the three month period ended







 September 30, 2017 (Unaudited)














Balance as at







 July 1, 2017 (Unaudited)

11

642,199

3,748

203,983

849,941









Profit for the period

-

-

-

77,576

77,576









Balance as at September 30,







 2017 (Unaudited)

11

642,199

3,748

281,559

927,517









For the three month period ended







September 30, 2016 (Unaudited)














Balance as at







July 1, 2016 (Unaudited)

11

642,199

3,748

162,990

808,948









Profit for the period

-

-

-

31,833

31,833









Balance as at September 30,







2016 (Unaudited)

11

642,199

3,748

194,823

840,781









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 nine months ended

For the three months ended

Year ended


September 30

September 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 for the period

79,913

44,383

77,576

31,833

51,206

Adjustments:






Depreciation and amortization






 and fuel consumption

213,751

171,941

70,845

57,862

238,484

Taxes on income

23,855

10,220

23,168

10,627

4,736

Financing expenses, net

183,547

178,337

34,613

71,731

219,029


421,153

360,498

128,626

140,220

462,249







 Change in trade receivables

(1,692)

52,185

(30,794)

49,219

(14,761)

 Change in other receivables

(61,955)

14,379

(1,600)

776

(5,179)

 Change in trade payables

107,940

23,566

71,234

(57,262)

48,807

 Change in other payables

(1,078)

1,714

1,308

1,553

677


43,215

91,844

40,148

(5,714)

29,544

 Net cash flows provided by






 operating activities

544,281

496,725

246,350

166,339

542,999







Cash flows used in






 investing activities






Payments for settlement of






 financial derivatives

(7,018)

(2,670)

(2,385)

(1,305)

(2,017)

Release of pledged deposit

-

29,486

-

29,486

29,486

Insurance proceeds in respect of






 damage to fixed asset

15,444

-

15,444

-

-

Investment in long-term restricted






 deposits

(21,000)

(143,891)

-

(103,500)

(143,891)

Release of long-term restricted






 deposits

25,790

70,000

-

-

70,000

Long-term prepaid expenses

-

(90)

-

-

(1,056)

Investment in fixed assets

(95,277)

(21,221)

(41,491)

(5,442)

(25,415)

Investment in intangible assets

(258)

(1,864)

-

(110)

(2,804)

Interest received

1,847

196

617

75

624

Net Cash flows used in






 investing activities

(72,331)

(70,054)

(19,674)

(80,796)

(75,073)







Cash flows from financing






 activities:






Receipt of long-term loans






 from related parties

-

16,689

-

16,689

16,689

Receipt of long-term loans from banks

-

242,772

-

242,772

242,772

Repayment of long-term loans






 from related parties

(39,628)

(147,219)

-

(147,219)

(147,219)

Repayment of loans from banks

(85,112)

(73,460)

-

-

(143,896)

Interest paid

(121,093)

(302,676)

(228)

(199,997)

(408,071)

Net cash flows used in






 financing activities

(245,833)

(263,894)

(228)

(87,755)

(439,725)







Net increase (decrease) in cash






 and cash equivalents for the period

226,117

162,777

226,448

(2,212)

28,201







Effect of exchange rate






 fluctuations on cash and cash






 equivalents

1,022

401

345

69

872







Cash and cash equivalents at






 beginning of period

80,967

51,894

81,313

217,215

51,894







Cash and cash equivalents at






 end of period

308,106

215,072

308,106

215,072

80,967







 

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

 

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SOURCE Ellomay Capital Ltd

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