Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Three and Nine Month Periods Ended September 30, 2020

TEL-AVIV, Israel, Nov. 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 nine months ended September 30, 2020 of Dorad Energy Ltd. ("Dorad"), in which Ellomay currently indirectly holds approximately 9.4%.

On November 25, 2020, Amos Luzon Entrepreneurship and Energy 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 September 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 December 31, 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 September 30, 2020 - approximately NIS 697.1 million.
  • Dorad's unaudited operating profit for the three months ended September 30, 2020 - approximately NIS 112.7 million.

Dorad's financial statements for the three and nine month periods ended September 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 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 and 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.

The Luzon Group's quarterly report updates that Dorad is considering the possibility of constructing another power plant near the existing station, that on July 13, 2020 Dorad submitted to the National Infrastructure Committee ("NIC") plans for public objections and that in August 2020 the NIC approved the transfer of the plans to the District Committee and public comments, subject to certain changes and amendments. As of the date of the report, Dorad has not yet made a final decision as to the construction of the additional power plant, as, among other things, the procedure for the adoption of such decision is currently the subject of legal proceedings among Dorad's shareholders and Dorad, as further detailed in our financial statements for the six months ended June 30, 2020, submitted to the Securities and Exchange Commission on a Form 6-K dated September 24, 2020.

The Luzon Group's quarterly report further discloses that during the first half of 2020, Dorad started examining the possibility of an initial public offering of its shares and that at this stage, the management of Dorad is examining with legal and financial advisors the stages required and the feasibility of the initial public offering. Any further decision or advancement in connection with such offering is subject to, among other things, the approval of Dorad's shareholders and the prevailing market terms and there is no certainty as to whether or when any of these or other conditions will be fulfilled. 

 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, 2020, which include the summer months of July and August and the intermediate month 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 nine month periods ended September 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, 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: kaliaw@ellomay.com   

 

Dorad Energy Ltd.


Condensed Interim Statement of Financial Position




September 30

September 30

December 31



2020

2019

2019



(Unaudited)

(Unaudited)

(Audited)



NIS thousands

NIS thousands

NIS thousands

Current assets





Cash and cash equivalents


418,733

393,646

266,021

Trade receivables and accrued income


218,858

253,309

292,759

Other receivables


8,448

8,734

22,685

Total current assets


646,039

655,689

581,465






Non-current assets





Restricted deposit


446,966

424,078

438,032

Prepaid expenses


35,729

40,116

37,225

Fixed assets


3,557,177

3,721,981

3,698,716

Intangible assets


5,528

2,214

2,247

Right of use assets


60,985

57,224

64,161

Total non-current assets


4,106,385

4,245,613

4,240,381






Total assets


4,752,424

4,901,302

4,821,846






Current liabilities





Current maturities of loans from banks


272,762

267,032

231,380

Current maturities of lease liabilities


3,039

4,546

4,551

Trade payables


262,785

268,305

288,127

Other payables


25,297

15,846

10,509

Financial derivatives


515

2,339

-

Total current liabilities


564,398

558,068

534,567






Non-current liabilities





Loans from banks


2,669,511

2,911,651

2,803,975

Long-term lease liabilities


55,929

52,385

54,052

Provision for dismantling and restoration


50,058

35,950

36,102

Deferred tax liabilities


202,706

159,165

170,676

Liabilities for employee benefits, net


160

160

160

Total non-current liabilities


2,978,364

3,159,311

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


563,704

537,965

576,356

Total equity


1,209,662

1,183,923

1,222,314






Total liabilities and equity


4,752,424

4,901,302

4,821,846

 

 

Dorad Energy Ltd.


Condensed Interim Statement of Income



For the nine months ended

For the three months ended

Year ended


September 30

September 30

December 31


2020

2019

2020

2019

2019


(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)


NIS thousands

NIS thousands

NIS thousands

NIS thousands

NIS thousands

Revenues

1,884,621

2,069,997

697,061

765,384

2,700,766







Operating costs of the






 Power Plant












Energy costs

417,892

564,179

143,458

214,253

708,662

Electricity purchase and






 infrastructure services

922,584

896,575

332,330

291,419

1,208,223

Depreciation and






 amortization

179,889

161,028

72,833

55,660

214,248

Other operating costs

111,671

119,556

35,729

37,788

151,116







Total operating costs






 of Power Plant

1,632,036

1,741,338

584,350

599,120

2,282,249







Profit from operating






 the Power Plant

252,585

328,659

112,711

166,264

418,517







General and






 administrative expenses

19,011

14,832

5,590

5,105

20,676







Operating profit

233,574

313,827

107,121

161,159

397,841







Financing income

2,479

3,162

635

1,225

4,237

Financing expenses

96,675

157,694

40,294

25,072

192,881







Financing expenses, net

94,196

154,532

39,659

23,847

188,644







Profit before






 taxes on income

139,378

159,295

67,462

137,312

209,197







Taxes on income

32,030

36,362

15,497

31,574

47,873







Profit for the period

107,348

122,933

51,965

105,738

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 nine months






 ended September 30, 2020






 (Unaudited)












Balance as at






 January 1, 2020 (Audited)

11

642,199

3,748

576,356

1,222,314







Profit for the period

-

-

-

107,348

107,348

Dividend to the Company's






 shareholders

-

-

-

(120,000)

(120,000)







Balance as at






 September 30, 2020 (Unaudited)

11

642,199

3,748

563,704

1,209,662







For the nine months






 ended September 30, 2019






 (Unaudited)












Balance as at






 January 1, 2019 (Audited)

11

642,199

3,748

415,032

1,060,990







Profit for the period

-

-

-

122,933

122,933







Balance as at






 September 30, 2019 (Unaudited)

11

642,199

3,748

537,965

1,183,923

For the three months






 ended September 30, 2020






 (Unaudited)












Balance as at






 July 1, 2020 (Unaudited)

11

642,199

3,748

511,739

1,157,697







Profit for the period

-

-

-

51,965

51,965







Balance as at






 September 30, 2020 (Unaudited)

11

642,199

3,748

563,704

1,209,662







For the three months






 ended September 30, 2019






 (Unaudited)












Balance as at






 July 1, 2019 (Unaudited)

11

642,199

3,748

432,227

1,078,185







Profit for the period

-

-

-

105,738

105,738







Balance as at






 September 30, 2019 (Unaudited)

11

642,199

3,748

537,965

1,183,923

 

 

 

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.


Interim Condensed Statements of Cash Flows



For the nine months ended

For the three months ended

Year ended


September 30

September 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 for the period

107,348

122,933

51,965

105,738

161,324

Adjustments:






Depreciation and amortization






 and fuel consumption

182,508

185,403

73,127

65,427

239,323

Taxes on income

32,030

36,362

15,497

31,574

47,873

Financing expenses, net

94,196

154,532

39,659

23,847

188,644


308,734

376,297

128,283

120,848

475,840







Change in trade receivables

73,901

44,688

(7,465)

2,894

5,238

Change in other receivables

14,234

39,345

6,576

26,454

25,394

Change in trade payables

(26,120)

(76,871)

26,227

(2,782)

(57,719)

Change in other payables

14,791

9,884

22,629

2,100

4,543


76,806

17,046

47,967

28,666

(22,544)

Net cash flows provided






 by operating activities

492,888

516,276

228,215

255,252

614,620







Cash flows used in






 investing activities






Proceeds (payment) for settlement of






 financial derivatives

(696)

(2,567)

(817)

(1,697)

(4,551)

Insurance proceeds in respect of






 damage to fixed asset

-

8,336

-

-

8,336

Investment in long-term






 restricted deposit

(6,000)

-

-

-

(14,000)

Investment in fixed assets

(21,853)

(31,789)

(14,135)

(11,133)

(60,476)

Investment in intangible assets

(4,367)

(615)

(2,557)

(596)

(939)

Interest received

2,473

3,140

633

1,222

4,213

Net cash flows used in






 investing activities

(30,443)

(23,495)

(16,876)

(12,204)

(67,417)







Cash flows from






 financing activities:






Repayment of lease liability principal

(441)

(4,399)

(147)

(154)

(8,513)

Repayment of loans from






 related parties

-

(17,704)

-

-

(17,704)

Repayment of loans from banks

(102,653)

(101,430)

-

-

(189,893)

Dividends and exchange rate






 paid

(123,739)

-

-

-

-

Interest paid

(86,680)

(92,970)

(151)

(172)

(182,435)

Net cash flows used in






 financing activities

(313,513)

(216,503)

(298)

(326)

(398,545)







Net increase in cash






 and cash equivalents for






 the period

148,932

276,278

211,041

242,722

148,658







Effect of exchange rate fluctuations






 on cash and cash equivalents

3,780

148

(170)

28

143

Cash and cash equivalents at






 beginning of period

266,021

117,220

207,862

150,896

117,220

Cash and cash equivalents at end






 of period

418,733

393,646

418,733

393,646

266,021

 

 

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SOURCE Ellomay Capital Ltd

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