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: HilaI@ellomay.com
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content:http://www.prnewswire.com/news-releases/ellomay-capital-reports-publication-of-financial-statements-of-dorad-energy-ltd-for-the-year-ended-december-31-2019-301031383.html
SOURCE Ellomay Capital Ltd