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
|
View original
content:http://www.prnewswire.com/news-releases/ellomay-capital-reports-publication-of-financial-statements-of-dorad-energy-ltd-for-the-three-and-nine-month-periods-ended-september-30-2020-301181061.html
SOURCE Ellomay Capital Ltd