Home Middle East & Africa Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three and Six Months Ended June 30, 2017
Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three and Six Months Ended June 30, 2017

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

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TEL-AVIV, Israel, August 31, 2017 — 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 six months ended June 30, 2017 of Dorad Energy Ltd. (“Dorad”), in which Ellomay currently indirectly holds approximately 9.4%.

On August 31, 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 June 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 September 17, 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 June 30, 2017 – approximately NIS 536.6 million (or approximately USD 153.5 million, based on the exchange rate on June 30, 2017).
Dorad’s unaudited operating profit for the three months ended June 30, 2017 – approximately NIS 46.3 million (or approximately USD 13.3 million, based on the exchange rate on June 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 June 30, 2017, which include the intermediate months of April, May and June, 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 six month periods ended June 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.

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 and approximately 7.9MW of photovoltaic power plants in Spain;
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
June 30June 30December 31
201720162016
(Unaudited)(Unaudited)(Audited)
NIS thousandsNIS thousandsNIS thousands
Assets
Cash and cash equivalents81,313217,21680,967
Trade receivables265,829276,624294,351
Other receivables97,52918,39137,174
Pledged deposits29,486
Total current assets444,671541,717412,492
Restricted deposits393,657305,741411,574
Prepaid expenses44,88046,00545,938
Fixed assets4,099,5404,283,9324,170,151
Intangible assets7,4208,8588,551
Total non-current assets4,545,4974,644,5364,636,214
Total assets4,990,1685,186,2535,048,706
Liabilities
Current maturities of loans from banks203,415174,352197,389
Current maturities of loans from related parties70,000350,00080,000
Trade payables329,456327,085293,613
Other payables22,82210,0389,152
Financial derivatives7,298430
Total current liabilities632,991861,905580,154
Loans from banks3,287,9913,221,0593,367,832
Loans from related parties116,812198,272151,638
Provision for dismantling and restoration35,96835,43435,700
Deferred tax liabilities, net66,30560,47565,618
Liabilities for employee benefits, net160160160
Total non-current liabilities3,507,2363,515,4003,620,948
Equity
Share capital111111
Share premium642,199642,199642,199
Capital reserve from activities with shareholders3,7483,7483,748
Retained earnings203,983162,990201,646
Total equity849,941808,948847,604
Total liabilities and equity4,990,1685,186,2535,048,706

Dorad Energy Ltd.
Interim Condensed Statements of Profit and Loss
For the six months endedFor the three months endedYear ended
June 30June 30December 31
20172016201720162016
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Audited)
NIS thousandsNIS thousandsNIS thousandsNIS thousandsNIS thousands
Revenues1,211,2891,126,458536,602516,5162,299,565
Operating costs of the
 Power Plant
Energy costs291,795284,809145,767157,990550,401
Electricity purchase and
 infrastructure services603,411543,635273,001239,2801,104,826
Depreciation and
 amortization97,634105,33046,18953,991209,057
Other operating costs57,91565,19025,29634,279141,132
Total operating costs
 of Power Plant1,050,755998,964490,253485,5402,005,416
Profit from operating
 the Power Plant160,534127,49446,34930,976294,149
General and
 administrative expenses8,5768,7454,5054,68719,178
Operating profit151,958118,74941,84426,289274,971
Financing income1,8102,1981,3121,9867,025
Financing expenses(150,744)(108,804)(89,829)(69,676)(226,054)
Financing expenses, net(148,934)(106,606)(88,517)(67,690)(219,029)
Profit (loss) before taxes
on income3,02412,143(46,673)(41,401)55,942
Tax benefit (Taxes on
 income)(687)40710,74410,350(4,736)
Profit (loss) for the period2,33712,550(35,929)(31,051)51,206
Dorad Energy Ltd.
Interim Condensed Statements of Changes in Shareholders’ Equity
Capital
reserve for
ShareShareactivities withRetained
capitalpremiumshareholdersearningsTotal Equity
NIS thousandsNIS thousandsNIS thousandsNIS thousandsNIS thousands
For the six months
 ended June 30, 2017
 (Unaudited)
Balance as at
 January 1, 2017 (Audited)11642,1993,748201,646847,604
Profit for the period2,3372,337
Balance as at
 June 30, 2017 (Unaudited)11642,1993,748203,983849,941
For the six months
 ended June 30, 2016
 (Unaudited)
Balance as at
 January 1, 2016 (Audited)11642,1993,748150,440796,398
Profit for the period12,55012,550
Balance as at
 June 30, 2016 (Unaudited)11642,1993,748162,990808,948
For the three months
 ended June 30, 2017
 (Unaudited)
Balance as at
 April 1, 2017 (Unaudited)11642,1993,748239,912885,870
Loss for the period(35,929)(35,929)
Balance as at
 June 30, 2017 (Unaudited)11642,1993,748203,983849,941
For the three months
 ended June 30, 2016
 (Unaudited)
Balance as at
 April 1, 2016 (Unaudited)11642,1993,748194,041839,999
Loss for the period(31,051)(31,051)
Balance as at
 June 30, 2016 (Unaudited)11642,1993,748162,990808,948
For the year ended
 December 31, 2016 (Audited)
Balance as at
 January 1, 2016 (Audited)11642,1993,748150,440796,398
Profit for the year51,20651,206
Balance as at
 December 31, 2016 (Audited)11642,1993,748201,646847,604

Dorad Energy Ltd.
Interim Condensed Statements of Cash Flows
For the six months endedFor the three months endedYear ended
June 30June 30December 31
20172016201720162016
(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Audited)
NIS thousandsNIS thousandsNIS thousandsNIS thousandsNIS thousands
Cash flows from
 operating activities:
Profit (loss) for the period2,33712,550(35,929)(31,051)51,206
Adjustments:
Depreciation and amortization
 and fuel consumption142,906114,07872,81656,446238,484
Taxes on income (tax  benefit)687(407)(10,744)(10,350)4,736
Financing expenses, net148,934106,60688,51767,690219,029
292,527220,277150,589113,786462,249
Change in trade receivables29,1022,9668,581(22,457)(14,761)
Change in other receivables(60,355)13,604(41,999)7,392(5,179)
Change in trade payables36,70780,82842,9847,18848,807
Change in other payables(2,387)163(19,779)(2,744)677
Change in employee benefits, net
3,06797,561(10,213)(10,621)29,544
Net cash flows provided
 by operating activities297,931330,388104,44772,114542,999
Cash flows from
 investing activities
Payment for settlement of
 financial derivatives(4,633)(1,365)(2,784)(1,043)(2,017)
Release of pledged deposit29,486
Investment in long-term
 restricted deposits(21,000)(40,391)(40,391)(143,891)
Release of long-term restricted
 deposits25,79070,00012,57270,00070,000
Long-term prepaid expenses(90)(90)(1,056)
Investment in fixed assets(53,786)(15,779)(21,804)(10,576)(25,415)
Investment in intangible assets(258)(1,755)(227)(273)(2,804)
Interest received1,230121732105624
Net cash flows provided by (used
 in) investing activities(52,657)10,741(11,511)17,732(75,073)
Cash flows from
 financing activities:
Receipt of long-term
 loans from related parties16,689
Receipt of long-term
 loans from banks242,772
Repayment of long-term loans
 from related parties(39,628)(147,219)
Repayment of loans from banks(85,112)(73,460)(85,112)(73,460)(143,896)
Interest paid(120,865)(102,679)(105,183)(102,077)(408,071)
Net cash flows used in
 financing activities(245,605)(176,139 )(190,295)(175,537)(439,725)
Net increase (decrease) in cash
 and cash equivalents(331)164,990(97,359)(85,691)28,201
Effect of exchange rate fluctuations
 on cash and cash equivalents677332523436872
Cash and cash equivalents at
 beginning of period80,96751,894178,149302,47151,894
Cash and cash equivalents at end
 of period81,313217,21681,313217,21680,967

Source: Ellomay Capital Ltd
Anand Gupta Editor - EQ Int'l Media Network

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