Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd.

Ellomay Capital Indirectly Holds 7.5% of Dorad Energy Ltd.

Nov 26, 2014, 02:00 ET from Ellomay Capital Ltd.

TEL-AVIV, Israel, Nov. 26, 2014 /PRNewswire/ -- Ellomay Capital Ltd. (NYSE MKT: ELLO; TASE: ELOM) ("Ellomay" or the "Company"), an emerging operator in the renewable energy and energy infrastructure sector, today reported the publication in Israel of financial statements of Dorad Energy Ltd. ("Dorad"), in which Ellomay indirectly holds 7.5%.

On November 25, 2014, U. Dori Group Ltd. (the "Dori Group"), an Israeli public company that holds 60% of U. Dori Energy Infrastructures Ltd. ("Dori Energy"), 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 Dori Group includes the financial statements of Dorad. Dorad's power plant commenced operations during May 2014, and therefore the results for the period present the first full financial quarter of operations of the power plant.

The financial results of Dori Energy and of Dorad for the quarter ended September 30, 2014 were prepared in accordance with International Financial Reporting Standards. Ellomay will include its share of these results in the financial results of Ellomay for this period, which are currently expected to be published on or about December 31, 2014. 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 the Dorad financial results.

Dorad Financial Highlights

  • Dorad's unaudited revenues for the quarter ended September 30, 2014 - approximately NIS 693 million (or approximately USD 188 million, based on the exchange rate on September 30, 2014).
  • Dorad's unaudited operating profit for the quarter ended September 30, 2014 - approximately NIS 160 million (or approximately USD 43 million, based on the exchange rate on September 30, 2014).

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 September and from September to November. There is a higher demand for electricity during the winter and summer seasons, and the average electricity consumption 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, which include the summer months of July and August, are not indicative of full year results.

Ran Fridrich, CEO and a board member of Ellomay commented: "We are very pleased with the results of operations of the Dorad power plant in which we currently hold 7.5% with an option to increase our holdings to approximately 9.4%. The Dorad power plant is unique due to its ability to quickly adjust its capacity and operate based on the current demand and because it assists the Israeli energy market by backing up the Israeli electricity system, in addition to the fact that it sells cheaper electricity to the Israeli Ministry of Defense, the Israeli water company (Mekorot) and to the Israeli industry in general."

A translation of the financial results for Dorad as of and for the year ended December 31, 2013 and as of and for the three and nine month periods ended September 30, 2014 is included at the end of this press release. Ellomay does not undertake to separately report Dorad's financial results in a separate press release in the future. Neither Ellomay nor its independent public accountants have reviewed or consulted with the Dori Group, 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 MKT, under the trading symbol "ELLO" and with the Tel Aviv Stock Exchange under the trading symbol "ELOM."  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:

  • Approx. 22.6MW of photovoltaic power plants in Italy and approximately 5.6MW and 85% of 2.3MW of photovoltaic power plants in Spain;
  • 7.5% indirect interest, with an option to increase its holdings to 9.375%, in Dorad Energy Ltd. Israel's largest private power plant, with production capacity of approximately 800 MW, representing about 8% of Israel's total current electricity consumption;

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. 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, 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. 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.

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

 

 


Dorad Energy Ltd.

Condensed Interim Statement of Financial Position




September 30


September 30


December 31



2014


2013


2013



(Unaudited)


(Unaudited)


(Audited)



NIS thousands


NIS thousands


NIS thousands

Current assets







Cash and cash equivalents


371,641


665


4,199

Accounts receivable


247,663


-


-

Other accounts receivables


20,496


23,566


36,529

Pledged deposit


68,124


94,399


78,637

Firm commitment


-


19,339


5,101

Financial derivatives


4,179


-


-

Total current assets


712,103


137,969


124,466








Non-current assets







Prepaid expenses


49,426


50,166


50,165

Fixed assets


4,471,253


3,706,889


3,939,647

Advances to suppliers


-


109,519


56,978

Intangible assets


8,677


6,325


7,657

Total non-current assets


4,529,356


3,872,899


4,054,447








Total assets


5,241,459


4,010,868


4,178,913








Current liabilities







Current maturities of loans from banks


311,300


133,461


145,926

Trade payables and other accounts payable


675,598


149,173


123,313

Financial derivatives


-


25,613


7,894

Total current liabilities


986,898


308,247


277,133








Non-current liabilities







Loans from banks


3,063,207


2,745,783


2,918,579

Loans from related parties and others


454,644


404,559


369,212

Provision for dismantling and restoration


28,341


-


-

Deferred tax liabilities


17,815


-


-

Liabilities for employee benefits


62


79


57

Total non-current liabilities


3,564,069


3,150,421


3,287,848








Equity







Share capital


11


10


11

Share premium


642,199


573,633


642,199

Capital reserve from activities with controlling shareholders


3,748


3,748


3,748

Retained loss


44,536


(25,191)


(32,026)

Total equity


690,494


552,200


613,932








Total liabilities and equity


5,241,459


4,010,868


4,178,913

 


Dorad Energy Ltd.

Condensed Interim Statement of Earnings



For the nine months ended


For the three months ended


Year ended


September 30


September 30


December 31


2014


2013


2014


2013


2013


(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)


(Audited)


NIS thousands


NIS thousands


NIS thousands


NIS thousands


NIS thousands











Revenues

901,178


-


692,705


-


-











Operating costs of the power










 plant










Energy costs

196,258


-


140,269


-


-

Electricity purchase and

394,909


-


300,213


-


-

 infrastructure services










Depreciation and amortization

73,618


-


50,029


-


-

Other operating costs

49,264


-


35,732


-


-











Total cost of power plant

714,049


-


526,243


-


-











Profit from operating the










 power plant

187,129


-


166,462


-


-











General & Administrative










 expenses

(8,057)


-


6,334


-


-

Other expenses

(5,771)


(5,000)


-


(3,750)


(7,813)


(13,828)


(5,000)


6,334


(3,750)


(7,813)











Operating profit (loss) for










 the period

173,301


(5,000)


160,128


(3,750)


(7,813)











Financing income

22,415


-


21,062


-


-

Financing expenses

(101,338)


11,858


(68,799)


2,843


(15,880)

Financing expenses, net

(78,924)


(11,858)


(47,737)


(2,843)


(15,880)











Profit (loss)before taxes on income

94,377


(16,858)


(112,637)


(6,593)


(23,693)











Taxes on income

17,815


-


(28,637)


-


-











Profit (loss) for the period

76,562


(16,858)


83,752


(6,593)


(23,693)

 

Dorad Energy Ltd.

Condensed Interim Statement of Changes in Shareholders' Equity







Capital reserve










for activities






Share


Share


with controlling


Retained




capital


premium


shareholders


earnings (losses)


Total Equity


NIS thousands


NIS thousands


NIS thousands


NIS thousands


NIS thousands

For the nine months ended










 September 30, 2014 (Unaudited)









Balance as at










 January 1, 2014 (Audited)

11


642,199


3,748


(32,026)


613,932

Profit for the period

-


-


-


76,562


76,562

Balance as at September 30,










 2014 (Unaudited)

11


642,199


3,748


44,536


690,494











For the nine months ended










 September 30, 2013 (Unaudited)









Balance as at










 January 1, 2013 (Audited)

6


373,731


3,748


(8,333)


369,152

Loss for the period

-


-


-


(16,858)


(16,858)

Issuance of ordinary shares

4


199,902


-


-


199,906

Balance as at September 30,










 2013 (Unaudited)

10


573,633


3,748


(25,191)


552,200











For the three months ended










 September 30, 2014 (Unaudited)









Balance as at










 July 1, 2014 (Unaudited)

11


642,199


3,748


(39,216)


752

Profit for the period

-


-


-


83,752


83,769

Balance as at September 30,










 2014 (Unaudited)

11


642,199


3,748


44,536


690,494











For the three months ended










 September 30, 2013 (Unaudited)









Balance as at










 July 1, 2013 (Unaudited)

8


503,137


3,748


(18,598)


488,295

Loss for the period

-


-


-


(6,593)


(6,593)

Issuance of shares

2


70,496


-


-


70,498

Balance as at September 30,










 2013 (Unaudited)

10


573,633


3,748


(25,191)


552,200











For the year ended










 December 31, 2013 (Audited)










Balance as at










January 1, 2013 (Audited)

6


373,731


3,748


(8,333)


369,152

Loss for the year

-


-


-


(23,693)


(23,693)

Issuance of ordinary shares

5


268,468


-


-


268,473

Balance as at December 31,










 2013 (Audited)

11


642,199


3,748


(32,026)


613,932

 

Dorad Energy Ltd.

Condensed Interim Statement of Cash Flows



For the nine months ended


For the three months ended


Year ended


September 30


September 30


December 31


2014


2013


2014


2013


2013


(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)


(Audited)


NIS thousands


NIS thousands


NIS thousands


NIS thousands


NIS thousands

Cash flows from operating
activities:










Profit (loss) for the period

76,562


(16,858)


83,752


(6,593)


(23,693)











Adjustments:










Depreciation and amortization

73,871


-


50,201


-


-

Taxes on income

171,815


-


28,637


-


-

Compensation for customers

5,771


5,000


-


3,750


7,813

Financing expenses, net

78,924


11,858


47,737


2,843


15,880


176,381


16,858


126,576


6,593


23,693











 Change in trade receivables

(247,610)


-


(80,297)


-


-

 Change in other receivables

(20,265)


-


(51,380)


-


-

 Change in trade payables and

335,273




224,146





 other accounts payable



-




-


-

 Change in employee benefits, net

5


-


-


-


-


67,403


-


92,469


-


-

 Net cash flows used in










 operating activities

320,346


-


302,797


-


-











Net cash flows used in










 investing activities










Payments of settlement of










 financial derivatives

10,134


(57,440)


21,801


(15,807)


(83,496)

Repayment of pledged deposit

44,627


72,554


14,345


29,527


89,263

Investment in pledged deposit

(33,716)


-


-


-


-

Long-term prepaid expenses

-


(11,690)


-


(11,690)


(11,690)

Investment in fixed assets

(207,469)


(623,094)


(64,700)


(245,533)


(782,557)

Investment in intangible assets

(1,705)


(2,686)


(189)


(487)


(4,018)

Interest received

155


-


100


-


-

Net Cash flows used in










 investing activities

(187,974)


(622,356)


(28,643)


(243,990)


(792,498)











Cash flows from financing










 activities:










Receipt of long-term loans










 from related parties

60,491


84,953


8,606


33,593


110,806

Receipt of loans from banks

174,764


529,059


57,547


199,848


676,882

Interest paid

(922)


-


(500)


-


-

Net cash flows provided by










 financing activities

234,334


614,012


62,654


233,441


787,688

Effect of exchange rate










 fluctuations on cash and cash










 equivalents

736


-


690


-


-

Net increase (decrease) in 










 cash and cash equivalents for










 the period

366,706


(8,344)


339,807


(10,549)


(4,810)

Cash and cash equivalents at










 beginning of period

4,199


9,009


31,144


11,214


9,009

Cash and cash equivalents at










 end of period

371,641


665


371,641


665


4,199

 

SOURCE Ellomay Capital Ltd.



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