Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three Months Ended June 30, 2015

Ellomay Capital Indirectly Holds Approximately 9.2% of Dorad Energy Ltd.

Aug 24, 2015, 02:00 ET from Ellomay Capital Ltd.

TEL-AVIV, Israel, Aug. 24, 2015 /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 for the three months ended June 30, 2015 of Dorad Energy Ltd. ("Dorad"), in which Ellomay indirectly holds approximately 9.2%.

On August 18, 2015, U. Dori Group Ltd. (the "Dori Group"), an Israeli public company that holds 51% 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 for the same period. Dorad's power plant commenced operations during May 2014, and therefore the results for the period present the first results for the operations of the power plant during the second financial quarter.

The financial results of Dori Energy and of Dorad for the quarter ended June 30, 2015 were prepared in accordance with International Financial Reporting Standards. Ellomay will include its share of these results in its financial results for this period. 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 June 30, 2015 - approximately NIS 488 million (or approximately USD 129 million, based on the exchange rate on June 30, 2015).
  • Dorad's unaudited operating profit for the quarter ended June 30, 2015 - approximately NIS 28 million (or approximately USD 7 million, based on the exchange rate on June 30, 2015).

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, which include the intermediate months of April, May and June, are not indicative of full year results.

On August 8, 2015, the Israeli Public Utilities Authority – Electricity published a decision decreasing the electricity rates and establishing the rate in respect of "system costs". Dorad informed the Company that it is it is studying the implications of the decision and is considering its next steps in the matter.

Ran Fridrich, CEO and a board member of Ellomay commented: "Dorad's financial results for the second quarter were as expected for an intermediate quarter (with relatively lower demand and electricity rates. An increase of 1.1% in the Israeli Consumer Price Index during the quarter caused an unusual increase in the financing expenses. Dorad has a bank debt linked to the Israeli CPI in an aggregate amount of approximately NIS 3.6 billion."

A translation of the financial results for Dorad as of and for the year ended December 31, 2014 and as of and for the six and three month periods ended June 30, 2014 and 2015 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" and whose Series A Debentures are traded on the Tel Aviv Stock Exchange.  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 6.9MW of photovoltaic power plants in Spain; and
  • Approximately 9.2% indirect interest, with an option to increase its holdings to 9.375%, in Dorad Energy Ltd., which owns and operates Israel's largest private power plant with production capacity of approximately 850 MW, representing about 6%-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, 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.

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

 

Dorad Energy Ltd.

Interim Condensed Statement of Financial Position








June 30

June 30

December 31



2015

2014

2014



(Unaudited)

(Unaudited)

(Audited)



NIS thousands

NIS thousands

NIS thousands






Current assets





Cash and cash equivalents


216,255

31,144

71,778

Trade receivables


218,582

167,363

328,438

Other receivables


8,778

15,330

11,118

Pledged deposit


29,483

82,391

68,148

Financial derivatives


-

-

11,090

Total current assets


473,098

296,228

490,572






Non-current assets





Restricted deposit


270,067

-

200,027

Prepaid expenses


47,921

49,928

48,925

Deferred tax asset


-

10,822

-

Fixed assets, net


4,489,947

4,496,275

4,588,356

Intangible assets, net


7,930

8,956

8,577

Total non-current assets


4,815,865

4,565,981

4,845,885






Total assets


5,288,963

4,862,209

5,336,457






Current liabilities





Financial derivatives


3,364

7

-

Current maturities of loans from banks


169,186

305,058

122,358

Current maturities of loans from related  parties


130,000

-

-

Trade payables


391,510

-

376,515

Other payables


63,238

528,929

443,458

Total current liabilities


757,298

833,994

942,331






Non-current liabilities





Loans from banks


3,397,036

2,957,132

3,186,412

Loans from related parties


374,862

436,098

462,244

Provision for dismantling and restoration


28,835

28,182

28,507

Deferred tax liabilities


27,456

-

23,275

Liabilities for employee benefits, net


114

62

105

Total non-current liabilities


3,828,303

3,421,474

3,700,543






Equity





Share capital


11

11

11

Share premium


642,199

642,199

642,199

Capital reserve from activities with controlling shareholders


3,748

3,748

3,748

Retained earnings (losses)


57,404

(39,217)

47,625

Total equity


703,362

606,741

693,583






Total liabilities and equity


5,288,963

4,862,209

5,336,457

 

 

Dorad Energy Ltd.

Interim Condensed Statement of Profit or Loss






For the six months ended

For the three months ended

Year ended


June 30

June 30

December 31


2015

2014

2015

2014

2014


(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)


NIS thousands

NIS thousands

NIS thousands

NIS thousands

NIS thousands







Revenues

1,167,328

208,473

488,092

208,473

1,484,176







Operating costs of the Power






Plant












Energy costs

296,178

55,988

138,857

55,988

343,647

Electricity purchase and






infrastructure services

568,586

94,696

233,900

94,696

690,827

Depreciation and amortization

105,204

23,589

52,794

23,589

124,339

Other operating costs

66,825

13,533

30,055

13,533

92,618







Total cost of Power Plant

1,036,793

187,806

455,606

187,806

1,251,431







Profit from operating the






Power Plant

130,535

20,667

32,486

20,667

232,745







General and administrative






expenses

(12,805)

(1,723)

(4,814)

(1,723)

(14,022)

Other expenses

-

(5,771)

-

(2,021)

(5,771)


(12,805)

(7,494)

(4,814)

(3,744)

(19,793)







Operating profit

117,730

13,173

27,672

16,923

212,952







Financing income

4,013

1,353

(2,314)

(62)

46,964

Financing expenses

(107,783)

(32,539)

(100,937)

(32,539)

(156,990)







Financing income (expenses),






net

(103,770)

(31,186)

(103,251)

(32,601)

(110,026)







Profit (loss) before taxes on






income

13,960

(18,013)

(75,579)

(15,678)

102,926







Taxes on income

(4,181)

10,822

20,028

10,822

(23,275)







Profit (loss) for the period

9,779

(7,191)

(55,551)

(4,856)

79,651

 

Dorad Energy Ltd.

Interim Condensed Statement of Changes in 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 Six months






 ended June 30, 2015






 (Unaudited)












Balance as at






 January 1, 2015

11

642,199

3,748

47,625

693,583







Profit for the period

-

-

-

9,779

9,779







Balance as at






June 30, 2015






 (Unaudited)

11

642,199

3,748

57,404

703,362

For the Six months






 ended June 30, 2014






 (Unaudited)












Balance as at






 January 1, 2014

11

642,199

3,748

(32,026)

613,932







Loss for the period

-

-

-

(7,191)

(7,191)







Balance as at






June 30, 2014






 (Unaudited)

11

642,199

3,748

(39,217)

606,741

For the three months






 ended June 30, 2015






 (Unaudited)












Balance as at






April 1, 2015

11

642,199

3,748

112,955

758,913







Loss for the period

-

-

-

(55,551)

(55,551)







Balance as at






June 30, 2015






 (Unaudited)

11

642,199

3,748

57,404

703,362

 

 

Dorad Energy Ltd.

Interim Condensed Statement of Changes in Equity (cont'd)










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 three months






 ended June 30, 2014






 (Unaudited)












Balance as at






April 1, 2014

11

642,199

3,748

(34,361)

611,597







Loss for the period

-

-

-

(4,856)

(4,856)







Balance as at






June 30, 2014






 (Unaudited)

11

642,199

3,748

(39,217)

606,741

For the year ended






 December 31, 2014












Balance as at






 January 1, 2014

11

642,199

3,748

(32,026)

613,932







Profit for the year

-

-

-

79,651

79,651







Balance as at






 December 31, 2014

11

642,199

3,748

47,625

693,583

 

 

Dorad Energy Ltd.

Interim Condensed Statements of Cash Flows






For the six months ended

For the three months ended

Year ended


June 30

June 30

December 31


2015

2014

2015

2014

2014


(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

9,779

(7,191)

(55,551)

(4,856)

79,651

Adjustments:






Compensation for customers

-

5,771

-

2,021

-

Depreciation and amortization

105,556

23,670

52,973

23,670

124,764

Taxes on income

4,181

(10,822)

(20,028)

(10,822)

23,275

Financing expenses, net

103,770

31,186

103,251

32,601

110,026


213,507

49,805

136,196

47,470

258,065







Change in trade receivables

110,093

(167,313)

123,729

(167,313)

(328,438)

Change in other receivables

2,340

31,115

10,382

31,115

(10,886)

Change in trade payables

14,994

-

(184,612)

-

376,515

Change in other payables

20,696

111,128

14,333

111,128

(3,909)

Change in employee benefits,






 net

8

5

8

5

49


148,131

(25,065)

(36,160)

(25,065)

33,331

Net cash flows provided by






operating activities

371,417

17,549

44,485

17,549

371,047

Net cash flows used in






 investing activities






Proceeds from (payment for)






 settlement of financial






 derivatives

10,024

(11,667)

2,718

(6,802)

27,679

Payment of pledged deposit

38,679

30,282

-

10,724

44,627

Investment in pledged deposit

-

(33,716)

-

-

(33,716)

Investment in long-term






 restricted deposit

(70,000)

-

-

-

(200,000)

Investment in fixed assets

(402,358)

(142,769)

(21,477)

(89,941)

(267,824)

Investment in intangible assets

(328)

(1,516)

(100)

(1,093)

(2,086)

Interest received

86

55

13

55

275

Net cash flows used in






 investing activities

(423,897)

(159,331)

(18,846)

(87,057)

(431,045)

Cash flows from financing






 activities:






Receipt of long-term loans from






 related parties

23,208

51,886

-

6,435

60,491

Receipt of long-term loans from






 banks

318,100

117,217

-

38,587

174,764

Repayment of loans

(44,495)

-

(44,495)

-

(12,791)

Interest paid

(99,815)

(422)

(99,746)

(422)

(96,031)

Net cash flows provided by






 financing activities

196,998

168,681

(144,241)

44,600

126,433

Net increase in cash and cash






 equivalents for the period

144,518

26,899

(118,602)

(24,908)

66,435

Effect of exchange rate






 fluctuations on cash and cash






 equivalents

(41)

46

285

46

1,144

Cash and cash equivalents at






 beginning of period

71,778

4,199

334,572

56,006

4,199

Cash and cash equivalents at






 end of period

216,255

31,144

216,255

31,144

71,778

 

 

SOURCE Ellomay Capital Ltd.



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