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

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

Dec 01, 2015, 09:00 ET from Ellomay Capital Ltd.

TEL-AVIV, Israel, Dec. 1, 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 September 30, 2015 of Dorad Energy Ltd. ("Dorad"), in which Ellomay indirectly holds approximately 9.2%.

On November 30, 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.

The financial results of Dori Energy and of Dorad for the quarter ended September 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, which are currently expected to be published on or about December 23, 2015. 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, 2015 - approximately NIS 673 million (or approximately USD 172 million, based on the exchange rate on September 30, 2015).
  • Dorad's unaudited operating profit for the quarter ended September 30, 2015 - approximately NIS 110 million (or approximately USD 28 million, based on the exchange rate on September 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 summer months of July and August and the part of the intermediate months (September), are not indicative of full year results.

A translation of the financial results for Dorad as of and for the three month periods ended September 30, 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 7.9MW 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, seasonality of the PV business, technical and other disruptions in the operations of the power plant operated by Dorad and market conditions. 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




September 30

September 30

December 31



2015

2014

2014



(Unaudited)

(Unaudited)

(Audited)



NIS thousands

NIS thousands

NIS thousands

Current assets





Cash and cash equivalents


423,144

371,641

71,778

Accounts receivable


319,863

247,663

328,438

Other accounts receivable


19,312

20,496

11,118

Pledged deposit


29,484

68,124

68,148

Financial derivatives


-

4,179

11,090

Total current assets


791,803

712,103

490,572






Non-current assets





Restricted deposit


270,074

-

200,027

Prepaid expenses


47,420

49,426

48,925

Fixed assets


4,427,658

4,471,253

4,588,356

Intangible assets


8,100

8,677

8,577

Total non-current assets


4,753,252

4,529,356

4,845,885






Total assets


5,545,055

5,241,459

5,336,457






Current liabilities





Financial derivatives


768

-

-

Current maturities of loans from banks


214,713

311,300

122,358

Current maturity of loans from related parties


130,000

-

-

Trade payables


555,979

675,598

376,515

Other payables


45,310

-

443,458

Total current liabilities


946,770

986,898

942,331






Non-current liabilities





Loans from banks


3,409,930

3,063,207

3,186,412

Loans from related parties


387,888

454,642

462,244

Provision for dismantling and restoration


29,001

28,341

28,507

Deferred tax liabilities


38,197

17,815

23,275

Liabilities for employee benefits


114

62

105

Total non-current liabilities


3,865,130

3,564,067

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


87,197

44,536

47,625

Total equity


733,155

690,494

693,583






Total liabilities and equity


5,545,055

5,241,459

5,336,457

 

 

Dorad Energy Ltd.

Interim Condensed Statement of Earnings



For the nine months ended

For the three months ended

Year ended


September 30

September 30

December 31


2015

2014

2015

2014

2014


(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)


NIS thousands

NIS thousands

NIS thousands

NIS thousands

NIS thousands







Revenues

1,840,706

901,178

673,378

692,705

1,484,176







Operating costs of the power






 plant






Energy costs

482,598

196,258

186,420

140,269

343,647

Electricity purchase and






 infrastructure services

841,539

394,909

272,953

300,213

690,827

Depreciation and amortization

158,364

73,618

53,160

50,029

124,339

Other operating costs

112,980

49,264

46,155

35,732

92,618







Total cost of power plant

1,595,481

714,049

558,688

526,243

1,251,431







Profit from operating the






 power plant

245,225

187,129

114,690

166,462

232,745







General & Administrative






 expenses

(17,084)

(8,057)

(4,279)

(6,334)

(14,022)

Other expenses

-

(5,771)

-

-

(5,771)


(17,084)

(13,828)

(4,279)

(6,334)

(19,793)







Operating profit for






 the period

228,141

173,301

110,411

160,128

212,952







Financing income

3,415

22,414

(598)

21,060

46,964

Financing expenses

(177,062)

(101,338)

(69,279)

(68,799)

(156,990)

Financing expenses, net

(173,647)

(78,924)

(69,877)

(47,739)

(110,026)







Profit before taxes on income

54,494

94,377

40,534

112,389

102,926







Taxes on income

(14,922)

(17,815)

(10,741)

(28,637)

(23,275)







Profit for the period

39,572

76,562

29,793

83,752

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 nine months ended






 September 30, 2015 (Unaudited)





Balance as at






 January 1, 2015

11

642,199

3,748

47,625

693,583

Profit for the period

-

-

-

39,572

39,572

Balance as at September 30,






2015

11

642,199

3,748

87,197

733,155







For the nine months ended






 September 30, 2014 (Unaudited)





Balance as at






 January 1, 2014

11

642,199

3,748

(32,026)

613,932

Profit for the period

-

-

-

76,562

76,562

Balance as at September 30,






2014

11

642,199

3,748

44,536

690,494







For the three months ended






 September 30, 2015 (Unaudited)





Balance as at






 July 1, 2015

11

642,199

3,748

57,404

703,362

Profit for the period

-

-

-

29,793

29,793

Balance as at September 30,






2015

11

642,199

3,748

87,197

733,155







For the three months ended






 September 30, 2014 (Unaudited)





Balance as at






 July 1, 2014

11

642,199

3,748

(39,216)

606,742

Profit for the period

-

-

-

83,752

83,752

Balance as at September 30,






2014

11

642,199

3,748

44,536

690,494







For the year ended






 December 31, 2014 (Audited)






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 nine months ended

For the three months ended

Year ended


September 30

September 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 for the period

39,572

76,562

29,793

83,752

79,651







Adjustments:






Depreciation and amortization

179,190

73,871

73,634

50,201

124,764

Taxes on income

14,922

17,815

10,741

28,637

23,275

Compensation for customers

-

5,771

-

-

-

Financing expenses, net

173,647

78,924

69,878

47,739

110,026


367,759

176,381

154,253

126,577

258,065







 Change in trade receivables

8,811

(247,610)

(101,282)

(80,297)

(328,438)

 Change in other receivables

(8,194)

(20,265)

(10,534)

(51,380)

(10,886)

 Change in trade payables

179,464

335,273

164,470

224,144

376,515

 Change in other accounts payable

4,892

-

(15,804)

-

(3,909)

 Change in employee benefits, net

8

5

-

-

49


184,981

67,403

36,850

92,467

33,331

 Net cash flows used in






 operating activities

592,312

320,346

220,896

302,796

371,047







Net cash flows used in






 investing activities






Receipt of settlement






 of financial derivatives

10,651

10,134

626

21,801

27,679

Payment of pledged deposit

38,679

44,627

-

14,345

44,627

Investment in pledged deposit

-

(33,716)

-

-

(33,716)

Investment in long-term restricted






 deposit

(70,000)

-

-

-

(200,000)

Investment in fixed assets

(414,269)

(207,469)

(11,911)

(64,700)

(267,824)

Investment in intangible assets

(987)

(1,705)

(659)

(189)

(2,086)

Interest received

100

155

14

100

275

Net Cash flows used in






 investing activities

(435,826)

(187,974)

(11,930)

(28,643)

(431,045)







Cash flows from financing






 activities:






Receipt of long-term loans






 from related parties

23,208

60,491

-

8,606

60,491

Receipt of long-term loans from banks

318,100

174,764

-

57,547

174,764

Repayment of loans

(44,495)

-

-

-

(12,791)

Interest paid

(100,753)

(922)

(938)

(500)

(96,031)

Net cash flows provided by






 financing activities

196,060

234,333

(938)

65,653

126,433

Effect of exchange rate






 fluctuations on cash and cash






 equivalents

(1,180)

737

(1,196)

691

1,144

Net increase (decrease) in 






 cash and cash equivalents for






 the period

351,366

367,442

206,832

340,497

67,579

Cash and cash equivalents at






 beginning of period

71,778

4,199

216,312

31,144

4,199

Cash and cash equivalents at






 end of period

423,144

371,641

423,144

371,641

71,778

 

SOURCE Ellomay Capital Ltd.



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