Ellomay Capital Reports Publication of Financial Statements of Dorad Energy Ltd. for the Three and Nine Month Periods Ended September 30, 2021
11/24/2021 - 04:45 PM
TEL-AVIV, Israel , Nov. 24, 2021 /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, 2021 of Dorad Energy Ltd. ("Dorad "), in which Ellomay currently indirectly holds approximately 9.4% through its indirect 50% ownership of U. Dori Energy Infrastructures Ltd. ("Dori Energy ").
On November 23, 2021 , Amos Luzon Entrepreneurship and Energy Group Ltd. (f/k/a U. Dori Group Ltd.) (the "Luzon Group "), an Israeli public company that currently holds the remaining 50% of 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, 2021 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. 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, 2021 - approximately NIS 642.4 million . Dorad's unaudited operating profit for the three months ended September 30, 2021 - approximately NIS 130 million . Dorad's financial statements for the three and nine months ended September 30, 2021 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 throughout this period and up to the reporting date it operated in compliance with, and according to, with the guidelines of the Israeli Ministries of Energy and Health on dealing with the coronavirus epidemic, 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, which moderated during the period of the financial statements, in the electricity consumption of various customers, and there is also a certain decrease in the demand of the Israel Electric Company, and accordingly such reduction has not resulted in a material adverse effect at this time. Dorad notes that it is monitoring the re-spread of the virus and continuously examines its potential options for handling the impact to its income.
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, 2021 , which include the summer months of July and August and the intermediate month of September, 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 third quarter results in the future.
A translation of the financial results for Dorad as of and for the year ended December 31, 2020 and as of and for the three and nine month periods ended September 30, 2020 and 2021 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 Luzon 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 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 owns a photovoltaic plant with a peak capacity of 300MW in the municipality of Talaván, Cáceres, Spain ; Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas Gelderland B.V., project companies operating anaerobic digestion plants in the Netherlands , with a green gas production capacity of approximately 3 million, 3.8 million and 9.5 million (with a license to produce 7.5 million) Nm3 per year, respectively; and 83.333% of Ellomay Pumped Storage (2014) Ltd., which is involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel .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 Rubenbach (Weintraub) CFO Tel: +972 (3) 797-1111 Email: hilai@ellomay.com
Dorad Energy Ltd.
Interim Condensed Statement of Financial Position
September 30
September 30
December 31
* 2021
2020
2020
(Unaudited)
(Unaudited)
(Audited)
NIS thousands
NIS thousands
NIS thousands
Current assets
Cash and cash equivalents
328,707
418,733
247,079
Trade receivables and accrued income
277,663
218,858
297,719
Other receivables
Financial derivatives
9,175
1,354
8,448
-
21,401
-
Total current assets
616,899
646,039
566,199
Non-current assets
Restricted deposit
472,111
446,966
433,265
Prepaid expenses
33,734
35,729
35,230
Fixed assets
3,403,321
3,557,177
3,526,839
Intangible assets
5,907
5,528
5,402
Right of use assets
58,383
60,985
60,113
Total non-current assets
3,973,456
4,106,385
4,060,849
Total assets
4,590,355
4,752,424
4,627,048
Current liabilities
Current maturities of loans from banks
311,173
272,762
242,098
Current maturities of lease liabilities
4,614
3,039
4,535
Trade payables
300,591
262,785
309,380
Other payables
32,514
25,297
3,808
Financial derivatives
-
515
2,993
Total current liabilities
648,892
564,398
562,814
Non-current liabilities
Loans from banks
2,467,410
2,669,511
2,561,302
Long-term lease liabilities
52,563
55,929
50,858
Provision for dismantling and restoration
50,000
50,058
50,000
Deferred tax liabilities
212,463
202,706
200,298
Others Long-term liabilities
16,517
-
-
Liabilities for employee benefits, net
160
160
160
Total non-current liabilities
2,799,113
2,978,364
2,862,618
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
496,392
563,704
555,658
Total equity
1,142,350
1,209,662
1,201,616
Total liabilities and equity
4,590,355
4,752,424
4,627,048
Condensed Interim Statement of Income
For the nine months ended
For the three months ended
Year ended
September 30
September 30
December 31
2021
2020
2021
2020
2020
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
NIS thousands
NIS thousands
NIS thousands
NIS thousands
NIS thousands
Revenues
1,605,482
1,884,621
642,381
697,061
2,407,221
Operating costs of the
Power Plant
Energy costs
328,866
417,892
149,644
143,458
522,110
Electricity purchase and
infrastructure services
779,493
922,584
268,375
332,330
1,185,225
Depreciation and
amortization
169,151
179,889
56,436
72,833
237,575
Other operating costs
105,328
111,671
37,911
35,729
155,368
Total operating costs
of Power Plant
1,382,838
1,632,036
512,366
584,350
2,100,278
Profit from operating
the Power Plant
222,644
252,585
130,015
112,711
306,943
General and
administrative expenses
17,715
19,011
5,359
5,590
24,926
Other incomes
8,809
-
2,877
-
1,279
Operating profit
213,738
233,574
127,533
107,121
283,296
Financing income
1,215
2,479
400
635
3,056
Financing expenses
162,054
96,675
60,946
40,294
157,428
Financing expenses, net
160,839
94,196
60,546
39,659
154,372
Profit before
taxes on income
52,899
139,378
66,987
67,462
128,924
Taxes on income
12,165
32,030
15,388
15,497
29,622
Profit for the period
40,734
107,348
51,599
51,965
99,302
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, 2021
(Unaudited)
Balance as at
January 1, 2021 (Audited)
11
642,199
3,748
555,658
1,201,616
Dividend to the Company's
-
-
-
(100,000)
(100,000)
Shareholders
Profit for the period
-
-
-
40,734
40,734
Balance as at
September 30, 2021 (Unaudited)
11
642,199
3,748
496,392
1,142,350
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
Dividend to the Company's
-
-
-
(120,000)
(120,000)
Shareholders
Profit for the period
-
-
-
107,348
107,348
Balance as at
September 30, 2020 (Unaudited)
11
642,199
3,748
563,704
1,209,662
For the three months
ended September 30, 2021
(Unaudited)
Balance as at
July 1, 2021 (Unaudited)
11
642,199
3,748
444,793
1,090,751
Profit for the period
-
-
-
51,599
51,599
Balance as at
September 30, 2021 (Unaudited)
11
642,199
3,748
496,392
1,142,350
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 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 year ended
December 31, 2020 (Audited)
Balance as at
11
642,199
3,748
576,356
1,222,314
January 1, 2020 (Audited)
Dividend to the Company's shareholders
-
-
-
(120,000)
(120,000)
Profit for the year
-
-
-
99,302
99,302
Balance as at
December 31, 2020 (Audited)
11
642,199
3,748
555,658
1,201,616
Dorad Energy Ltd.
Condensed Interim Statements of Cash Flows
For the nine months ended
For the three months ended
Year ended
September 30
September 30
December 31
2021
2020
2021
2020
2020
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Audited)
NIS thousands
NIS thousands
NIS thousands
NIS thousands
NIS thousands
Cash flows from
operating activities:
Profit for the period
40,734
107,348
51,599
51,965
99,302
Adjustments:
Depreciation and amortization
and fuel consumption
171,174
182,508
56,726
73,127
241,288
Taxes on income
12,165
32,030
15,388
15,497
29,622
Financing expenses, net
160,839
94,196
60,546
39,659
154,372
344,178
308,734
132,660
128,283
425,282
Change in trade receivables
20,056
73,901
(70,626)
(7,465)
(4,959)
Change in other receivables
12,226
14,234
8,076
6,576
1,284
Change in trade payables
(9,825)
(26,120)
33,298
26,227
16,627
Change in other long-term liabilities
16,517
-
16,517
-
-
Change in other payables
28,706
14,791
29,735
22,629
(6,700)
67,680
76,806
17,000
47,967
6,252
Net cash flows provided
by operating activities
452,592
492,888
201,259
228,215
530,836
Cash flows used in
investing activities
Proceeds (payment) for settlement of
financial derivatives
987
(696)
(477)
(817)
(4,318)
Investment in long-term
restricted deposit
(37,000)
(6,000)
-
-
(6,000)
Investment in fixed assets
(42,277)
(21,853)
(9,225)
(14,135)
(48,309)
Investment in intangible assets
(1,536)
(4,367)
(507)
(2,557)
(4,738)
Interest received
1,225
2,473
399
633
3,046
Net cash flows used in
investing activities
(78,601)
(30,443)
(9,810)
(16,876)
(60,319)
Cash flows from
financing activities:
Repayment of lease liability principal
(443)
(441)
(147)
(147)
(4,523)
Repayment of loans from banks
(109,156)
(102,653)
-
-
(195,359)
Dividends and exchange rate
paid (see note 4.d)
(100,000)
(123,739)
-
-
(123,739)
Interest paid
(82,544)
(86,680)
(645)
(151)
(170,003)
Net cash flows used in
financing activities
(292,143)
(313,513)
(792)
(298)
(493,624)
Net increase in cash
and cash equivalents for
the period
81,848
148,932
190,657
211,041
(23,107)
Effect of exchange rate fluctuations
on cash and cash equivalents
(220)
3,780
(2,017)
(170)
4,165
Cash and cash equivalents at
beginning of period
247,079
266,021
140,067
207,862
266,021
Cash and cash equivalents at end
of period
328,707
418,733
328,707
418,733
247,079
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SOURCE Ellomay Capital Ltd.