Ellomay Capital Ltd. (Nasdaq: ELLO) Fails to Re-Evaluate Networth

Tel Aviv, Israel, February 25, 2016 (Newswire.com) - Ellomay Capital Ltd. (Nasdaq: ELLO) fails to re-evaluate networth despite significant reduction in electricity rates

Although affected by two major electricity rate reductions, Ellumay did not perform a re-evaluation of its total assets networth, Calcalist reports today

Calcalist, Israel's leading financial daily, reports today that local energy companies, among them specifically noted Rapac, have had to perform a significant reduction (close to 30% in most cases) in their assets' worth caused as a direct result of two major reduction of electricity rates initiated by the Israeli electricity authority, the entity responsible for energy price rates in Israel.

Unlike its peers in Rapac, Ellumay Capital (Nasdaq: ELLO) has presented a completely different picture in its quarterly reports. According to Golan Hazani, Calcalist's financial specialist, Rapac has performed a significant reduction in power plants' real worth an estimated 28% of its networth consequently of the rates reduction, translated roughly into 39 million nis, out of a total worth of 140 million nis.

Compared with that, In Ellumay's quarterly reports there is not even a mention of an affect by the rates reduction on fair value. According to Calcalist, Dorad – a private power plant, constitutes 70% of Ellumay's total assets. And still, calcalist reports, the last mentioning of the subject was in the second quarter report which stated that the company was "studying the matter" of revenues that may be influenced by the rate reduction.   

Electricity rates decrease has most probably caused a significant decrease in expected revenues flow from Dorad, consequently causing loses which leads to re-evaluation of worth in holdings in Ellumay, owned by Shlomo Nehama and Ran Friedrich. However, as mentioned in Calcalist, total networth reported by Ellumay remains unchanged.