Business Context and Reporting Period
This Form 6-K filing by Ellomay Capital Ltd. covers the month of November 2018. The report details a significant development regarding the Manara Project, a 156 MW pumped hydro storage plant located at Manara Cliff, Israel. Ellomay Capital indirectly owns 75% of Ellomay Pumped Storage (2014) Ltd., the entity advancing the project.
Key Financial Metrics
The filing does not provide specific financial statements, revenue, profit, cash flow, margins, debt, or liquidity metrics for the reporting period. The only financial figure disclosed is the estimated contract price for the Manara Project.
- Estimated EPC Contract Price: Approximately $300 million (subject to an indexation mechanism).
Material Changes
The primary material event is the execution of a Letter of Appointment between Ellomay Pumped Storage (2014) Ltd. and two subsidiaries of Electra Ltd. (collectively "Electra").
- Contractor Appointment: Electra has been appointed on an exclusive basis as the main contractor for the Manara Project.
- Next Steps: The parties are committed to negotiating in good faith to finalize an Engineering, Procurement and Construction (EPC) Contract.
- Timeline: The Letter is effective until September 30, 2019, subject to earlier termination.
Guidance, Outlook, and Risks
Management estimates that the financial closing for the Manara Project will occur during the first quarter of 2019. However, the execution of the final EPC Contract and the project's financial closing are subject to several contingencies:
- Resolution of open commercial issues.
- Receipt of requisite corporate approvals.
- Approval by the financing entity.
- Obtaining necessary regulatory approvals and permits.
Risk Warning: The filing explicitly states there is no assurance that the parties will reach a final EPC agreement, that the project will obtain financing on acceptable terms, or that financing will be obtained at all. The report contains forward-looking statements that involve substantial risks and uncertainties.
Investor Verification Checklist
- Confirm the status of negotiations for the final EPC Contract between Ellomay and Electra.
- Verify the timeline and conditions for the financial closing of the Manara Project (targeted Q1 2019).
- Monitor the receipt of regulatory approvals and permits required for construction.
- Review the terms of the indexation mechanism affecting the $300 million contract price.
- Assess the risk of the Letter of Appointment expiring on September 30, 2019, without a finalized contract.