EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1 exhibit_99-1.htm


Exhibit 99.1
 
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.

Tel-Aviv, Israel, August 24, 2015 – 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