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



Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three Months
Ended September 30, 2016
 
Israeli Electricity Authority Schedules a Hearing concerning Additional Reduction of the Electricity Tariff
 
Tel-Aviv, Israel, November 30, 2016 – Ellomay Capital Ltd. (NYSE MKT; TASE: ELLO) (“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, 2016 of Dorad Energy Ltd. (“Dorad”), in which Ellomay currently indirectly holds approximately 9.4%.

On November 30, 2016, Amos Luzon Entrepreneurship and Energy Group Ltd. (f/k/a U. Dori Group Ltd.) (the “Luzon Group”), an Israeli public company that currently holds 50% of U. Dori Energy Infrastructures Ltd. (“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 results of Dori Energy and of Dorad for the quarter ended September 30, 2016 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 Dorad’s financial results.

Dorad’s financial statements include a reference to a hearing scheduled for December 2016 by the Israeli Public Utilities Authority – Electricity (the “Electricity Authority”) concerning possible changes in tariffs, including possible reductions in the electricity production tariff. The Electricity production tariff is used by Dorad as the basis for the price charged for the electricity it provides and is the basis for changes in the price of natural gas purchased by Dorad and used by it for the production of energy. Subject to the outcome of this hearing, the Electricity Authority may reduce the electricity production tariff by 8%. As previously published, the natural gas price paid by Dorad to its natural gas supplier has already reached its minimum price in accordance with the gas supply agreement executed by Doard and will therefore not be further reduced following the potential reduction in the electricity production tariff. Dorad states in its financial statements that it believes the reduction of the electricity production tariff will have a material adverse impact on its cash flows, its profits and on its coverage ratios and that from the beginning of 2017 it may not be able to meet the coverage ratios determined by its lenders for distributions to its shareholders. However, Dorad emphasizes in the financial statements that it does not anticipate that it will fail to meet the required coverage ratios in a manner that will constitute a default under its agreements with its lenders.

Dorad Financial Highlights
 
·
Dorad’s unaudited revenues for the three months ended September 30, 2016 - approximately NIS 613 million (or approximately USD 163 million, based on the exchange rate on September 30, 2016).
 
·
Dorad’s unaudited operating profit for the three months ended September 30, 2016 - approximately NIS 114 million (or approximately USD 30 million, based on the exchange rate on September 30, 2016).

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 and intermediate months of July to September are not indicative of full year results.

A translation of the financial results for Dorad as of and for the year ended December 31, 2015 and as of and for the nine and three month periods ended September 30, 2015 and 2016 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 Amos Luzon Entrepreneurship and Energy Group Ltd., 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 and with the Tel Aviv Stock Exchange under the trading symbol “ELLO”. 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;
·
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 850 MW, representing about 6%-8% of Israel’s total current electricity consumption; and
·
75% of Chashgal Elyon Ltd., Agira Sheuva Electra, L.P. and Ellomay Pumped Storage (2014) Ltd., all of which are involved in a project to construct a 340 MW pumped storage hydro power plant in the Manara Cliff, Israel.

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. Ellomay believes 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.
Condensed Interim Statement of Financial Position as at

   
September 30
    
September 30
    
December 31
  
   
2016
    
2015
    
2015
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
  
Current assets
                  
Cash and cash equivalents
    
215,072
      
423,144
      
51,894
  
Trade receivables
    
227,405
      
319,863
      
278,982
  
Other receivables
    
17,615
      
19,312
      
31,994
  
Pledged deposit
    
-
      
29,484
      
29,485
  
Financial derivatives
    
-
      
-
      
646
  
Total current assets
    
460,092
      
791,803
      
393,001
  
                         
Non-current assets
                        
Restricted deposit
    
408,043
      
270,074
      
335,085
  
Prepaid expenses
    
45,502
      
47,420
      
46,918
  
Fixed asset
    
4,231,913
      
4,427,658
      
4,386,971
  
Intangible assets
    
8,297
      
8,100
      
8,391
  
Total non-current assets
    
4,693,755
      
4,753,252
      
4,777,365
  
                         
Total assets
    
5,153,847
      
5,545,055
      
5,170,366
  
                         
Current liabilities
                        
Current maturities of loans from banks
    
234,680
      
214,713
      
170,722
  
Current maturity of loans from related parties
    
70,000
      
130,000
      
130,000
  
Trade payables
    
267,688
      
555,979
      
247,129
  
Other payables
    
10,818
      
45,310
      
16,906
  
Financial derivatives
    
1,574
      
768
      
-
  
Total current liabilities
    
584,760
      
946,770
      
564,757
  
                         
Non-current liabilities
                        
Loans from banks
    
3,464,531
      
3,409,930
      
3,316,740
  
Loans from related parties
    
156,946
      
387,888
      
396,259
  
Provision for dismantling and restoration
    
35,567
      
29,001
      
35,170
  
Deferred tax liabilities, net
    
71,102
      
38,197
      
60,882
  
Liabilities for employee benefits, net
    
160
      
114
      
160
  
Total non-current liabilities
    
3,728,306
      
3,865,130
      
3,809,211
  
                         
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
    
194,823
      
87,197
      
150,440
  
Total equity
    
840,781
      
733,155
      
796,398
  
                         
Total liabilities and equity
    
5,153,847
      
5,545,055
      
5,170,366
  

Dorad Energy Ltd.
Condensed Interim Income Statement

   
For the nine months ended
    
For the three months ended
    
Year ended
  
   
September 30
    
September 30
    
December 31
  
   
2016
    
2015
    
2016
    
2015
    
2015
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
  
                                         
Revenues
    
1,739,691
      
1,840,706
      
613,233
      
673,378
      
2,356,832
  
                                         
Operating costs of the Power
                                        
 Plant
                                        
Energy costs
    
419,033
      
482,598
      
134,223
      
186,420
      
613,689
  
Electricity purchase and
                                        
 infrastructure services
    
813,480
      
841,539
      
269,846
      
272,953
      
1,000,947
  
Depreciation and amortization
    
157,811
      
158,364
      
52,480
      
53,160
      
209,953
  
Other operating costs
    
102,815
      
112,980
      
37,626
      
46,155
      
149,808
  
                                         
Total cost of Power Plant
    
1,493,139
      
1,595,481
      
494,175
      
558,688
      
1,974,397
  
                                         
Profit from operating the
                                        
 Power Plant
    
246,552
      
245,225
      
119,058
      
114,690
      
382,435
  
                                         
General and administrative
                                        
 expenses
    
13,612
      
17,084
      
4,867
      
4,279
      
25,681
  
                                         
Operating profit
    
232,940
      
228,141
      
114,191
      
110,411
      
356,754
  
                                         
Financing income
    
1,429
      
3,415
      
(768
)
    
(598
)
    
476
  
Financing expenses
    
(179,766
)
    
(177,062
)
    
(70,963
)
    
(69,279
)
    
(216,808
)
Financing expenses, net
    
(178,337
)
    
(173,647
)
    
(71,731
)
    
(69,877
)
    
(216,332
)
                                         
Profit before taxes
                                        
 on income
    
54,603
      
54,494
      
42,460
      
40,534
      
140,422
  
                                         
Taxes on income
    
(10,220
)
    
(14,922
)
    
(10,627
)
    
(10,741
)
    
(37,607
)
                                         
Profit  for the period
    
44,383
      
39,572
      
31,833
      
29,793
      
102,815
  

 
Dorad Energy Ltd.
Condensed Interim Statement of Changes in Equity

               
Capital reserve
              
   
Share
    
Share
    
for activities with
    
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, 2016 (Unaudited)
                          
                               
Balance as at
                              
 January 1, 2016 (Audited)
    
11
      
642,199
      
3,748
      
150,440
      
796,398
  
                                         
Profit for the period
    
-
      
-
      
-
      
44,383
      
44,383
  
                                         
Balance as at September 30,
                                        
 2016 (Unaudited)
    
11
      
642,199
      
3,748
      
194,823
      
840,781
  
                                         
For the nine months ended
                                        
September 30, 2015 (Unaudited)
                                  
                                         
Balance as at
                                        
 January 1, 2015 (Audited)
    
11
      
642,199
      
3,748
      
47,625
      
693,583
  
                                         
Profit for the period
    
-
      
-
      
-
      
39,572
      
39,572
  
                                         
Balance as at September 30,
                                        
 2015 (Unaudited)
    
11
      
642,199
      
3,748
      
87,197
      
733,155
  
                                         
For the three months ended
                                        
September 30, 2016 (Unaudited)
                                  
                                         
Balance as at
                                        
 July 1, 2016 (Unaudited)
    
11
      
642,199
      
3,748
      
162,990
      
808,948
  
                                         
Profit for the period
    
-
      
-
      
-
      
31,833
      
31,833
  
                                         
Balance as at September 30,
                                        
 2016 (Unaudited)
    
11
      
642,199
      
3,748
      
194,823
      
840,781
  
                                         
For the three months ended
                                        
September 30, 2015 (Unaudited)
                                  
                                         
Balance as at
                                        
 July 1, 2015 (Unaudited)
    
11
      
642,199
      
3,748
      
57,404
      
703,362
  
                                         
Profit for the period
    
-
      
-
      
-
      
29,793
      
29,793
  
                                         
Balance as at September 30,
                                        
 2015 (Unaudited)
    
11
      
642,199
      
3,748
      
87,197
      
733,155
  


 
Dorad Energy Ltd.
Condensed Interim Statement of Changes in Equity (cont’)
 
               
Capital reserve
              
   
Share
    
Share
    
for activities with
    
Retained
        
   
capital
    
premium
    
shareholders
    
earnings (losses)
    
Total Equity
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
  
For the year ended
                              
 December 31, 2015 (Audited)
                              
                               
Balance as at
                              
January 1, 2015 (Audited)
    
11
      
642,199
      
3,748
      
47,625
      
693,583
  
                                         
Profit for the year
            
-
      
-
      
102,815
      
102,815
  
                                         
Balance as at December 31,
                                        
 2015 (Audited)
    
11
      
642,199
      
3,748
      
150,440
      
796,398
  


 
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
  
   
2016
    
2015
    
2016
    
2015
    
2015
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
  
                             
Cash flows from operating activities:
                              
Profit for the period
    
44,383
      
39,572
      
31,833
      
29,793
      
102,815
  
Adjustments:
                                        
Depreciation and amortization
                                        
 and fuel consumption
    
171,941
      
179,190
      
57,862
      
73,634
      
237,295
  
Taxes on income
    
10,220
      
14,922
      
10,627
      
10,741
      
37,607
  
Financing expenses, net
    
178,337
      
173,647
      
71,731
      
69,878
      
216,332
  
     
360,498
      
367,759
      
140,220
      
154,253
      
491,234
  
                                         
 Change in trade receivables
    
52,185
      
8,811
      
49,219
      
(101,282
)
    
49,693
  
 Change in other receivables
    
14,379
      
(8,194
)
    
776
      
(10,534
)
    
(20,876
)
 Change in trade payables
    
23,566
      
179,464
      
(57,262
)
    
164,470
      
(129,385
)
 Change in other payable
    
1,714
      
4,892
      
1,553
      
(15,804
)
    
(6,842
)
 Change in employee benefits, net
    
-
      
8
      
-
      
-
      
55
  
     
91,844
      
184,981
      
(5,714
)
    
36,850
      
(107,355
)
 Net cash flows provided by
                                        
 operating activities
    
496,725
      
592,312
      
166,339
      
220,896
      
486,694
  
Net cash flows used in
                                        
 investing activities
                                        
Proceeds from (payments for)
                                        
 settlement of financial derivatives
    
(2,670
)
    
10,651
      
(1,305
)
    
626
      
9,609
  
Payment of pledged deposit
    
29,486
      
38,679
      
29,486
      
-
      
38,679
  
Investment in long-term restricted
                                        
 deposit
    
(143,891
)
    
(70,000
)
    
(103,500
)
    
-
      
(135,000
)
Release of long-term restricted deposits
    
70,000
      
-
      
-
      
-
      
-
  
Investment in long-term prepaid expenses
    
(90
)
    
-
      
-
      
-
      
-
  
Investment in fixed assets
    
(21,221
)
    
(414,269
)
    
(5,442
)
    
(11,911
)
    
(447,338
)
Investment in intangible assets
    
(1,864
)
    
(987
)
    
(110
)
    
(659
)
    
(1,767
)
Interest received
    
196
      
100
      
75
      
14
      
115
  
Net Cash flows used in
                                        
 investing activities
    
(70,054
)
    
(435,826
)
    
(80,796
)
    
(11,930
)
    
(535,702
)
                                         
Cash flows from financing
                                        
 activities:
                                        
Receipt of long-term loans
                                        
 from related parties
    
16,689
      
23,208
      
16,689
      
-
      
23,208
  
Receipt of long-term loans from banks
    
242,772
      
318,100
      
242,772
      
-
      
318,100
  
Repayment of loans from related
                                        
 parties
    
(147,219
)
    
-
      
(147,219
)
    
-
      
-
  
Repayment of loans from banks
    
(73,460
)
    
(44,495
)
    
-
      
-
      
(105,121
)
Interest paid
    
(302,676
)
    
(100,753
)
    
(199,997
)
    
(938
)
    
(206,032
)
Net cash flows provided by
                                        
 (used in) financing activities
    
(263,894
)
    
196,060
      
(87,755
)
    
(938
)
    
30,155
  
                                         
Net increase (decrease) in cash
                                        
 and cash equivalents for the period
    
162,777
      
352,546
      
(2,212
)
    
208,028
      
(18,853
)
                                         
Effect of exchange rate
                                        
 fluctuations on cash and cash
                                        
 equivalents
    
401
      
(1,180
)
    
69
      
(1,139
)
    
(1,031
)
                                         
Cash and cash equivalents at
                                        
 beginning of period
    
51,894
      
71,778
      
217,215
      
216,255
      
71,778
  
                                         
Cash and cash equivalents at
                                        
 end of period
    
215,072
      
423,144
      
215,072
      
423,144
      
51,894