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 and Nine
Months Ended September 30, 2017
 
Tel-Aviv, Israel, November 28, 2017 – Ellomay Capital Ltd. (NYSE American; 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 and nine months ended September 30, 2017 of Dorad Energy Ltd. (“Dorad”), in which Ellomay currently indirectly holds approximately 9.4%.

On November 27, 2017, 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 Dorad for the quarter ended September 30, 2017 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, which are currently expected to be published on or about December 20, 2017.  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, 2017 - approximately NIS 716.2 million (or approximately USD 202.9 million, based on the exchange rate on September 30, 2017).
 
·
Dorad’s unaudited operating profit for the three months ended September 30, 2017 - approximately NIS 135.4 million (or approximately USD 38.4 million, based on the exchange rate on September 30, 2017).

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, 2017, which include the summer months of July and August and the intermediate month of 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, 2016 and as of and for the three and nine month periods ended September 30, 2016 and 2017 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.
 
On October 1, 2017, Eilat Ashkelon Infrastructure Services Ltd. (“EAIS”), which holds 37.5% of Dorad’s shares, filed a statement of claim in the arbitration proceedings held in connection with the petition to approve a derivative claim (the “Claim”) filed by Dori Energy and Hemi Raphael against the other two shareholders of Dorad, Zorlu Enerji Elektrik Uretim A.S and Edelcom Ltd. (“Edelcom”) and several other plaintiffs, in connection with the engineering, procurement & construction contractor of the power plant held by Dorad. In its statement of claim, EAIS joins Dori Energy’s and Mr. Raphael’s request as set forth in the Claim and raises claims that are similar to the claims raised by Dori Energy and Mr. Raphael in the Claim. Following EAIS’s filing, the arbitrator determined the dates for filing responses on behalf of the plaintiffs and determined dates for the final preliminary hearing (scheduled for January 1, 2018) and for the discovery process.
 
On October 26, 2017, Edelcom filed an appeal with respect to the ruling of the Israeli District Court issued on August 31, 2017, in which the Court ruled that a pledge on Dori Energy's shares held by the Luzon Group (as contemplated by the Luzon Group in its prospectus governing the debentures issued by the Luzon Group in Israel) does not provide a right of first refusal to Dorad's other shareholders.
 
As reported in Dorad’s financial statements for the three and nine month periods ended September 30, 2017, on October 30, 2017, Dorad signed an agreement with Energian Israel Ltd. regarding the possible acquisition of natural gas from the Karish and Tanin reserves held by it (which are expected to complete construction by the end of 2020), to purchase natural gas in a cumulative volume of approximately 6 BCM over a period of 14 years. The agreement between Dorad and Energian Israel Ltd. is subject to conditions precedent.
 
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 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, 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 850 MW, representing about 6%-8% of Israel’s total current electricity consumption;
·
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;
·
51% of Groen Gas Goor B.V. and of Groen Gas Oude-Tonge B.V., project companies developing anaerobic digestion plants with a green gas production capacity of approximately 375 Nm3/h, in Goor, the Netherlands and 475 Nm3/h, in Oude Tonge, the Netherlands, respectively.

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: miria@ellomay.com 
 
Dorad Energy Ltd.
 
Interim Condensed Statements of Financial Position
 
   
September 30
    
September 30
    
December 31
  
   
2017
    
2016
    
2016
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
  
Assets
                  
Cash and cash equivalents
    
308,106
      
215,072
      
80,967
  
Trade receivables
    
296,623
      
227,405
      
294,351
  
Other receivables
    
82,018
      
17,615
      
37,174
  
Total current assets
    
686,747
      
460,092
      
412,492
  
                         
Restricted deposit
    
395,661
      
408,043
      
411,574
  
Prepaid expenses
    
44,350
      
45,502
      
45,938
  
Fixed asset
    
4,058,427
      
4,231,913
      
4,170,151
  
Intangible assets
    
6,683
      
8,297
      
8,551
  
Total non-current assets
    
4,505,121
      
4,693,755
      
4,636,214
  
                         
Total assets
    
5,191,868
      
5,153,847
      
5,048,706
  
                         
Liabilities
                        
Current maturities of loans from banks
    
252,000
      
234,680
      
197,389
  
Current maturities of loans from related parties
    
70,000
      
70,000
      
80,000
  
Trade payables
    
413,988
      
267,688
      
293,613
  
Other payables
    
4,628
      
10,818
      
9,152
  
Financial derivatives
    
3,372
      
1,574
      
-
  
Total current liabilities
    
743,988
      
584,760
      
580,154
  
                         
Loans from banks
    
3,274,223
      
3,464,531
      
3,367,832
  
Loans from related parties
    
120,404
      
156,946
      
151,638
  
Provision for dismantling and restoration
    
36,103
      
35,567
      
35,700
  
Deferred tax liabilities, net
    
89,473
      
71,102
      
65,618
  
Liabilities for employee benefits, net
    
160
      
160
      
160
  
Total non-current liabilities
    
3,520,363
      
3,728,306
      
3,620,948
  
                         
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
    
281,559
      
194,823
      
201,646
  
Total equity
    
927,517
      
840,781
      
847,604
  
                         
Total liabilities and equity
    
5,191,868
      
5,153,847
      
5,048,706
  


Dorad Energy Ltd.
 
Interim Condensed Statements of Profit and Loss

   
For the nine months ended
    
For the three months ended
    
Year ended
  
   
September 30
    
September 30
    
December 31
  
   
2017
    
2016
    
2017
    
2016
    
2016
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
  
Revenues
    
1,927,460
      
1,739,691
      
716,171
      
613,233
      
2,299,565
  
                                         
Operating costs of the Power Plant
                                        
Energy costs
    
480,876
      
419,033
      
189,081
      
134,223
      
550,401
  
Electricity purchase and
                                        
 infrastructure services
    
914,350
      
813,480
      
310,939
      
269,846
      
1,104,826
  
Depreciation and   amortization
    
150,147
      
157,811
      
52,513
      
52,480
      
209,057
  
Other operating costs
    
81,275
      
102,815
      
23,360
      
37,626
      
141,132
  
                                         
Total operating cost of Power Plant
    
1,626,648
      
1,493,139
      
575,893
      
494,175
      
2,005,416
  
                                         
Profit from operating the
                                        
 Power Plant
    
300,812
      
246,552
      
140,278
      
119,058
      
294,149
  
                                         
General and administrative
                                        
 expenses
    
13,497
      
13,612
      
4,921
      
4,867
      
19,178
  
                                         
Operating profit
    
287,315
      
232,940
      
135,357
      
114,191
      
274,971
  
                                         
Financing income
    
2,427
      
1,429
      
617
      
(768
)
    
7,025
  
Financing expenses
    
(185,974
)
    
(179,766
)
    
(35,230
)
    
(70,963
)
    
(226,054
)
Financing expenses, net
    
(183,547
)
    
(178,337
)
    
(34,613
)
    
(71,731
)
    
(219,029
)
                                         
Profit before taxes
                                        
 on income
    
103,768
      
54,603
      
100,744
      
42,460
      
55,942
  
                                         
Taxes on income
    
(23,855
)
    
(10,220
)
    
(23,168
)
    
(10,627
)
    
(4,736
)
                                         
Profit  for the period
    
79,913
      
44,383
      
77,576
      
31,833
      
51,206
  
 

Dorad Energy Ltd.
 
Interim Condensed Statements of Changes in Shareholders’ Equity

               
Capital reserve
              
   
Share
    
Share
    
for activities with
    
Retained
        
   
capital
    
premium
    
shareholders
    
earnings
    
Total Equity
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
  
For the nine month period ended
                              
 September 30, 2017 (Unaudited)
                          
                               
Balance as at
                              
 January 1, 2017 (Audited)
    
11
      
642,199
      
3,748
      
201,646
      
847,604
  
                                         
Profit for the period
    
-
      
-
      
-
      
79,913
      
79,913
  
                                         
Balance as at September 30,
                                        
 2017 (Unaudited)
    
11
      
642,199
      
3,748
      
281,559
      
927,517
  
                                         
For the nine month period 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 three month period ended
                                        
 September 30, 2017 (Unaudited)
                                  
                                         
Balance as at
                                        
 July 1, 2017 (Unaudited)
    
11
      
642,199
      
3,748
      
203,983
      
849,941
  
                                         
Profit for the period
    
-
      
-
      
-
      
77,576
      
77,576
  
                                         
Balance as at September 30,
                                        
 2017 (Unaudited)
    
11
      
642,199
      
3,748
      
281,559
      
927,517
  
                                         
For the three month period 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 year ended
                              
 December 31, 2016 (Audited)
                              
                               
Balance as at
                              
 January 1, 2016 (Audited)
    
11
      
642,199
      
3,748
      
150,440
      
796,398
  
                                         
Profit for the year
    
-
      
-
      
-
      
51,206
      
51,206
  
                                         
Balance as at December 31,
                                        
 2016 (Audited)
    
11
      
642,199
      
3,748
      
201,646
      
847,604
  
 
Dorad Energy Ltd.
 
Interim Condensed Statements of Cash Flows

   
For the nine months ended
    
For the three months ended
    
Year ended
  
   
September 30
    
September 30
    
December 31
  
   
2017
    
2016
    
2017
    
2016
    
2016
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
  
Cash flows from operating
                              
 activities:
                              
Profit for the period
    
79,913
      
44,383
      
77,576
      
31,833
      
51,206
  
Adjustments:
                                        
Depreciation and amortization
                                        
 and fuel consumption
    
213,751
      
171,941
      
70,845
      
57,862
      
238,484
  
Taxes on income
    
23,855
      
10,220
      
23,168
      
10,627
      
4,736
  
Financing expenses, net
    
183,547
      
178,337
      
34,613
      
71,731
      
219,029
  
     
421,153
      
360,498
      
128,626
      
140,220
      
462,249
  
                                         
 Change in trade receivables
    
(1,692
)
    
52,185
      
(30,794
)
    
49,219
      
(14,761
)
 Change in other receivables
    
(61,955
)
    
14,379
      
(1,600
)
    
776
      
(5,179
)
 Change in trade payables
    
107,940
      
23,566
      
71,234
      
(57,262
)
    
48,807
  
 Change in other payables
    
(1,078
)
    
1,714
      
1,308
      
1,553
      
677
  
     
43,215
      
91,844
      
40,148
      
(5,714
)
    
29,544
  
 Net cash flows provided by
                                        
 operating activities
    
544,281
      
496,725
      
246,350
      
166,339
      
542,999
  
                                         
Cash flows used in
                                        
 investing activities
                                        
Payments for settlement of
                                        
 financial derivatives
    
(7,018
)
    
(2,670
)
    
(2,385
)
    
(1,305
)
    
(2,017
)
Release of pledged deposit
    
-
      
29,486
      
-
      
29,486
      
29,486
  
Insurance proceeds in respect of
                                        
 damage to fixed asset
    
15,444
      
-
      
15,444
      
-
      
-
  
Investment in long-term restricted
                                        
 deposits
    
(21,000
)
    
(143,891
)
    
-
      
(103,500
)
    
(143,891
)
Release of long-term restricted
                                        
 deposits
    
25,790
      
70,000
      
-
      
-
      
70,000
  
Long-term prepaid expenses
    
-
      
(90
)
    
-
      
-
      
(1,056
)
Investment in fixed assets
    
(95,277
)
    
(21,221
)
    
(41,491
)
    
(5,442
)
    
(25,415
)
Investment in intangible assets
    
(258
)
    
(1,864
)
    
-
      
(110
)
    
(2,804
)
Interest received
    
1,847
      
196
      
617
      
75
      
624
  
Net Cash flows used in
                                        
 investing activities
    
(72,331
)
    
(70,054
)
    
(19,674
)
    
(80,796
)
    
(75,073
)
                                         
Cash flows from financing
                                        
 activities:
                                        
Receipt of long-term loans
                                        
 from related parties
    
-
      
16,689
      
-
      
16,689
      
16,689
  
Receipt of long-term loans from banks
    
-
      
242,772
      
-
      
242,772
      
242,772
  
Repayment of long-term loans
                                        
 from related parties
    
(39,628
)
    
(147,219
)
    
-
      
(147,219
)
    
(147,219
)
Repayment of loans from banks
    
(85,112
)
    
(73,460
)
    
-
      
-
      
(143,896
)
Interest paid
    
(121,093
)
    
(302,676
)
    
(228
)
    
(199,997
)
    
(408,071
)
Net cash flows used in
                                        
 financing activities
    
(245,833
)
    
(263,894
)
    
(228
)
    
(87,755
)
    
(439,725
)
                                         
Net increase (decrease) in cash
                                        
 and cash equivalents for the period
    
226,117
      
162,777
      
226,448
      
(2,212
)
    
28,201
  
                                         
Effect of exchange rate
                                        
 fluctuations on cash and cash
                                        
 equivalents
    
1,022
      
401
      
345
      
69
      
872
  
                                         
Cash and cash equivalents at
                                        
 beginning of period
    
80,967
      
51,894
      
81,313
      
217,215
      
51,894
  
                                         
Cash and cash equivalents at
                                        
 end of period
    
308,106
      
215,072
      
308,106
      
215,072
      
80,967