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 June 30, 2018
 
Tel-Aviv, Israel, September 3, 2018 – Ellomay Capital Ltd. (NYSE American; TASE: ELLO) (“Ellomay” or the “Company”), a renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel, today reported the publication in Israel of financial statements for the three months ended June 30, 2018 of Dorad Energy Ltd. (“Dorad”), in which Ellomay currently indirectly holds approximately 9.4%.

On August 31, 2018, 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 June 30, 2018 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 September 25, 2018.  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 June 30, 2018 - approximately NIS 574.4 million.
 
·
Dorad’s unaudited operating profit for the three months ended June 30, 2018 - approximately NIS 41.4 million.

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 June 30, 2018, which include the intermediate months of April - June, are not indicative of full year results.

A translation of the financial results for Dorad as of and for the year ended December 31, 2017 and as of and for the three and six month periods ended June 30, 2017 and 2018 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 American and with the Tel Aviv Stock Exchange under the trading symbol “ELLO”. Since 2009, Ellomay Capital focuses its business in the renewable energy and power sectors in Europe and Israel.
 
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 156 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 operating or 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: HilaI@ellomay.com
 
 
Dorad Energy Ltd.
Interim Condensed Statements of Financial Position

   
June 30
    
June 30
    
December 31
  
   
2018
    
2017
    
2017
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
  
Current assets
                  
Cash and cash equivalents
    
73,826
      
81,313
      
184,182
  
Trade receivables
    
247,370
      
265,829
      
330,397
  
Other receivables
    
54,059
      
97,529
      
83,289
  
Pledged deposit
    
6,551
      
-
      
-
  
Total current assets
    
381,806
      
444,671
      
597,868
  
                         
Non-current assets
                        
Restricted deposit
    
420,717
      
393,657
      
405,306
  
Prepaid expenses
    
42,763
      
44,880
      
43,821
  
Fixed assets
    
3,974,402
      
4,099,540
      
4,009,008
  
Intangible assets
    
4,705
      
7,420
      
6,097
  
Total non-current assets
    
4,442,587
      
4,545,497
      
4,464,232
  
                         
Total assets
    
4,824,393
      
4,990,168
      
5,062,100
  
                         
Current liabilities
                        
Current maturities of loans from banks
    
212,945
      
203,415
      
203,819
  
Current maturities of loans from related parties
    
110,000
      
70,000
      
140,464
  
Trade payables
    
279,810
      
329,456
      
415,798
  
Other payables
    
4,915
      
22,822
      
5,649
  
Financial derivatives
    
-
      
7,298
      
1,191
  
Total current liabilities
    
607,670
      
632,991
      
766,921
  
                         
Non-current liabilities
                        
Loans from banks
    
3,103,655
      
3,287,991
      
3,187,873
  
Loans from related parties
    
12,047
      
116,812
      
54,764
  
Provision for dismantling and restoration
    
40,179
      
35,968
      
36,239
  
Deferred tax liabilities
    
99,549
      
66,305
      
89,298
  
Liabilities for employee benefits, net
    
160
      
160
      
160
  
Total non-current liabilities
    
3,255,590
      
3,507,236
      
3,368,334
  
                         
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
    
315,175
      
203,983
      
280,887
  
Total equity
    
961,133
      
849,941
      
926,845
  
                         
Total liabilities and equity
    
4,824,393
      
4,990,168
      
5,062,100
  
 
Dorad Energy Ltd.
Interim Condensed Statements of Profit and Loss

   
For the six months ended
    
For the three months ended
    
Year ended
  
   
June 30
    
June 30
    
December 31
  
   
2018
    
2017
    
2018
    
2017
    
2017
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
  
Revenues
    
1,259,285
      
1,211,289
      
574,434
      
536,602
      
2,523,263
  
                                         
Operating costs of the Power Plant
                                        
                                         
Energy costs
    
330,747
      
291,795
      
184,674
      
145,767
      
616,221
  
Electricity purchase and infrastructure services
    
592,030
      
603,411
      
265,403
      
273,001
      
1,212,431
  
Depreciation and amortization
    
107,404
      
97,634
      
55,235
      
46,189
      
208,705
  
Other operating costs
    
65,013
      
57,915
      
27,719
      
25,296
      
122,345
  
                                         
Total operating costs of Power Plant
    
1,095,194
      
1,050,755
      
533,031
      
490,253
      
2,159,702
  
                                         
Profit from operating the Power Plant
    
164,091
      
160,534
      
41,403
      
46,349
      
363,561
  
                                         
General and administrative expenses
    
10,529
      
8,576
      
5,251
      
4,505
      
18,712
  
                                         
Operating profit
    
153,562
      
151,958
      
36,152
      
41,844
      
344,849
  
                                         
Financing income
    
11,857
      
1,810
      
7,625
      
1,312
      
3,195
  
Financing expenses
    
120,880
      
150,744
      
80,721
      
89,829
      
245,122
  
                                         
Financing expenses, net
    
109,023
      
148,934
      
73,096
      
88,517
      
241,927
  
                                         
Profit (loss) before taxes on income
    
44,539
      
3,024
      
(36,944
)
    
(46,673
)
    
102,922
  
                                         
Tax benefit (Taxes on  income)
    
(10,251
)
    
(687
)
    
8,496
      
10,744
      
(23,681
 )
                                         
Profit (loss) for the period
    
34,288
      
2,337
      
(28,448
)
    
(35,929
)
    
79,241
  
 
 
Dorad Energy Ltd.
Interim Condensed Statements of Changes in Shareholders’ Equity

               
Capital
              
               
reserve for
              
   
Share
    
Share
    
activities with
    
Retained
        
   
capital
    
premium
    
shareholders
    
earnings
    
Total Equity
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
  
For the six months ended June 30, 2018  (Unaudited)
                              
                               
Balance as at January 1, 2018 (Audited)
    
11
      
642,199
      
3,748
      
280,887
      
926,845
  
                                         
Profit for the period
    
-
      
-
      
-
      
34,288
      
34,288
  
                                         
Balance as at June 30, 2018 (Unaudited)
    
11
      
642,199
      
3,748
      
315,175
      
961,133
  
                                         
For the six months ended June 30, 2017 (Unaudited)
                                        
                                       
Balance as at January 1, 2017 (Audited)
    
11
      
642,199
      
3,748
      
201,646
      
847,604
  
                                         
Profit for the period
    
-
      
-
      
-
      
2,337
      
2,337
  
                                         
Balance as at June 30, 2017 (Unaudited)
    
11
      
642,199
      
3,748
      
203,983
      
849,941
  
                                         
For the three months ended June 30, 2018 (Unaudited)
                                        
                                         
Balance as at April 1, 2018 (Unaudited)
    
11
      
642,199
      
3,748
      
343,623
      
989,581
  
                                         
Loss for the period
    
-
      
-
      
-
      
(28,448
)
    
(28,448
)
                                         
Balance as at June 30, 2018 (Unaudited)
    
11
      
642,199
      
3,748
      
315,175
      
961,133
  
                                         
For the three months ended June 30, 2017 (Unaudited)
                                        
                                         
Balance as at April 1, 2017 (Unaudited)
    
11
      
642,199
      
3,748
      
239,912
      
885,870
  
                                         
Loss for the period
    
-
      
-
      
-
      
(35,929
)
    
(35,929
)
                                         
Balance as at June 30, 2017 (Unaudited)
    
11
      
642,199
      
3,748
      
203,983
      
849,941
  
                                         
For the year ended December 31, 2017 (Audited)
                                        
                                         
Balance as at January 1, 2017 (Audited)
    
11
      
642,199
      
3,748
      
201,646
      
847,604
  
                                         
Profit for the year
    
-
      
-
      
-
      
79,241
      
79,241
  
                                         
Balance as at December 31, 2017 (Audited)
    
11
      
642,199
      
3,748
      
280,887
      
926,845
  
 
 
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
  
   
2018
    
2017
    
2018
    
2017
    
2017
  
   
(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
    
34,288
      
2,337
      
(28,448
)
    
(35,929
)
    
79,241
  
Adjustments:
                                        
Depreciation and amortization and fuel consumption
    
111,043
      
142,906
      
58,737
      
72,816
      
286,542
  
Taxes on income (tax  benefit)
    
10,251
      
687
      
(8,496
)
    
(10,744
)
    
23,681
  
Financing expenses, net
    
109,023
      
148,934
      
73,096
      
88,517
      
241,927
  
     
230,317
      
292,527
      
123,337
      
150,589
      
552,150
  
                                         
Change in trade receivables
    
83,026
      
29,102
      
38,300
      
8,581
      
(35,465
)
Change in other receivables
    
9,657
      
(60,355
)
    
(3,080
)
    
(41,999
)
    
(84,857
)
Change in trade payables
    
(149,819
)
    
36,707
      
(31,034
)
    
42,984
      
123,045
  
Change in other payables
    
(733
)
    
(2,387
)
    
(12,272
)
    
(19,779
)
    
(2,669
)
     
(57,869
)
    
3,067
      
(8,086
)
    
(10,213
)
    
54
  
                                       
Net cash flows provided by operating activities
    
206,736
      
297,931
      
86,803
      
104,447
      
631,445
  
                                         
Cash flows used in investing activities
                                        
Proceeds (payment) for settlement of financial derivatives
    
2,357
      
(4,633
)
    
2,284
      
(2,784
)
    
(10,596
)
Insurance proceeds in respect of damage to fixed asset
    
19,438
      
-
      
6,788
      
-
      
38,742
  
Investment in long-term restricted deposit
    
(7,158
)
    
(21,000
)
    
(2,000
)
    
-
      
(34,000
)
Release of long-term restricted deposit
    
-
      
25,790
      
-
      
12,572
      
25,790
  
Investment in fixed assets
    
(61,050
)
    
(53,786
)
    
(30,100
)
    
(21,804
)
    
(121,361
)
Investment in intangible assets
    
(123
)
    
(258
)
    
(4
)
    
(227
)
    
(413
)
Interest received
    
1,484
      
1,230
      
708
      
732
      
1,268
  
                                       
Net cash flows used in investing activities
    
(45,052
)
    
(52,657
)
    
(22,324
)
    
(11,511
)
    
(100,570
)
                                         
Cash flows from financing activities:
                                        
Repayment of loans from related parties
    
(62,802
)
    
(39,628
)
    
-
      
-
      
(39,628
)
Repayment of loans from banks
    
(91,345
)
    
(85,112
)
    
(91,345
)
    
(85,112
)
    
(161,668
)
Interest paid
    
(119,447
)
    
(120,865
)
    
(101,436
)
    
(105,183
)
    
(227,530
)
Net cash flows used in financing activities
    
(273,594
)
    
(245,605
)
    
(192,781
)
    
(190,295
)
    
(428,826
)
                                         
Net increase (decrease) in cash and cash equivalents for the period
    
(111,910
)
    
(331
)
    
(128,302
)
    
(97,359
)
    
102,049
  
                                         
Effect of exchange rate fluctuations on cash and cash equivalents
    
1,554
      
677
      
1,299
      
523
      
1,166
  
Cash and cash equivalents at beginning of period
    
184,182
      
80,967
      
200,829
      
178,149
      
80,967
  
Cash and cash equivalents at end of period
    
73,826
      
81,313
      
73,826
      
81,313
      
184,182