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, 2018
 
Tel-Aviv, Israel, December 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 and nine months ended September 30, 2018 of Dorad Energy Ltd. (“Dorad”), in which Ellomay currently indirectly holds approximately 9.4%.

On November 29, 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 September 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 December 27, 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 September 30, 2018 - approximately NIS 730.9 million.
 
·
Dorad’s unaudited operating profit for the three months ended June 30, 2018 - approximately NIS 161.2 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 September 30, 2018, 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, 2017 and as of and for the three and nine month periods ended September 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

   
September 30
    
September 30
    
December 31
  
   
2018
    
2017
    
2017
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
  
Current assets
                  
Cash and cash equivalents
    
284,094
      
308,106
      
184,182
  
Trade receivables
    
254,045
      
296,623
      
330,397
  
Other receivables
    
38,579
      
82,018
      
83,289
  
Pledged deposit
    
3,508
      
-
      
-
  
Total current assets
    
580,226
      
686,747
      
597,868
  
                         
Non-current assets
                        
Restricted deposit
    
420,808
      
395,661
      
405,306
  
Prepaid expenses
    
42,233
      
44,350
      
43,821
  
Fixed assets
    
3,927,348
      
4,058,427
      
4,009,008
  
Intangible assets
    
3,961
      
6,683
      
6,097
  
Total non-current assets
    
4,394,350
      
4,505,121
      
4,464,232
  
Total assets
    
4,974,576
      
5,191,868
      
5,062,100
  
                         
Current liabilities
                        
Current maturities of loans from banks
    
255,941
      
252,000
      
203,819
  
Current maturities of loans from related parties
    
110,000
      
70,000
      
140,464
  
Trade payables
    
259,782
      
413,988
      
415,798
  
Other payables
    
19,046
      
4,628
      
5,649
  
Financial derivatives
    
-
      
3,372
      
1,191
  
Total current liabilities
    
644,769
      
743,988
      
766,921
  
                         
Non-current liabilities
                        
Loans from banks
    
3,108,089
      
3,274,223
      
3,187,873
  
Loans from related parties
    
15,258
      
120,404
      
54,764
  
Provision for dismantling and restoration
    
40,288
      
36,103
      
36,239
  
Deferred tax liabilities
    
123,774
      
89,473
      
89,298
  
Liabilities for employee benefits, net
    
160
      
160
      
160
  
Total non-current liabilities
    
3,287,569
      
3,520,363
      
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
    
396,280
      
281,559
      
280,887
  
Total equity
    
1,042,238
      
927,517
      
926,845
  
Total liabilities and equity
    
4,974,576
      
5,191,868
      
5,062,100
  
 
 
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
  
   
2018
    
2017
    
2018
    
2017
    
2017
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
  
                                         
Revenues
    
1,990,177
      
1,927,460
      
730,891
      
716,171
      
2,523,263
  
                                         
Operating costs of the Power Plant
                                        
                                         
Energy costs
    
517,660
      
480,876
      
186,913
      
189,081
      
616,221
  
Electricity purchase and infrastructure services
    
880,927
      
914,350
      
288,898
      
310,939
      
1,212,431
  
Depreciation and amortization
    
163,977
      
150,147
      
56,572
      
52,513
      
208,705
  
Other operating costs
    
102,333
      
81,275
      
37,321
      
23,360
      
122,345
  
                                         
Total operating costs of Power Plant
    
1,664,897
      
1,626,648
      
569,704
      
575,893
      
2,159,702
  
                                         
Profit from operating the Power Plant
    
325,280
      
300,812
      
161,187
      
140,278
      
363,561
  
                                         
General and administrative expenses
    
15,401
      
13,497
      
4,873
      
4,921
      
18,712
  
                                         
Operating profit
    
309,879
      
287,315
      
156,314
      
135,357
      
344,849
  
                                         
Financing income
    
16,540
      
2,427
      
4,684
      
617
      
3,195
  
Financing expenses
    
176,550
      
185,974
      
55,670
      
35,230
      
245,122
  
                                         
Financing expenses, net
    
160,010
      
183,547
      
50,986
      
34,613
      
241,927
  
                                         
Profit before taxes on income
    
149,869
      
103,768
      
105,328
      
100,744
      
102,922
  
                                         
  Taxes on income
    
34,476
      
23,855
      
24,223
      
23,168
      
23,681
  
                                         
Profit for the period
    
115,393
      
79,913
      
81,105
      
77,576
      
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 nine months
                              
 ended September 30, 2018
                              
 (Unaudited)
                              
                               
Balance as at
                              
 January 1, 2018 (Audited)
    
11
      
642,199
      
3,748
      
280,887
      
926,845
  
                                         
Profit for the period
    
-
      
-
      
-
      
115,393
      
115,393
  
                                         
Balance as at
                                        
 September 30, 2018 (Unaudited)
    
11
      
642,199
      
3,748
      
396,280
      
1,042,238
  
                                         
For the nine months
                                        
 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 three months
                                        
 ended September 30, 2018
                                        
 (Unaudited)
                                        
                                         
Balance as at
                                        
 July 1, 2018 (Unaudited)
    
11
      
642,199
      
3,748
      
315,175
      
961,133
  
                                         
Profit for the period
    
-
      
-
      
-
      
81,105
      
81,105
  
                                         
Balance as at
                                        
 September 30, 2018 (Unaudited)
    
11
      
642,199
      
3,748
      
396,280
      
1,042,238
  
                                         
For the three months
                                        
 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 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 nine months ended
    
For the three months ended
    
Year ended
  
   
September 30
    
September 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 for the period
    
115,393
      
79,913
      
81,105
      
77,576
      
79,241
  
Adjustments:
                                        
Depreciation and amortization
                                        
 and fuel consumption
    
167,960
      
213,751
      
56,917
      
70,845
      
286,542
  
Taxes on income
    
34,476
      
23,855
      
24,223
      
23,168
      
23,681
  
Financing expenses, net
    
160,010
      
183,547
      
50,986
      
34,613
      
241,927
  
     
362,446
      
421,153
      
132,126
      
128,626
      
552,150
  
                                         
Change in trade receivables
    
76,488
      
(1,692
)
    
(6,539
)
    
(30,794
)
    
(35,465
)
Change in other receivables
    
23,955
      
(61,955
)
    
14,299
      
(1,600
)
    
(84,857
)
Change in trade payables
    
(161,484
)
    
107,940
      
(11,664
)
    
71,234
      
123,045
  
Change in other payables
    
16,985
      
(1,078
)
    
17,719
      
1,308
      
(2,669
)
     
(44,056
)
    
43,215
      
13,815
      
40,148
      
54
  
Net cash flows provided
                                        
 by operating activities
    
433,783
      
544,281
      
227,046
      
246,350
      
631,445
  
                                         
Cash flows used in
                                        
 investing activities
                                        
Proceeds (payment) for settlement of
                                        
 financial derivatives
    
4,997
      
(7,018
)
    
2,640
      
(2,385
)
    
(10,596
)
Insurance proceeds in respect of damage to fixed asset
    
20,619
      
15,444
      
1,181
      
15,444
      
38,742
  
Investment in long-term
                                        
 restricted deposit
    
(7,158
)
    
(21,000
)
    
-
      
-
      
(34,000
)
Release of long-term restricted
                                        
 deposit
    
-
      
25,790
      
-
      
-
      
25,790
  
Investment in fixed assets
    
(82,341
)
    
(87,136
)
    
(21,291
)
    
(33,350
)
    
(121,361
)
Investment in intangible assets
    
(141
)
    
(258
)
    
(18
)
    
-
      
(413
)
Interest received
    
2,461
      
1,847
      
978
      
617
      
1,268
  
Net cash flows used in
                                        
investing activities
    
(61,563
)
    
(72,331
)
    
(16,510
)
    
(19,674
)
    
(100,570
)
                                         
Cash flows used in
                                        
 financing activities:
                                        
Repayment of loans from
                                        
 related parties
    
(62,802
)
    
(39,628
)
    
-
      
-
      
(39,628
)
Repayment of loans from banks
    
(91,345
)
    
(85,112
)
    
-
      
-
      
(161,668
)
Interest paid
    
(119,803
)
    
(121,093
)
    
(356
)
    
(228
)
    
(227,530
)
Net cash flows used in
                                        
 financing activities
    
(273,950
)
    
(245,833
)
    
(356
)
    
(228
)
    
(428,826
)
                                         
Net increase in
                                        
cash and cash equivalents for
                                        
 the period
    
98,270
      
226,117
      
210,180
      
226,448
      
102,049
  
                                         
Effect of exchange rate fluctuations
                                        
 on cash and cash equivalents
    
1,642
      
1,022
      
88
      
345
      
1,166
  
Cash and cash equivalents at
                                        
 beginning of period
    
184,182
      
80,967
      
73,826
      
81,313
      
80,967
  
Cash and cash equivalents at
                                        
 end of period
    
284,094
      
308,106
      
284,094
      
308,106
      
184,182