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, 2019

Tel-Aviv, Israel, August 29, 2019 – 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, 2019 of Dorad Energy Ltd. (“Dorad”), in which Ellomay currently indirectly holds approximately 9.4%.

On August 28, 2019, 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, 2019 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 24, 2019.  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, 2019 - approximately NIS 591.5 million.
 

 •
Dorad’s unaudited operating profit for the three months ended June 30, 2019 - approximately NIS 42.1 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, 2019, 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, 2018 and as of and for the three and six month periods ended June 30, 2018 and 2019 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.

In June 2019, Dorad made the final repayment of shareholders loans in the aggregate amount of NIS 19 million, of which Dori Energy received approximately NIS 3.6 million (approximately $1 million).


In August 2019, the Israeli Electricity Authority (the “Authority”) published a proposed resolution that is subject to a public hearing concerning an amendment to the standards governing deviations from consumption plans. These standards regulate the accounting mechanism in the event the actual consumer consumption is different than the consumption plan submitted by the electricity manufacturers (such as Dorad), and include a mechanism protecting the manufacturers from random deviations in actual consumption volumes. Based on the Authority’s publication, which includes a call for public comments (the hearing process), the Authority is proposing to revoke the current protections included in the aforementioned standards, claiming that the manufacturers are misusing the protections and regularly submit plans and forecasts that deviate from the actual expected consumption, and also seeks to impose financial sanctions on the manufacturers, which may be in material amounts upon the occurrence of certain deviation events. Based on the Luzon Group’s publication, Dorad is examining the Authority’s publication and the potential implications on Dorad and its financial results, while preparing to mitigate the implications of the proposed revisions and to change the proposed revisions by presenting its position and claims at the public hearing and by acting together with the Israeli  Private Electricity Manufacturers Forum.

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 850MW, 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 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;

•
51% of Talasol, which is involved in a project to construct a photovoltaic plant with a peak capacity of 300MW in the municipality of Talaván, Cáceres, Spain.

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, including the outcome of the hearing process, 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
  
     
 2019
      
* 2018
      
* 2018
  
   
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
  
Current assets
                        
Cash and cash equivalents
    
150,896
      
73,826
      
117,220
  
Trade receivables and accrued income
    
256,203
      
247,370
      
297,997
  
Other receivables
    
35,188
      
54,059
      
56,417
  
Financial derivatives
    
-
      
6,551
      
387
  
Total current assets
    
442,287
      
381,806
      
472,021
  
                         
Non-current assets
                        
Restricted deposit
    
426,215
      
420,717
      
431,096
  
Prepaid expenses
    
40,646
      
42,763
      
41,704
  
Fixed assets
    
3,774,594
      
3,974,402
      
3,869,800
  
Intangible assets
    
1,919
      
4,705
      
3,265
  
Right of use assets
    
57,955
      
-
      
-
  
Total non-current assets
    
4,301,329
      
4,442,587
      
4,345,865
  
                         
Total assets
    
4,743,616
      
4,824,393
      
4,817,886
  
                         
Current liabilities
                        
Current maturities of loans from banks
    
218,637
      
212,945
      
217,254
  
Current maturities of loans from related parties
    
-
      
110,000
      
17,805
  
Current maturities of lease liabilities
    
4,575
      
-
      
-
  
Trade payables
    
270,191
      
279,810
      
340,829
  
Other payables
    
13,748
      
4,915
      
5,966
  
Financial derivatives
    
845
      
-
      
-
  
Total current liabilities
    
507,996
      
607,670
      
581,854
  
                         
Non-current liabilities
                        
Loans from banks
    
2,941,515
      
3,103,655
      
3,016,582
  
Loans from related parties
    
-
      
12,047
      
-
  
Long-term lease liabilities
    
52,372
      
-
      
-
  
Provision for dismantling and restoration
    
35,798
      
40,179
      
35,497
  
Deferred tax liabilities
    
127,590
      
99,549
      
122,803
  
Liabilities for employee benefits, net
    
160
      
160
      
160
  
Total non-current liabilities
    
3,157,435
      
3,255,590
      
3,175,042
  
                         
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
    
432,227
      
315,175
      
415,032
  
Total equity
    
1,078,185
      
961,133
      
1,060,990
  
                         
Total liabilities and equity
    
4,743,616
      
4,824,393
      
4,817,886
  

* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.


Dorad Energy Ltd.
Interim Condensed Statements of Income

   
For the six months ended
    
For the three months ended
    
Year ended
  
   
June 30
    
June 30
    
December 31
  
   
2019
    
2018
    
2019
    
2018
    
2018
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Audited)
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
  
                                         
Revenues
    
1,304,613
      
1,259,285
      
591,535
      
574,434
      
2,628,607
  
                                         
Operating costs of the
                                        
 Power Plant
                                        
                                         
Energy costs
    
349,926
      
330,747
      
190,098
      
184,674
      
687,431
  
Electricity purchase and
                                        
 infrastructure services
    
605,156
      
592,030
      
262,271
      
265,403
      
1,194,948
  
Depreciation and
                                        
 amortization
    
105,368
      
107,404
      
56,068
      
55,235
      
217,795
  
Other operating costs
    
81,768
      
65,013
      
40,980
      
27,719
      
136,705
  
                                         
Total operating costs
                                        
 of Power Plant
    
1,142,218
      
1,095,194
      
549,417
      
533,031
      
2,236,879
  
                                         
Profit from operating
                                        
 the Power Plant
    
162,395
      
164,091
      
42,118
      
41,403
      
391,728
  
                                         
General and
                                        
 administrative expenses
    
9,727
      
10,529
      
4,756
      
5,251
      
20,740
  
                                         
Operating profit
    
152,668
      
153,562
      
37,362
      
36,152
      
370,988
  
                                         
Financing income
    
1,937
      
11,857
      
906
      
7,625
      
24,650
  
Financing expenses
    
132,623
      
120,880
      
94,483
      
80,721
      
227,988
  
                                         
Financing expenses, net
    
130,686
      
109,023
      
93,577
      
73,096
      
203,338
  
                                         
Profit (loss) before
                                        
 taxes on income
    
21,982
      
44,539
      
(56,215
)
    
(36,944
)
    
167,650
  
                                         
Tax benefit (Taxes on
                                        
  income)
    
(4,787
)
    
(10,251
)
    
13,025
      
8,496
      
(33,505
)
                                         
Profit (loss) for the period
    
17,195
      
34,288
      
(43,190
)
    
(28,448
)
    
134,145
  

* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.


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

               
Capital reserve
              
               
for activities
              
   
Share
    
Share
    
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, 2019
                              
 (Unaudited)
                              
                               
Balance as at
                              
 January 1, 2019 (Audited)
    
11
      
642,199
      
3,748
      
415,032
      
1,060,990
  
                                         
Profit for the period
    
-
      
-
      
-
      
17,195
      
17,195
  
                                         
Balance as at
                                        
 June 30, 2019 (Unaudited)
    
11
      
642,199
      
3,748
      
432,227
      
1,078,185
  
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 three months
                                        
 ended June 30, 2019
                                        
 (Unaudited)
                                        
                                         
Balance as at
                                        
 April 1, 2019 (Unaudited)
    
11
      
642,199
      
3,748
      
475,417
      
1,121,375
  
                                         
Loss for the period
    
-
      
-
      
-
      
(43,190
)
    
(43,190
)
                                         
Balance as at
                                        
 June 30, 2019 (Unaudited)
    
11
      
642,199
      
3,748
      
432,227
      
1,078,185
  
                                         
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
  

* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.


Dorad Energy Ltd.
Interim Condensed Statements of Changes in Shareholders’ Equity (cont’d)


               
Capital reserve
              
               
for activities
              
   
Share
    
Share
    
with
    
Retained
        
   
capital
    
premium
    
shareholders
    
earnings
    
Total Equity
  
   
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
    
NIS thousands
  
For the year ended
                              
 December 31, 2018 (Audited)
                              
                               
Balance as at
                              
 January 1, 2018 (Audited)
    
11
      
642,199
      
3,748
      
280,887
      
926,845
  
                                         
Profit for the year
    
-
      
-
      
-
      
134,145
      
134,145
  
                                         
Balance as at
                                        
 December 31, 2018 * (Audited)
    
11
      
642,199
      
3,748
      
415,032
      
1,060,990
  

* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.


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
  
   
2019
    
2018
    
2019
    
2018
    
2018
  
   
(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
    
17,195
      
34,288
      
(43,190
)
    
(28,448
)
    
134,145
  
Adjustments:
                                        
Depreciation and amortization
                                        
 and fuel consumption
    
119,976
      
111,043
      
62,608
      
58,737
      
223,028
  
Taxes on income (tax  benefit)
    
4,787
      
10,251
      
(13,025
)
    
(8,496
)
    
33,505
  
Financing expenses, net
    
130,686
      
109,023
      
93,577
      
73,096
      
203,338
  
     
255,449
      
230,317
      
143,160
      
123,337
      
459,871
  
                                         
Change in trade receivables
    
41,793
      
83,026
      
(13,351
)
    
38,300
      
32,536
  
Change in other receivables
    
12,891
      
9,657
      
9,195
      
(3,080
)
    
6,119
  
Change in trade payables
    
(74,090
)
    
(149,819
)
    
(18,236
)
    
(31,034
)
    
(81,273
)
Change in other payables
    
7,782
      
(733
)
    
5,609
      
(12,272
)
    
304
  
     
(11,624
)
    
(57,869
)
    
(16,783
)
    
(8,086
)
    
(42,314
)
Net cash flows provided
                                        
 by operating activities
    
261,020
      
206,736
      
83,187
      
86,803
      
551,702
  
                                         
Cash flows used in
                                        
 investing activities
                                        
Proceeds (payment) for settlement of
                                        
 financial derivatives
    
(870
)
    
2,357
      
(477
)
    
2,284
      
9,957
  
Insurance proceeds in respect of
                                        
 damage to fixed asset
    
8,337
      
19,438
      
8,337
      
6,788
      
20,619
  
Investment in long-term
                                        
 restricted deposit
    
-
      
(7,158
)
    
-
      
(2,000
)
    
(12,158
)
Investment in fixed assets
    
(20,656
)
    
(61,050
)
    
(15,712
)
    
(30,100
)
    
(79,855
)
Investment in intangible assets
    
(19
)
    
(123
)
    
(19
)
    
(4
)
    
(222
)
Interest received
    
1,918
      
1,484
      
906
      
708
      
3,497
  
Net cash flows used in
                                        
investing activities
    
(11,290
)
    
(45,052
)
    
(6,965
)
    
(22,324
)
    
(58,162
)
                                         
Cash flows from
                                        
 financing activities:
                                        
Repayment of loans from
                                        
 related parties
    
(17,704
)
    
(62,802
)
    
(17,704
)
    
-
      
(160,326
)
Repayment of loans from banks
    
(101,430
)
    
(91,345
)
    
(101,430
)
    
(91,345
)
    
(181,970
)
Interest paid
    
(92,798
)
    
(119,447
)
    
(92,674
)
    
(101,436
)
    
(220,765
)
Repayment of lease liability principal
    
(4,244
)
    
-
      
(147
)
    
-
      
-
  
Net cash flows used in
                                        
 financing activities
    
(216,176
)
    
(273,594
)
    
(211,955
)
    
(192,781
)
    
(563,061
)
                                         
Net increase (decrease) in cash
                                        
 and cash equivalents for
                                        
 the period
    
33,554
      
(111,910
)
    
(135,733
)
    
(128,302
)
    
(69,521
)
                                         
Effect of exchange rate fluctuations
                                        
 on cash and cash equivalents
    
122
      
1,554
      
(168
)
    
1,299
      
2,559
  
Cash and cash equivalents at
                                        
 beginning of period
    
117,220
      
184,182
      
286,797
      
200,829
      
184,182
  
Cash and cash equivalents at end
                                        
 of period
    
150,896
      
73,826
      
150,896
      
73,826
      
117,220
  

* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.