Exhibit 99.1
 

Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three Months
Ended March 31, 2017
 
Tel-Aviv, Israel, May 30, 2017 – 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 March 31, 2017 of Dorad Energy Ltd. (“Dorad”), in which Ellomay currently indirectly holds approximately 9.4%.

On May 29, 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 March 31, 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 June 22, 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 March 31, 2017 - approximately NIS 674.7 million (or approximately USD 185.8 million, based on the exchange rate on March 31, 2017).
 
·
Dorad’s unaudited operating profit for the three months ended March 31, 2017 - approximately NIS 114.2 million (or approximately USD 31.4 million, based on the exchange rate on March 31, 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, which include the winter and intermediate months of January, February and March 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 month periods ended March 31, 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.


 
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;
 
·
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 Statement of Financial Position
 
   
March 31
   
March 31
   
December 31
 
   
2017
   
2016
   
2016
 
   
NIS thousands
   
NIS thousands
   
NIS thousands
 
Assets
                 
Cash and cash equivalents
   
178,149
     
302,470
     
80,967
 
Trade receivables
   
273,830
     
253,559
     
294,351
 
Other receivables
   
55,530
     
25,784
     
37,174
 
Pledged deposit
   
-
     
29,485
     
-
 
Total current assets
   
507,509
     
611,298
     
412,492
 
                         
Restricted deposit
   
410,733
     
334,525
     
411,574
 
Prepaid expenses
   
45,409
     
46,416
     
45,938
 
Fixed assets
   
4,133,262
     
4,335,607
     
4,170,151
 
Intangible assets
   
7,893
     
9,233
     
8,551
 
Total non-current assets
   
4,597,297
     
4,725,781
     
4,636,214
 
                         
Total assets
   
5,104,806
     
5,337,079
     
5,048,706
 
                         
Liabilities
                       
Current maturities of loans from banks
   
246,032
     
215,188
     
197,389
 
Current maturities of loans from related parties
   
70,000
     
130,000
     
80,000
 
Trade payables
   
285,849
     
319,910
     
293,613
 
Other payables
   
26,538
     
19,737
     
9,152
 
Financial derivatives
   
4,250
     
4,798
     
-
 
Total current liabilities
   
632,669
     
689,633
     
580,154
 
                         
Loans from banks
   
3,362,423
     
3,297,603
     
3,367,832
 
Loans from related parties
   
110,800
     
403,557
     
151,638
 
Provision for dismantling and restoration
   
35,834
     
35,301
     
35,700
 
Deferred tax liabilities, net
   
77,050
     
70,826
     
65,618
 
Liabilities for employee benefits, net
   
160
     
160
     
160
 
Total non-current liabilities
   
3,586,267
     
3,807,447
     
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
   
239,912
     
194,041
     
201,646
 
Total equity
   
885,870
     
839,999
     
847,604
 
                         
Total liabilities and equity
   
5,104,806
     
5,337,079
     
5,048,706
 



Dorad Energy Ltd.
Interim Condensed Statements of Profit and Loss
 
   
For the three months ended
   
Year ended
 
   
March 31
   
December 31
 
   
2017
   
2016
   
2016
 
   
NIS thousands
   
NIS thousands
   
NIS thousands
 
Revenues
   
674,687
     
609,942
     
2,299,565
 
                         
Operating costs of the Power Plant
                       
                         
Energy costs
   
146,028
     
126,819
     
550,401
 
Electricity purchase and infrastructure services
   
330,409
     
304,355
     
1,104,826
 
Depreciation and amortization
   
51,446
     
51,339
     
209,057
 
Other operating costs
   
32,618
     
30,911
     
141,132
 
                         
Total operating costs of the Power Plant
   
560,501
     
513,424
     
2,005,416
 
                         
Profit from operating the Power Plant
   
114,186
     
96,518
     
294,149
 
                         
General and administrative expenses
   
4,071
     
4,058
     
19,178
 
                         
Operating profit
   
110,115
     
92,460
     
274,971
 
                         
Financing income
   
498
     
212
     
7,025
 
Financing expenses
   
60,915
     
39,127
     
226,054
 
                         
Financing expenses, net
   
(60,417
)
   
(38,915
)
   
(219,029
)
                         
Profit before taxes on income
   
49,698
     
53,545
     
55,942
 
                         
Taxes on income
   
11,432
     
9,944
     
4,736
 
                         
Profit for the period
   
38,266
     
43,601
     
51,206
 


 
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 three months
                             
 ended March 31, 2017
                             
                               
Balance as at
                             
 January 1, 2017
   
11
     
642,199
     
3,748
     
201,646
     
847,604
 
                                         
Profit for the period
   
-
     
-
     
-
     
38,266
     
38,266
 
                                         
Balance as at
                                       
March 31, 2017
   
11
     
642,199
     
3,748
     
239,912
     
885,870
 
                                         
For the three months
                                       
 ended March 31, 2016
                                       
                                         
Balance as at
                                       
 January 1, 2016
   
11
     
642,199
     
3,748
     
150,440
     
796,398
 
                                         
Profit for the period
   
-
     
-
     
-
     
43,601
     
43,601
 
                                         
Balance as at
                                       
 March 31, 2016
   
11
     
642,199
     
3,748
     
194,041
     
839,999
 
                                         
For the year ended
                                       
 December 31, 2016
                                       
                                         
Balance as at
                                       
 January 1, 2016
   
11
     
642,199
     
3,748
     
150,440
     
796,398
 
                                         
Profit for the year
   
-
     
-
     
-
     
51,206
     
51,206
 
                                         
Balance as at
                                       
 December 31, 2016
   
11
     
642,199
     
3,748
     
201,646
     
847,604
 


Dorad Energy Ltd.
Interim Condensed Statements of Cash Flows

   
For the three months ended
   
Year ended
 
   
March 31
   
December 31
 
   
2017
   
2016
   
2016
 
   
NIS thousands
   
NIS thousands
   
NIS thousands
 
Cash flows from operating activities
                 
Profit for the period
   
38,266
     
43,601
     
51,206
 
                         
Adjustments:
                       
Depreciation, amortization and fuel consumption
   
70,090
     
57,632
     
238,484
 
Taxes on income
   
11,432
     
9,944
     
4,736
 
Financing expenses, net
   
60,417
     
38,915
     
219,029
 
     
141,939
     
106,491
     
462,249
 
                         
Change in trade receivables
   
20,521
     
25,423
     
(14,761
)
Change in other receivables
   
(18,356
)
   
6,211
     
(5,179
)
Change in trade payables
   
(6,279
)
   
73,640
     
48,807
 
Change in other payables
   
17,392
     
2,907
     
677
 
Change in employee benefits, net
   
-
     
-
     
-
 
     
13,278
     
108,181
     
29,544
 
                         
Net cash flows provided by operating activities
   
193,483
     
258,273
     
542,999
 
                         
Cash flows from investing activities
                       
Payment for settlement of financial derivatives
   
(1,849
)
   
(322
)
   
(2,017
)
Payment of pledged deposit
   
-
     
-
     
29,486
 
Investment in long-term restricted deposits
   
(21,000
)
   
-
     
(143,891
)
Release of long-term restricted deposits
   
13,218
     
-
     
70,000
 
Long-term prepaid expenses
   
-
     
-
     
(1,056
)
Investment in fixed assets
   
(31,982
)
   
(5,203
)
   
(25,415
)
Investment in intangible assets
   
(31
)
   
(1,481
)
   
(2,804
)
Interest received
   
498
     
15
     
624
 
                         
Net cash flows used in investing activities
   
(41,146
)
   
(6,991
)
   
(75,073
)
                         
Cash flows from financing activities
                       
Receipt of long-term loans from related parties
   
-
     
-
     
16,689
 
Receipt of long-term loans from banks
   
-
     
-
     
242,772
 
Repayment of loans from related parties
   
(39,628
)
   
-
     
(147,219
)
Repayment of loan from banks
   
-
     
-
     
(143,896
)
Interest paid
   
(15,682
)
   
(602
)
   
(408,071
)
                         
Net cash flows used in financing activities
   
(55,310
)
   
(602
)
   
(439,725
)
                         
Net increase in cash and cash equivalents for the period
   
97,027
     
250,680
     
28,201
 
                         
Effect of exchange rate fluctuations on cash and cash equivalents
   
155
     
(104
)
   
872
 
                         
Cash and cash equivalents at beginning of period
   
80,967
     
51,894
     
51,894
 
                         
Cash and cash equivalents at end of period
   
178,149
     
302,470
     
80,967