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