Exhibit 99.2
 


Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three Months
Ended March 31, 2018
 
Tel-Aviv, Israel, May 30, 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 March 31, 2018 of Dorad Energy Ltd. (“Dorad”), in which Ellomay currently indirectly holds approximately 9.4%.

On May 16, 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 certain information in Israel based on the requirements of the Israeli Securities Law, 1968, which included the financial statements of Dorad for the three months ended March 31, 2018.
 
The financial results of Dorad for the quarter ended March 31, 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 June 21, 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 March 31, 2018 - approximately NIS 684.9 million.
 
·
Dorad’s unaudited operating profit for the three months ended March 31, 2018 - approximately NIS 117.4 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 March 31, 2018, 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, 2017 and as of and for the three month periods ended March 31, 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: limors@ellomay.com  


Dorad Energy Ltd.
Interim Condensed Statements of Financial Position

   
March 31
   
March 31
   
December 31
 
   
2018
   
2017
   
2017
 
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
   
NIS thousands
   
NIS thousands
   
NIS thousands
 
Current assets
                 
Cash and cash equivalents
   
200,829
     
178,149
     
184,182
 
Trade receivables
   
285,670
     
273,830
     
330,397
 
Other receivables
   
57,904
     
55,530
     
83,289
 
Financial derivatives
   
2,189
     
-
     
-
 
Total current assets
   
546,592
     
507,509
     
597,868
 
                         
Non-current assets
                       
Restricted deposit
   
412,752
     
410,733
     
405,306
 
Prepaid expenses
   
43,292
     
45,409
     
43,821
 
Fixed assets
   
3,999,905
     
4,133,262
     
4,009,008
 
Intangible assets
   
5,465
     
7,893
     
6,097
 
Total non-current assets
   
4,461,414
     
4,597,297
     
4,464,232
 
                         
Total assets
   
5,008,006
     
5,104,806
     
5,062,100
 
                         
Current liabilities
                       
Current maturities of loans from banks
   
249,287
     
246,032
     
203,819
 
Current maturities of loans from related parties
   
110,000
     
70,000
     
140,464
 
Trade payables
   
305,504
     
285,849
     
415,798
 
Other payables
   
17,187
     
26,538
     
5,649
 
Financial derivatives
   
-
     
4,250
     
1,191
 
Total current liabilities
   
681,978
     
632,669
     
766,921
 
                         
Non-current liabilities
                       
Loans from banks
   
3,180,408
     
3,362,423
     
3,187,873
 
Loans from related parties
   
7,764
     
110,800
     
54,764
 
Provision for dismantling and restoration
   
40,070
     
35,834
     
36,239
 
Deferred tax liabilities
   
108,045
     
77,050
     
89,298
 
Liabilities for employee benefits, net
   
160
     
160
     
160
 
Total non-current liabilities
   
3,336,447
     
3,586,267
     
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
   
343,623
     
239,912
     
280,887
 
Total equity
   
989,581
     
885,870
     
926,845
 
                         
Total liabilities and equity
   
5,008,006
     
5,104,806
     
5,062,100
 


 
Dorad Energy Ltd.
Interim Condensed Statements of Profit and Loss

   
For the three months ended
   
Year ended
 
   
March 31
   
December 31
 
   
2018
   
2017
   
2017
 
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
   
NIS thousands
   
NIS thousands
   
NIS thousands
 
Revenues
   
684,852
     
674,687
     
2,523,263
 
                         
Operating costs of the Power Plant
                       
                         
Energy costs
   
146,073
     
146,028
     
616,221
 
Electricity purchase and infrastructure services
   
326,627
     
330,409
     
1,212,431
 
Depreciation and amortization
   
52,169
     
51,446
     
208,705
 
Other operating costs
   
37,294
     
32,618
     
122,345
 
                         
Total operating cost of Power Plant
   
562,163
     
560,501
     
2,159,702
 
                         
Profit from operating the Power Plant
   
122,689
     
114,186
     
363,561
 
                         
General and administrative expenses
   
5,278
     
4,071
     
18,712
 
                         
Operating profit
   
117,411
     
110,115
     
344,849
 
                         
Financing income
   
4,231
     
498
     
3,195
 
Financing expenses
   
40,159
     
60,915
     
245,122
 
                         
Financing expenses, net
   
35,928
     
60,417
     
241,927
 
                         
Profit before taxes on income
   
81,483
     
49,698
     
102,922
 
                         
Taxes on income
   
18,747
     
11,432
     
23,681
 
                         
Profit for the period
   
62,736
     
38,266
     
79,241
 


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, 2018 (Unaudited)
                             
                               
Balance as at January 1, 2018 (Audited)
   
11
     
642,199
     
3,748
     
280,887
     
926,845
 
                                         
Profit for the period
   
-
     
-
     
-
     
62,736
     
62,736
 
                                         
Balance as at March 31, 2018 (Unaudited)
   
11
     
642,199
     
3,748
     
343,623
     
989,581
 
                                         
For the three months ended March 31, 2017 (Unaudited)
                                       
                                         
Balance as at  January 1, 2017 (Audited)
   
11
     
642,199
     
3,748
     
201,646
     
847,604
 
                                         
Profit for the period
   
-
     
-
     
-
     
38,266
     
38,266
 
                                         
Balance as at March 31, 2017 (Unaudited)
   
11
     
642,199
     
3,748
     
239,912
     
885,870
 
 
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 three months ended
   
Year ended
 
   
March 31
   
December 31
 
   
2018
   
2017
   
2017
 
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
   
NIS thousands
   
NIS thousands
   
NIS thousands
 
Cash flows from operating activities:
                 
Profit for the period
   
62,736
     
38,266
     
79,241
 
                         
Adjustments:
                       
Depreciation and amortization and fuel consumption
   
52,306
     
70,090
     
286,542
 
Taxes on income
   
18,747
     
11,432
     
23,681
 
Financing expenses, net
   
35,928
     
60,417
     
241,927
 
     
106,981
     
141,939
     
552,150
 
                         
Change in trade receivables
   
44,727
     
20,521
     
(35,465
)
Change in other receivables
   
12,736
     
(18,356
)
   
(84,857
)
Change in trade payables
   
(118,786
)
   
(6,279
)
   
123,045
 
Change in other payables
   
11,538
     
17,392
     
(2,669
)
     
(49,785
)
   
13,278
     
54
 
                         
Net cash flows provided by operating activities
   
119,932
     
193,483
     
631,445
 
                         
Cash flows used in investing activities
                       
Proceeds from (payment for) settlement of financial derivatives
   
74
     
(1,849
)
   
(10,596
)
Insurance proceeds in respect of damage to fixed asset
   
12,650
     
-
     
38,742
 
Investment in long-term restricted deposits
   
(5,158
)
   
(21,000
)
   
(34,000
)
Release of long-term restricted deposit
   
-
     
13,218
     
25,790
 
Investment in fixed assets
   
(30,951
)
   
(31,982
)
   
(121,361
)
Investment in intangible assets
   
(119
)
   
(31
)
   
(413
)
Interest received
   
777
     
498
     
1,268
 
                         
Net cash flows used in investing activities
   
(22,727
)
   
(41,146
)
   
(100,570
)
                         
Cash flows from financing activities:
                       
Repayment of loans from related parties
   
(62,802
)
   
(39,628
)
   
(39,628
)
Repayment of loans from banks
   
-
     
-
     
(161,668
)
Interest paid
   
(18,011
)
   
(15,682
)
   
(227,530
)
                         
Net cash flows used in financing activities
   
(80,813
)
   
(55,310
)
   
(428,826
)
                         
Net increase in cash and cash equivalents for the period
   
16,392
     
97,027
     
102,049
 
                         
Effect of exchange rate fluctuations on cash and cash equivalents
   
255
     
155
     
1,166
 
                         
Cash and cash equivalents at beginning of period
   
184,182
     
80,967
     
80,967
 
                         
Cash and cash equivalents at end of period
   
200,829
     
178,149
     
184,182