Exhibit 99.1
 

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

On August 31, 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 June 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 September 25, 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 June 30, 2018 - approximately NIS 574.4 million.
 
·
Dorad’s unaudited operating profit for the three months ended June 30, 2018 - approximately NIS 41.4 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 June 30, 2018, 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, 2017 and as of and for the three and six month periods ended June 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


   
June 30
   
June 30
   
December 31
 
   
2018
   
2017
   
2017
 
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
   
NIS thousands
   
NIS thousands
   
NIS thousands
 
Current assets
                 
Cash and cash equivalents
   
73,826
     
81,313
     
184,182
 
Trade receivables
   
247,370
     
265,829
     
330,397
 
Other receivables
   
54,059
     
97,529
     
83,289
 
Pledged deposit
   
6,551
     
-
     
-
 
Total current assets
   
381,806
     
444,671
     
597,868
 
                         
Non-current assets
                       
Restricted deposit
   
420,717
     
393,657
     
405,306
 
Prepaid expenses
   
42,763
     
44,880
     
43,821
 
Fixed assets
   
3,974,402
     
4,099,540
     
4,009,008
 
Intangible assets
   
4,705
     
7,420
     
6,097
 
Total non-current assets
   
4,442,587
     
4,545,497
     
4,464,232
 
                         
Total assets
   
4,824,393
     
4,990,168
     
5,062,100
 
                         
Current liabilities
                       
Current maturities of loans from banks
   
212,945
     
203,415
     
203,819
 
Current maturities of loans from related parties
   
110,000
     
70,000
     
140,464
 
Trade payables
   
279,810
     
329,456
     
415,798
 
Other payables
   
4,915
     
22,822
     
5,649
 
Financial derivatives
   
-
     
7,298
     
1,191
 
Total current liabilities
   
607,670
     
632,991
     
766,921
 
                         
Non-current liabilities
                       
Loans from banks
   
3,103,655
     
3,287,991
     
3,187,873
 
Loans from related parties
   
12,047
     
116,812
     
54,764
 
Provision for dismantling and restoration
   
40,179
     
35,968
     
36,239
 
Deferred tax liabilities
   
99,549
     
66,305
     
89,298
 
Liabilities for employee benefits, net
   
160
     
160
     
160
 
Total non-current liabilities
   
3,255,590
     
3,507,236
     
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
   
315,175
     
203,983
     
280,887
 
Total equity
   
961,133
     
849,941
     
926,845
 
                         
Total liabilities and equity
   
4,824,393
     
4,990,168
     
5,062,100
 
 

Dorad Energy Ltd.
Interim Condensed Statements of Profit and Loss


   
For the six months ended
   
For the three months ended
   
Year ended
 
   
June 30
   
June 30
   
December 31
 
   
2018
   
2017
   
2018
   
2017
   
2017
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
   
NIS thousands
   
NIS thousands
   
NIS thousands
   
NIS thousands
   
NIS thousands
 
Revenues
   
1,259,285
     
1,211,289
     
574,434
     
536,602
     
2,523,263
 
                                         
Operating costs of the Power Plant
                                       
                                         
Energy costs
   
330,747
     
291,795
     
184,674
     
145,767
     
616,221
 
Electricity purchase and infrastructure services
   
592,030
     
603,411
     
265,403
     
273,001
     
1,212,431
 
Depreciation and amortization
   
107,404
     
97,634
     
55,235
     
46,189
     
208,705
 
Other operating costs
   
65,013
     
57,915
     
27,719
     
25,296
     
122,345
 
                                         
Total operating costs of Power Plant
   
1,095,194
     
1,050,755
     
533,031
     
490,253
     
2,159,702
 
                                         
Profit from operating the Power Plant
   
164,091
     
160,534
     
41,403
     
46,349
     
363,561
 
                                         
General and administrative expenses
   
10,529
     
8,576
     
5,251
     
4,505
     
18,712
 
                                         
Operating profit
   
153,562
     
151,958
     
36,152
     
41,844
     
344,849
 
                                         
Financing income
   
11,857
     
1,810
     
7,625
     
1,312
     
3,195
 
Financing expenses
   
120,880
     
150,744
     
80,721
     
89,829
     
245,122
 
                                         
Financing expenses, net
   
109,023
     
148,934
     
73,096
     
88,517
     
241,927
 
                                         
Profit (loss) before taxes on income
   
44,539
     
3,024
     
(36,944
)
   
(46,673
)
   
102,922
 
                                         
Tax benefit (Taxes on  income)
   
(10,251
)
   
(687
)
   
8,496
     
10,744
     
(23,681
)
                                         
Profit (loss) for the period
   
34,288
     
2,337
     
(28,448
)
   
(35,929
)
   
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 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 six months ended June 30, 2017 (Unaudited)
                                       
                                       
Balance as at January 1, 2017 (Audited)
   
11
     
642,199
     
3,748
     
201,646
     
847,604
 
                                         
Profit for the period
   
-
     
-
     
-
     
2,337
     
2,337
 
                                         
Balance as at June 30, 2017 (Unaudited)
   
11
     
642,199
     
3,748
     
203,983
     
849,941
 
                                         
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
 
                                         
For the three months ended June 30, 2017 (Unaudited)
                                       
                                         
Balance as at April 1, 2017 (Unaudited)
   
11
     
642,199
     
3,748
     
239,912
     
885,870
 
                                         
Loss for the period
   
-
     
-
     
-
     
(35,929
)
   
(35,929
)
                                         
Balance as at June 30, 2017 (Unaudited)
   
11
     
642,199
     
3,748
     
203,983
     
849,941
 
                                         
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 six months ended
   
For the three months ended
   
Year ended
 
   
June 30
   
June 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 (loss) for the period
   
34,288
     
2,337
     
(28,448
)
   
(35,929
)
   
79,241
 
Adjustments:
                                       
Depreciation and amortization and fuel consumption
   
111,043
     
142,906
     
58,737
     
72,816
     
286,542
 
Taxes on income (tax  benefit)
   
10,251
     
687
     
(8,496
)
   
(10,744
)
   
23,681
 
Financing expenses, net
   
109,023
     
148,934
     
73,096
     
88,517
     
241,927
 
     
230,317
     
292,527
     
123,337
     
150,589
     
552,150
 
                                         
Change in trade receivables
   
83,026
     
29,102
     
38,300
     
8,581
     
(35,465
)
Change in other receivables
   
9,657
     
(60,355
)
   
(3,080
)
   
(41,999
)
   
(84,857
)
Change in trade payables
   
(149,819
)
   
36,707
     
(31,034
)
   
42,984
     
123,045
 
Change in other payables
   
(733
)
   
(2,387
)
   
(12,272
)
   
(19,779
)
   
(2,669
)
     
(57,869
)
   
3,067
     
(8,086
)
   
(10,213
)
   
54
 
                                       
Net cash flows provided by operating activities
   
206,736
     
297,931
     
86,803
     
104,447
     
631,445
 
                                         
Cash flows used in investing activities
                                       
Proceeds (payment) for settlement of financial derivatives
   
2,357
     
(4,633
)
   
2,284
     
(2,784
)
   
(10,596
)
Insurance proceeds in respect of damage to fixed asset
   
19,438
     
-
     
6,788
     
-
     
38,742
 
Investment in long-term restricted deposit
   
(7,158
)
   
(21,000
)
   
(2,000
)
   
-
     
(34,000
)
Release of long-term restricted deposit
   
-
     
25,790
     
-
     
12,572
     
25,790
 
Investment in fixed assets
   
(61,050
)
   
(53,786
)
   
(30,100
)
   
(21,804
)
   
(121,361
)
Investment in intangible assets
   
(123
)
   
(258
)
   
(4
)
   
(227
)
   
(413
)
Interest received
   
1,484
     
1,230
     
708
     
732
     
1,268
 
                                       
Net cash flows used in investing activities
   
(45,052
)
   
(52,657
)
   
(22,324
)
   
(11,511
)
   
(100,570
)
                                         
Cash flows from financing activities:
                                       
Repayment of loans from related parties
   
(62,802
)
   
(39,628
)
   
-
     
-
     
(39,628
)
Repayment of loans from banks
   
(91,345
)
   
(85,112
)
   
(91,345
)
   
(85,112
)
   
(161,668
)
Interest paid
   
(119,447
)
   
(120,865
)
   
(101,436
)
   
(105,183
)
   
(227,530
)
Net cash flows used in financing activities
   
(273,594
)
   
(245,605
)
   
(192,781
)
   
(190,295
)
   
(428,826
)
                                         
Net increase (decrease) in cash and cash equivalents for the period
   
(111,910
)
   
(331
)
   
(128,302
)
   
(97,359
)
   
102,049
 
                                         
Effect of exchange rate fluctuations on cash and cash equivalents
   
1,554
     
677
     
1,299
     
523
     
1,166
 
Cash and cash equivalents at beginning of period
   
184,182
     
80,967
     
200,829
     
178,149
     
80,967
 
Cash and cash equivalents at end of period
   
73,826
     
81,313
     
73,826
     
81,313
     
184,182