Exhibit 99.1
 

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

On November 29, 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 September 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 December 27, 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 September 30, 2018 - approximately NIS 730.9 million.
 
·
Dorad’s unaudited operating profit for the three months ended June 30, 2018 - approximately NIS 161.2 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 September 30, 2018, 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, 2017 and as of and for the three and nine month periods ended September 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


   
September 30
   
September 30
   
December 31
 
   
2018
   
2017
   
2017
 
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
   
NIS thousands
   
NIS thousands
   
NIS thousands
 
Current assets
                 
Cash and cash equivalents
   
284,094
     
308,106
     
184,182
 
Trade receivables
   
254,045
     
296,623
     
330,397
 
Other receivables
   
38,579
     
82,018
     
83,289
 
Pledged deposit
   
3,508
     
-
     
-
 
Total current assets
   
580,226
     
686,747
     
597,868
 
                         
Non-current assets
                       
Restricted deposit
   
420,808
     
395,661
     
405,306
 
Prepaid expenses
   
42,233
     
44,350
     
43,821
 
Fixed assets
   
3,927,348
     
4,058,427
     
4,009,008
 
Intangible assets
   
3,961
     
6,683
     
6,097
 
Total non-current assets
   
4,394,350
     
4,505,121
     
4,464,232
 
Total assets
   
4,974,576
     
5,191,868
     
5,062,100
 
                         
Current liabilities
                       
Current maturities of loans from banks
   
255,941
     
252,000
     
203,819
 
Current maturities of loans from related parties
   
110,000
     
70,000
     
140,464
 
Trade payables
   
259,782
     
413,988
     
415,798
 
Other payables
   
19,046
     
4,628
     
5,649
 
Financial derivatives
   
-
     
3,372
     
1,191
 
Total current liabilities
   
644,769
     
743,988
     
766,921
 
                         
Non-current liabilities
                       
Loans from banks
   
3,108,089
     
3,274,223
     
3,187,873
 
Loans from related parties
   
15,258
     
120,404
     
54,764
 
Provision for dismantling and restoration
   
40,288
     
36,103
     
36,239
 
Deferred tax liabilities
   
123,774
     
89,473
     
89,298
 
Liabilities for employee benefits, net
   
160
     
160
     
160
 
Total non-current liabilities
   
3,287,569
     
3,520,363
     
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
   
396,280
     
281,559
     
280,887
 
Total equity
   
1,042,238
     
927,517
     
926,845
 
Total liabilities and equity
   
4,974,576
     
5,191,868
     
5,062,100
 
 

 
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
 
   
2018
   
2017
   
2018
   
2017
   
2017
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
   
NIS thousands
   
NIS thousands
   
NIS thousands
   
NIS thousands
   
NIS thousands
 
                                         
Revenues
   
1,990,177
     
1,927,460
     
730,891
     
716,171
     
2,523,263
 
                                         
Operating costs of the Power Plant
                                       
                                         
Energy costs
   
517,660
     
480,876
     
186,913
     
189,081
     
616,221
 
Electricity purchase and infrastructure services
   
880,927
     
914,350
     
288,898
     
310,939
     
1,212,431
 
Depreciation and amortization
   
163,977
     
150,147
     
56,572
     
52,513
     
208,705
 
Other operating costs
   
102,333
     
81,275
     
37,321
     
23,360
     
122,345
 
                                         
Total operating costs of Power Plant
   
1,664,897
     
1,626,648
     
569,704
     
575,893
     
2,159,702
 
                                         
Profit from operating the Power Plant
   
325,280
     
300,812
     
161,187
     
140,278
     
363,561
 
                                         
General and administrative expenses
   
15,401
     
13,497
     
4,873
     
4,921
     
18,712
 
                                         
Operating profit
   
309,879
     
287,315
     
156,314
     
135,357
     
344,849
 
                                         
Financing income
   
16,540
     
2,427
     
4,684
     
617
     
3,195
 
Financing expenses
   
176,550
     
185,974
     
55,670
     
35,230
     
245,122
 
                                         
Financing expenses, net
   
160,010
     
183,547
     
50,986
     
34,613
     
241,927
 
                                         
Profit before taxes on income
   
149,869
     
103,768
     
105,328
     
100,744
     
102,922
 
                                         
  Taxes on income
   
34,476
     
23,855
     
24,223
     
23,168
     
23,681
 
                                         
Profit for the period
   
115,393
     
79,913
     
81,105
     
77,576
     
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 nine months
                             
 ended September 30, 2018
                             
 (Unaudited)
                             
                               
Balance as at
                             
 January 1, 2018 (Audited)
   
11
     
642,199
     
3,748
     
280,887
     
926,845
 
                                         
Profit for the period
   
-
     
-
     
-
     
115,393
     
115,393
 
                                         
Balance as at
                                       
 September 30, 2018 (Unaudited)
   
11
     
642,199
     
3,748
     
396,280
     
1,042,238
 
                                         
For the nine months
                                       
 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 three months
                                       
 ended September 30, 2018
                                       
 (Unaudited)
                                       
                                         
Balance as at
                                       
 July 1, 2018 (Unaudited)
   
11
     
642,199
     
3,748
     
315,175
     
961,133
 
                                         
Profit for the period
   
-
     
-
     
-
     
81,105
     
81,105
 
                                         
Balance as at
                                       
 September 30, 2018 (Unaudited)
   
11
     
642,199
     
3,748
     
396,280
     
1,042,238
 
                                         
For the three months
                                       
 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 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 nine months ended
   
For the three months ended
   
Year ended
 
   
September 30
   
September 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 for the period
   
115,393
     
79,913
     
81,105
     
77,576
     
79,241
 
Adjustments:
                                       
Depreciation and amortization
                                       
 and fuel consumption
   
167,960
     
213,751
     
56,917
     
70,845
     
286,542
 
Taxes on income
   
34,476
     
23,855
     
24,223
     
23,168
     
23,681
 
Financing expenses, net
   
160,010
     
183,547
     
50,986
     
34,613
     
241,927
 
     
362,446
     
421,153
     
132,126
     
128,626
     
552,150
 
                                         
Change in trade receivables
   
76,488
     
(1,692
)
   
(6,539
)
   
(30,794
)
   
(35,465
)
Change in other receivables
   
23,955
     
(61,955
)
   
14,299
     
(1,600
)
   
(84,857
)
Change in trade payables
   
(161,484
)
   
107,940
     
(11,664
)
   
71,234
     
123,045
 
Change in other payables
   
16,985
     
(1,078
)
   
17,719
     
1,308
     
(2,669
)
     
(44,056
)
   
43,215
     
13,815
     
40,148
     
54
 
Net cash flows provided
                                       
 by operating activities
   
433,783
     
544,281
     
227,046
     
246,350
     
631,445
 
                                         
Cash flows used in
                                       
 investing activities
                                       
Proceeds (payment) for settlement of
                                       
 financial derivatives
   
4,997
     
(7,018
)
   
2,640
     
(2,385
)
   
(10,596
)
Insurance proceeds in respect of damage to fixed asset
   
20,619
     
15,444
     
1,181
     
15,444
     
38,742
 
Investment in long-term
                                       
 restricted deposit
   
(7,158
)
   
(21,000
)
   
-
     
-
     
(34,000
)
Release of long-term restricted
                                       
 deposit
   
-
     
25,790
     
-
     
-
     
25,790
 
Investment in fixed assets
   
(82,341
)
   
(87,136
)
   
(21,291
)
   
(33,350
)
   
(121,361
)
Investment in intangible assets
   
(141
)
   
(258
)
   
(18
)
   
-
     
(413
)
Interest received
   
2,461
     
1,847
     
978
     
617
     
1,268
 
Net cash flows used in
                                       
investing activities
   
(61,563
)
   
(72,331
)
   
(16,510
)
   
(19,674
)
   
(100,570
)
                                         
Cash flows used in
                                       
 financing activities:
                                       
Repayment of loans from
                                       
 related parties
   
(62,802
)
   
(39,628
)
   
-
     
-
     
(39,628
)
Repayment of loans from banks
   
(91,345
)
   
(85,112
)
   
-
     
-
     
(161,668
)
Interest paid
   
(119,803
)
   
(121,093
)
   
(356
)
   
(228
)
   
(227,530
)
Net cash flows used in
                                       
 financing activities
   
(273,950
)
   
(245,833
)
   
(356
)
   
(228
)
   
(428,826
)
                                         
Net increase in
                                       
cash and cash equivalents for
                                       
 the period
   
98,270
     
226,117
     
210,180
     
226,448
     
102,049
 
                                         
Effect of exchange rate fluctuations
                                       
 on cash and cash equivalents
   
1,642
     
1,022
     
88
     
345
     
1,166
 
Cash and cash equivalents at
                                       
 beginning of period
   
184,182
     
80,967
     
73,826
     
81,313
     
80,967
 
Cash and cash equivalents at
                                       
 end of period
   
284,094
     
308,106
     
284,094
     
308,106
     
184,182