Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three Months
Ended March 31, 2016
 
Ellomay Capital Currently Indirectly Holds Approximately 9.4% of Dorad Energy Ltd.
 
Tel-Aviv, Israel, June 1, 2016 – 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, 2016 of Dorad Energy Ltd. (“Dorad”), in which Ellomay currently indirectly holds approximately 9.4%.

On May 31, 2016, 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.

As of March 31, 2016, Ellomay indirectly held 49% of Dori Energy and approximately 9.2% of Dorad. During May 2016, Ellomay exercised its option to acquire 1% of the share capital of Dori Energy, increasing its indirect holdings in Dori Energy to 50% and it indirect holdings in Dorad to approximately 9.4%.

The financial results of Dori Energy and of Dorad for the quarter ended March 31, 2016 were prepared in accordance with International Financial Reporting Standards. Ellomay will include its share of these results in its financial results for this period, which are currently expected to be published on or about June 9, 2016. 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 the Dorad financial results.

Dorad Financial Highlights
 
· Dorad’s unaudited revenues for the quarter ended March 31, 2016 - approximately NIS 609.9 million (or approximately USD 162 million, based on the exchange rate on March 31, 2016).
 
· Dorad’s unaudited operating profit for the quarter ended March 31, 2016 - approximately NIS 92.5 million (or approximately USD 24.5 million, based on the exchange rate on March 31, 2016).

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 months of January and February and part of the intermediate months (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, 2015 and as of and for the three month periods ended March 31, 2015 and 2016 is included at the end of this press release. Ellomay does not undertake to separately report Dorad’s financial results in a separate press release in the future. Neither Ellomay nor its independent public accountants have reviewed or consulted with the Dori Group, 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” and whose Series A Debentures are traded on the Tel Aviv Stock Exchange.  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 5.6MW of photovoltaic power plants in Spain and 85% of approximately 2.3MW of photovoltaic power plant in Spain; and
 
· Approximately 9.4% indirect interest in Dorad Energy Ltd., which owns and operates one of Israel’s largest private power plant with production capacity of approximately 850 MW, representing about 6%-8% of Israel’s total current electricity consumption.
 
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. 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: anatb@ellomay.com


Dorad Energy Ltd.

Condensed Interim Statement of Financial Position
 
   
March 31
   
March 31
   
December 31
 
   
2016
   
2015
   
2015
 
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
   
NIS thousands
   
NIS thousands
   
NIS thousands
 
Current assets
           
Cash and cash equivalents
   
302,470
     
334,572
     
51,894
 
Trade receivables
   
253,559
     
342,074
     
278,982
 
Other receivables
   
25,784
     
19,160
     
31,994
 
Pledged deposit
   
29,485
     
29,483
     
29,485
 
Financial derivatives
   
-
     
6,894
     
646
 
Total current assets
   
611,298
     
732,183
     
393,001
 
                         
Non-current assets
                       
Restricted deposit
   
334,525
     
270,062
     
335,085
 
Prepaid expenses
   
46,416
     
48,423
     
46,918
 
Fixed assets
   
4,335,607
     
4,537,446
     
4,386,971
 
Intangible assets
   
9,233
     
8,318
     
8,391
 
Total non-current assets
   
4,725,781
     
4,864,249
     
4,777,365
 
                         
Total assets
   
5,337,079
     
5,596,432
     
5,170,366
 
                         
Current liabilities
                       
Current maturities of loans from banks
   
215,188
     
176,235
     
170,722
 
Current maturities of loans from related parties
   
130,000
     
-
     
130,000
 
Trade payables
   
319,910
     
576,120
     
247,129
 
Other payables
   
19,737
     
66,695
     
16,906
 
Financial derivatives
   
4,798
     
-
     
-
 
Total current liabilities
   
689,633
     
819,050
     
564,757
 
                         
Non-current liabilities
                       
Loans from banks
   
3,297,603
     
3,453,636
     
3,316,740
 
Loans from related parties
   
403,557
     
488,572
     
396,259
 
Provision for dismantling and restoration
   
35,301
     
28,671
     
35,170
 
Deferred tax liabilities
   
70,826
     
47,485
     
60,882
 
Liabilities for employee benefits, net
   
160
     
105
     
160
 
Total non-current liabilities
   
3,807,447
     
4,018,469
     
3,809,211
 
                         
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
   
194,041
     
112,955
     
150,440
 
Total equity
   
839,999
     
758,913
     
796,398
 
                         
Total liabilities and equity
   
5,337,079
     
5,596,432
     
5,170,366
 
 


Dorad Energy Ltd.

Condensed Interim Statements of Earnings
 
   
For the three months ended
   
Year ended
 
   
March 31
   
December 31
 
   
2016
   
2015
   
2015
 
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
   
NIS thousands
   
NIS thousands
   
NIS thousands
 
Revenues
   
609,942
     
679,236
     
2,356,832
 
                         
Operating costs of the Power Plant
                       
                         
Energy costs
   
126,819
     
157,321
     
613,689
 
Electricity purchase and infrastructure services
   
304,355
     
334,686
     
1,000,947
 
Depreciation and amortization
   
51,339
     
52,410
     
209,953
 
Other operating costs
   
30,911
     
36,770
     
149,808
 
                         
Total operating costs of the Power Plant
   
513,424
     
581,187
     
1,974,397
 
                         
Profit from operating the Power Plant
   
96,518
     
98,049
     
382,435
 
                         
General and administrative expenses
   
4,058
     
7,991
     
25,681
 
                         
Operating profit
   
92,460
     
90,058
     
356,754
 
                         
Financing income
   
212
     
6,327
     
476
 
Financing expenses
   
39,127
     
6,846
     
216,808
 
                         
Financing expenses, net
   
(38,915
)
   
(519
)
   
(216,332
)
                         
Profit before taxes on income
   
53,545
     
89,539
     
140,422
 
                         
Taxes on income
   
9,944
     
24,209
     
37,607
 
                         
Net profit for the period
   
43,601
     
65,330
     
102,815
 


Dorad Energy Ltd.

Condensed Interim 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, 2016
                   
 (Unaudited)
                   
                     
Balance as at
                   
 January 1, 2016 (Audited)
   
11
     
642,199
     
3,748
     
150,440
     
796,398
 
                                         
Net profit for the period
   
-
     
-
     
-
     
43,601
     
43,601
 
                                         
Balance as at
                                       
 March 31, 2016
                                       
 (Unaudited)
   
11
     
642,199
     
3,748
     
194,041
     
839,999
 
 
For the three months
                   
 ended March 31, 2015
                   
 (Unaudited)
                   
                     
Balance as at
                   
 January 1, 2015 (Audited)
   
11
     
642,199
     
3,748
     
47,625
     
693,583
 
                                         
Net profit for the period
   
-
     
-
     
-
     
65,330
     
65,330
 
                                         
Balance as at
                                       
 March 31, 2015
                                       
 (Unaudited)
   
11
     
642,199
     
3,748
     
112,955
     
758,913
 
 
For the year ended
                   
 December 31, 2015
                   
(Audited)
                   
                     
Balance as at
                   
 January 1, 2015 (Audited)
   
11
     
642,199
     
3,748
     
47,625
     
693,583
 
                                         
Net profit for the period
   
-
     
-
     
-
     
102,815
     
102,815
 
                                         
Balance as at
                                       
 December 31, 2015 (Audited)
   
11
     
642,199
     
3,748
     
150,440
     
796,398
 



Dorad Energy Ltd.

Condensed Interim Statements of Cash Flows

   
For the three months ended
   
Year ended
 
   
March 31
   
December 31
 
   
2016
   
2015
   
2015
 
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
   
NIS thousands
   
NIS thousands
   
NIS thousands
 
Cash flows from operating activities:
                 
Profit for the period
   
43,601
     
65,330
     
102,815
 
Adjustments:
                       
Depreciation and amortization and fuel consumption
   
57,632
     
52,583
     
237,295
 
Taxes on income
   
9,944
     
24,210
     
37,607
 
Financing expenses, net
   
38,915
     
519
     
216,332
 
     
106,491
     
77,312
     
491,234
 
                         
Change in trade receivables
   
25,423
     
(13,636
)
   
49,693
 
Change in other receivables
   
6,211
     
(8,042
)
   
(20,876
)
Change in trade payables
   
73,640
     
199,605
     
(129,385
)
Change in other payables
   
2,907
     
6,363
     
(6,842
)
Change in employee benefits, net
   
-
     
-
     
55
 
     
108,181
     
184,290
     
(107,355
)
                         
Net cash flows provided by operating activities
   
258,273
     
326,932
     
486,694
 
                         
Cash flows used in investing activities
                       
Proceeds from (payment for) settlement of financial derivatives
   
(322
)
   
7,306
     
9,609
 
Payment of pledged deposit
   
-
     
38,679
     
38,679
 
Investment in fixed assets
   
(5,203
)
   
(380,881
)
   
(447,338
)
Investment in intangible assets
   
(1,481
)
   
(228
)
   
(1,767
)
Investment in long-term restricted deposit
   
-
     
(70,000
)
   
(135,000
)
Interest received
   
15
     
73
     
115
 
                         
Net cash flows used in investing activities
   
(6,991
)
   
(405,051
)
   
(535,702
)
                         
Cash flows from financing activities:
                       
Receipt of long-term loans from related parties
   
-
     
23,208
     
23,208
 
Receipt of long-term loans from banks
   
-
     
318,100
     
318,100
 
Repayment of loans from banks
   
-
     
-
     
(105,121
)
Interest paid
   
(602
)
   
(69
)
   
(206,032
)
                         
Net cash flows provided by (used in) financing activities
   
(602
)
   
341,239
     
30,155
 
                         
Net increase (decrease) in cash and cash equivalents for the period
   
250,680
     
263,120
     
(18,853
)
                         
Effect of exchange rate fluctuations on cash and cash
                       
 equivalents
   
(104
)
   
(326
)
   
(1,031
)
                         
Cash and cash equivalents at beginning of period
   
51,894
     
71,778
     
71,778
 
                         
Cash and cash equivalents at end of period
   
302,470
     
334,572
     
51,894