Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three and Nine Months Ended September 30, 2017

TEL AVIV, Israel, Nov. 28, 2017 /PRNewswire/ -- 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.


                                                                                                        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                                          1,626,648          1,493,139         575,893            494,175         2,005,416
    Power Plant
                                                                                                                           ---


    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
                                                  -------            -------          -------            -------             ------

Contact:
Kalia Weintraub
CFO
Tel: +972 (3) 797-1111
Email: miria@ellomay.com

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