TEL-AVIV, Israel, December 21, 2016 /PRNewswire/ --
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 by the Israeli Public Utilities
Authority - Electricity (the "Electricity Authority") of its
decision concerning the tariff updates for 2017 (the
"Decision").
The Decision follows the previously announced scheduling of a
hearing (the "Hearing") concerning possible changes in
tariffs, including possible reductions in the electricity
production tariff of approximately 8%. The electricity production
tariff is used by Dorad Energy Ltd. ("Dorad"), in which the
Company indirectly holds 9.375%, as the basis for the price charged
for the electricity it provides. Based on Dorad's financial
statements for the period ended September
30, 2016, Dorad expected that the previously discussed
reduction would have a material adverse impact on Dorad's cash
flows, its profits and on its coverage ratios and that from the
beginning of 2017 it may not be able to meet the coverage ratios,
specifically for distributions to its shareholders.
On December 19, 2016, following
the Hearing, the Electricity Authority published the Decision in
which, among other things, it determined to limit the reduction in
the electricity production tariff to approximately 0.45% and it
states that it will not further update the tariffs until
December 2017.
Ran Fridrich, CEO and director of Ellomay commented: "We are
pleased with the decision of the Electricity Authority, eliminating
almost completely the proposed tariff reductions. We expect that
the new tariff, which is set for at least one year, will enable
Dorad to meet the financial covenants for distribution to its
shareholders, including Dori Energy, in which we own 50%".
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". 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 and approximately 7.9MW of
photovoltaic power plants in Spain;
- 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; and
- 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.
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: anatb@ellomay.com
SOURCE Ellomay Capital Ltd