Ellomay(US:ELLO)2025-09-30 20:40Financial Performance - Total revenues for the six months ended June 30, 2025, were €20,136 thousand, an increase of 3.5% compared to €19,456 thousand for the same period in 2024[5] - Operating profit (loss) for the period was €(2,369) thousand, compared to €(1,804) thousand in the prior year, indicating a decline in operational performance[5] - The company reported a loss from continuing operations of €(1,576) thousand for the six months ended June 30, 2025, an improvement from €(3,426) thousand in the same period of 2024[5] - The company reported a profit of €364,000 for the six months ended June 30, 2025, contrasting with a loss of €1,576,000 for the same period in 2024[12] - The company reported a loss before taxes of €3,347 thousand for the six months ended June 30, 2025, compared to a loss of €4,414 thousand for the same period in 2024, indicating an improvement in financial performance[83] Cash and Liquidity - Cash and cash equivalents increased to €46,500 thousand as of June 30, 2025, up from €41,134 thousand at the end of 2024, reflecting improved liquidity[4] - Cash flows from operating activities for the six months ended June 30, 2025, provided €5,053,000, compared to €468,000 for the same period in 2024[13] - As of June 30, 2025, cash and cash equivalents totaled €171,511,000, up from €139,747,000 at the end of the previous period[12] - As of June 30, 2025, short-term restricted cash increased to €13,930 thousand from €656 thousand in December 2024, while long-term restricted cash decreased to €13,128 thousand from €17,052 thousand[41] Assets and Liabilities - Total assets as of June 30, 2025, were €729,314 thousand, a rise from €677,257 thousand at the end of 2024, indicating growth in the company's asset base[4] - Total liabilities increased to €583,093 thousand as of June 30, 2025, compared to €547,972 thousand at the end of 2024, suggesting a rise in financial obligations[4] - The carrying amount of non-current liabilities, including debentures and loans, totaled €523,256,000 as of June 30, 2025[72] Equity and Shareholder Value - The share capital remained stable at €25,613 thousand, while the share premium slightly increased to €86,275 thousand as of June 30, 2025[6] - The accumulated deficit decreased to €(11,251) thousand from €(11,561) thousand at the beginning of the year, indicating a reduction in losses attributable to shareholders[6] - Total equity attributed to shareholders of the company increased to €119,141 thousand as of June 30, 2025, compared to €118,622 thousand at the end of 2024, indicating a slight growth in shareholder value[4] Investments and Projects - As of June 30, 2025, the Company owns eleven solar plants with a total installed capacity of approximately 35.9 MW in Spain, 300 MW in Talasol, 38 MW in Italy, and 27 MW in Texas, USA[15] - The Company indirectly owns 51% of solar projects in Italy with an aggregate capacity of 160 MW that have commenced construction, and 100% of projects with an aggregate capacity of 134 MW that have reached Ready to Build status[16] - The Company is developing additional solar projects in Italy, the USA, Spain, and Israel, indicating ongoing market expansion efforts[16] - Two solar projects in Texas with a total capacity of approximately 27 MW were placed in service in December 2024, and an additional 11 MW project was connected to the grid in July 2025[66] - In Italy, one solar plant with an 18 MW capacity was connected to the grid in January 2025, and construction on additional projects totaling 160 MW has commenced[67] Financing and Debt - In February 2025, the Company issued Series G Debentures amounting to NIS 214,479,000 (approximately €56.7 million), with a fixed interest rate of 6.34% per year, repayable in seven non-equal installments from 2026 to 2032[18][20] - The Series G Deed of Trust includes financial covenants requiring the Company's adjusted balance sheet equity to be no less than €80 million for two consecutive quarters[23] - The Company is required to maintain a Series G Ratio of Net Financial Debt to Adjusted EBITDA not higher than 11 for three consecutive quarters to avoid immediate repayment provisions[23] - The company entered into a $5 million revolving loan agreement in September 2025, with a term of up to one year[97] Legal and Regulatory Matters - The company is involved in ongoing legal proceedings regarding the sale of shares in Dorad, with a preliminary hearing scheduled for November 11, 2025[56] - The provision for legal claims increased significantly to €2,218 thousand as of June 30, 2025, from €515 thousand as of December 31, 2024, highlighting potential legal challenges[80] - The company plans to contest a consultancy fee claim, which is included in the provision for legal claims, indicating proactive management of potential liabilities[80] Operational Challenges - Dorad's revenues in June 2025 decreased by approximately 22% compared to the same month in the previous year due to the ongoing conflict in Israel[32] - The Company has not experienced significant impacts from the war in Israel on its operating facilities located outside of Israel, primarily in Spain, Italy, the Netherlands, and the USA[32] - The company has a seasonal cycle in solar power production, with lower output during winter months due to reduced sunlight[39] Miscellaneous - The company’s management has made significant judgments in applying accounting policies, which may affect reported amounts of assets and liabilities[38] - A right-of-use asset of €7,375 thousand has been recognized for leases of land, with a corresponding lease liability[91] - The company's lease liabilities total €33,744 thousand, with €791 thousand due within one year[93]