Ellomay Capital Reports Results for the Three and Nine Months Ended September 30, 2024

Core Viewpoint - Ellomay Capital Ltd. reported a decline in revenues and profits for the nine months ended September 30, 2024, primarily due to decreased electricity prices in Spain and operational challenges, including fire damage to projects. However, the company continues to develop new solar projects in the USA and Italy, which may provide future growth opportunities. Financial Performance - Total assets as of September 30, 2024, were approximately €640 million, up from €612.9 million as of December 31, 2023 [2] - Revenues for the three months ended September 30, 2024, were approximately €12.3 million, down from €15.4 million for the same period in 2023. For the nine months ended September 30, 2024, revenues were approximately €31.8 million, compared to €40.4 million in 2023 [2][10] - Profit from continuing operations for the three months ended September 30, 2024, was approximately €6.6 million, compared to €5.8 million in 2023. For the nine months, profit from continuing operations was approximately €3.2 million, down from €10.4 million in 2023 [2][10] - EBITDA for the three months ended September 30, 2024, was approximately €11 million, compared to €11.6 million in 2023. For the nine months, EBITDA was approximately €17.6 million, down from €21.3 million in 2023 [2][10] Operational Highlights - The company executed an agreement to sell its holdings in a 9 MW solar plant in Talmei Yosef, with net consideration of approximately NIS 42.6 million (about €10.6 million) received at closing [2] - In the USA, the company is developing solar projects with a total capacity of approximately 49 MW, with construction of the first four projects beginning in early 2024 [5] - In Italy, the company has a portfolio of 462 MW solar projects, with 20 MW currently operating and 18 MW awaiting grid connection. Revenues from electricity sales in Italy for the third quarter of 2024 were approximately €1.7 million [13] Market Conditions - The decrease in revenues was mainly attributed to low electricity prices in Spain, which were negative at times during the first half of 2024. Additionally, fire damage in July 2024 resulted in a revenue loss of approximately €1.2 million, which is expected to be covered by insurance [4][10] - Operating expenses for the nine months ended September 30, 2024, were approximately €14.5 million, down from €17.4 million in 2023, primarily due to reduced direct taxes on electricity production [10] - The company’s Dutch biogas plants temporarily exited the subsidy regime, impacting cash flow, but have since returned to the subsidy regime [3] Comprehensive Income - Total comprehensive income for the nine months ended September 30, 2024, was approximately €5.9 million, compared to €42 million in 2023 [3][10] - Other income for the nine months ended September 30, 2024, was approximately €2.9 million, recognized based on expected compensation from insurance related to the fire incident [10]