Ellomay Capital Ltd. (NYSE American: ELLO) (TASE: ELLO)Reports Results for the 4th Quarter and Full Year of 2k18

Keto egg fast

Ellomay Capital Ltd. (NYSE American: ELLO) (TASE: ELLO) (“Ellomay” or the “Company”), a renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel, recently stated its unaudited financial results for the three and twelve month periods ended December 31, 2k18.

Financial Highlights

  • Revenues were about €18.1M for the year ended December 31, 2k18, contrast to about €13.6M for the year ended December 31, 2k17. The raise in revenues is mainly a result of the beginning of operations of the Company’s two waste-to-energy projects (the “WtE Projects”) in the Netherlands (one in November 2k17 and the other in June 2k18) and the results for a full year of the photovoltaic plant in Talmei Yosef (the “Talmei Yosef PV Plant“), attained in October 2k17, partially offset by lower revenues in Italy because of relatively lower radiation levels in the year ended December 31, 2k18 contrast to the year ended December 31, 2k17.
  • Operating costs were about €6.3M for the year ended December 31, 2k18, contrast to about €2.5M for the year ended December 31, 2k17. The raise in operating costs is mainly attributable to additional operating costs resulting from the beginning of operations of the WtE Projects in the Netherlands, as WtE operations are characterized by higher operating costs contrast to PV operations, resulting from the components of raw materials and the costs of waste removal, and from the acquisition of the Talmei Yosef PV Plant. Depreciation costs were about €5.8M for the year ended December 31, 2k18, contrast to about €4.5M for the year ended December 31, 2k17.
  • Project development costs were about €2.9M for the year ended December 31, 2k18, contrast to about €2.7M for the year ended December 31, 2k17. The raise in project development costs is mainly attributable to consultancy costs in connection with the project to promote the construction of a 300 MW photovoltaic plant in the municipality of Talaván, Cáceres, Spain (the “Talasol Project“).
  • General and administrative costs were about €3.6M for the year ended December 31, 2k18, contrast to about €2.4M for the year ended December 31, 2k17. The raise in general and administrative costs resulted mainly from payment of about €0.4M following a VAT assessment agreement from previous years in Israel and related costs and from raised costs resulting from the beginning of operations of the WtE Projects in the Netherlands and the acquisition of the Talmei Yosef PV Plant.
  • Share of profits of equity accounted investee, after elimination of intercompany transactions, was about €2.5M in the year ended December 31, 2k18, contrast to about €1.5M in the year ended December 31, 2k17. The raise in the Company’s share of profit of equity accounted investee is mainly attributable to a boost in sales of electricity by Dorad because of raised production and to lower financial costs incurred by Dorad as a result of the CPI indexation of loans from banks and related parties.
  • Financing costs, net was about €2.1M for the year ended December 31, 2k18, contrast to about €9.2M for the year ended December 31, 2k17. The decline in financing costs was mainly because of: (i) the reevaluation of the Company’s euro/US$ forward transactions and marketable securities in the aggregate profit amount of about €0.5M for the year ended December 31, 2k18, contrast to a loss of about €3.2M for the year ended December 31, 2k17, and (ii) income in connection with exchange rate differences amounting to about €0.7M in the year ended December 31, 2k18, mainly in connection with the NIS denominated Debentures, contrast to costs in the amount of about €3.6M in the year ended December 31, 2k17, mainly in connection with US dollar denominated cash and marketable securities, resulting from exchange rate differences caused by the 14 percent revaluation of the euro against the US$ throughout 2k17. Following the change of presentation currency in 2k17, the Company converted the majority of its cash and marketable securities from US dollar to euro.
  • Taxes on income were about €0.2M in the year ended December 31, 2k18, contrast to about €0.4M in the year ended December 31, 2k17. This decline resulted mainly from the application of a tax incentive in the Netherlands applicable for companies that invest in energy-efficient technology, claimable upon filing the relevant tax return by reducing the amount of taxable profit.
  • Net profit was about €0.6M in the year ended December 31, 2k18, contrast to net loss of about €6.6M for the year ended December 31, 2k17.
  • Net profit per share was about €0.1 in the year ended December 31, 2k18, contrast to net loss per share of about €0.57 for the year ended December 31, 2k17.
  • Whole other comprehensive loss was about €1.2M for the year ended December 31, 2k18, contrast to whole other comprehensive loss of about €0.2M in the year ended December 31, 2k17. The change was mainly because of changes in fair value of cash flow hedges and from foreign currency translation differences on New Israeli Shekel denominated operations, as a result of fluctuations in the euro/NIS exchange rates.
  • Whole comprehensive loss was about €0.5M in the year ended December 31, 2k18, contrast to the whole comprehensive loss of about €6.9M in the year ended December 31, 2k17.
  • EBITDA was about €8.7M for the year ended December 31, 2k18, contrast to about €7.5M for the year ended December 31, 2k17.
  • Net cash from operating activities was about €6.6M for the year ended December 31, 2k18, contrast to about €2.3M for the year ended December 31, 2k17. The raise in net cash from operating activities is mainly attributable to interest payment received throughout 2k18 on a loan to equity accounted investee.
  • As of March 1, 2k19, the Company held about €29.8M in cash and cash equivalents, about €0.4M in marketable securities and about €6.9M in restricted short-term and long-term cash.

Ran Fridrich, CEO and a board member of Ellomay commented: “2k18 met our target presenting raised revenues, net profit and strong cash flow from operations, while we continue promoting our major development projects – Talasol and Manara PSP. We expect to begin the construction of the Talasol project throughout the 1st half of 2k19 and are diligently promoting the Manara PSP project towards financial closing.”

Information for the Company’s Series A and Series B Debenture Holders

As of December 31, 2k18, the Company’s Net Financial Debt (as such term is defined in the Deeds of Trust of the Company’s Debentures) was about €20.2M (consisting of about €69.8M of short-term and long-term debt from banks and other interest-bearing financial obligations and about €51.3M in connection with the Series A Debentures issuances (in January and September 2014) and the Series B Debentures issuance (in March 2k17), net of about €39M of cash and cash equivalents and marketable securities and net of about €61.9M of project finance and related hedging transactions of the Company’s auxiliaries).

About Finlay Morris

Finlay Morris is a fitness expert and fitness analyst over the 10 years. He is an academic teacher of Sports and Sciences and Nutritionist at the University of Denmark. Moreover, he is an Author of fitness articles on the cognitive processing of health and fitness club. He is working on a full-time basis at The Health Post Analyst.

View all posts by Finlay Morris →