Ellomay’s 2023 net profit goes up despite revenue drop

Israeli renewables developer and power producer Ellomay Capital Ltd (TASE:ELLO) closed 2023 with a net profit of EUR 600,000 (USD 555,988), marking an increase from EUR 100,000 a year ago even though its revenues suffered from lower electricity prices, mostly in Spain.

At EUR 18.8 million, earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by 9.6% from a year earlier, mainly due to a loss from discontinued operations, the company said on Friday.

Ellomay attributed a 6.5% year-on-year drop in its annual revenues to a decline in electricity prices in Spain and the lower output at plants in the Iberian country due to maintenance and upgrades of the main transmission line between Spain and Portugal. According to its estimates, those effects caused a roughly EUR-1-million decline in revenues but was partly offset by the contribution of revenues from biogas production in the Netherlands.

Ellomay’s operating expenses of EUR 22.9 million were slightly lower than those in the prior year, while project development costs rose to EUR 4.5 million from EUR 3.8 million as expenses related to solar projects in the US, Italy, and Israel rose.

At end-2023, Ellomay had 35.9 MW of photovoltaic (PV) parks in Spain and a 9-MW plant in its home country. The company also owns 50% of the 300-MW Talasol solar complex in Spain and holds a 9.375% indirect interest in Dorad Energy, a compatriot operating an 850-MW solar farm in Israel.

(USD 1.0 = EUR 0.927)

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