Ellomay Capital (ELLO)

Business description

Ellomay Capital owns an international portfolio of power generation assets comprising solar plants in Italy and Spain and a gas-fired power plant in Israel. It operates principally in regulated markets.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2015A 13.8 9.7 1.9 35.39 24.9 9.4
2016A 12.9 7.5 (1.3) (17.57) N/A 8.8
2017E 13.5 11.2 3.7 26.31 33.4 10.3
2018E 15.1 13.0 5.8 40.68 21.6 10.6

Last updated on 04/07/2017

Investment summary

Ellomay’s Q117 results reflected an improvement in solar radiation levels and higher spot power prices in Italy. Gross profit improved by 37% (Q117 vs Q116) and sequentially by 44% (Q117 vs Q416), although G&A costs increased by 26% as new project costs increased, so operating profit was down 12%. Ellomay continued to invest in the development of new projects in Israel, the Netherlands and Spain, with further newsflow expected on their development over the course of the year. Also of note was the strong cash generation over the quarter. We maintain our earnings forecasts and fair value per share at $10.93, which offers 25% upside to current levels.

Last updated on 03/07/2017

Industry outlook

Ellomay operates solar PV assets in Spain and Italy, and has an equity stake in a gas-fired power plant in Israel. All three markets have seen tariff reductions imposed by regulatory authorities and governments in recent years. Regulatory risk is the main potential negative driver of Ellomay's earnings, given that a high percentage of its earnings are derived from tariff subsidies. This aside, subsidised power generation provides attractive, steady cash flow for asset owners that will either be distributed or reinvested.

Last updated on 03/07/2017

Key management

Shlomo Nehama , Chairman
Ran Fridrich, CEO
Kalia Weintraub, CFO

Company address

9 Rothschild Boulevard
Tel Aviv
Israel
+972 3 7971111
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