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

TEL-AVIV, Israel, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Ellomay Capital Ltd. (NYSE American; TASE: ELLO) ("Ellomay" or the "Company"), a renewable energy and power generator and developer of renewable energy and power projects in Europe, USA and Israel, today reported its unaudited consolidated financial results for the three and nine month periods ended September 30, 2024.

Financial Highlights

   -- Total assets as of September 30, 2024 amounted to approximately EUR640 
      million, compared to total assets as of December 31, 2023 of 
      approximately EUR612.9 million. 
 
   -- Revenues1 for the three months ended September 30, 2024 were 
      approximately EUR12.3 million, compared to revenues of approximately 
      EUR15.4 million for the three months ended September 30, 2023. Revenues 
      for the nine months ended September 30, 2024 were approximately EUR31.8 
      million, compared to revenues of approximately EUR40.4 million for the 
      nine months ended September 30, 2023. 
 
   -- Profit from continuing operations for the three months ended September 
      30, 2024 was approximately EUR6.6 million, compared to profit from 
      continuing operations of approximately EUR5.8 million for the three 
      months ended September 30, 2023. Profit from continuing operations for 
      the nine months ended September 30, 2024 was approximately EUR3.2 million, 
      compared to profit from continuing operations of approximately EUR10.4 
      million for the nine months ended September 30, 2023. 
 
   -- Profit for the three months ended September 30, 2024 was approximately 
      EUR6.6 million, compared to profit of approximately EUR5.9 million for 
      the three months ended September 30, 2023. Profit for the nine months 
      ended September 30, 2024 was approximately EUR3.3 million, compared to 
      profit of approximately EUR10.4 million for the nine months ended 
      September 30, 2023. 
 
   -- EBITDA for the three months ended September 30, 2024 was approximately 
      EUR11 million, compared to EBITDA of approximately EUR11.6 million for 
      the three months ended September 30, 2023. EBITDA for the nine months 
      ended September 30, 2024 was approximately EUR17.6 million, compared to 
      EBITDA of approximately EUR21.3 million for the nine months ended 
      September 30, 2023. See below under "Use of Non-IFRS Financial Measures" 
      for additional disclosure concerning EBITDA. 
 
   -- On December 31, 2023, the Company executed an agreement to sell its 
      holdings in the 9 MW solar plant located in Talmei Yosef. The sale was 
      consummated on June 3, 2024, and the net consideration received at 
      closing was approximately NIS 42.6 million (approximately EUR10.6 
      million). In connection with the sale, the Company presents the results 
      of this solar plant as a discontinued operation and the results for the 
      three and nine months ended September 30, 2023 were adjusted accordingly. 

Financial Overview for the Nine Months Ended September 30, 2024

   -- Revenues1 were approximately EUR31.8 million for the nine months ended 
      September 30, 2024, compared to approximately EUR40.4 million for the 
      nine months ended September 30, 2023. This decrease mainly results from a 
      reduction in electricity prices in Spain between February and May 2024, 
      partially offset by income generated by our 20 MW solar power plants in 
      Italy which were connected to the grid during 2024. The decrease is also 
      due to loss of revenues in connection with the fire near the Talasol 
      Solar S.L. (300 MV solar) ("Talasol") and Ellomay Solar S.L. (28 MV 
      solar) ("Ellomay Solar") facilities in Spain in July 2024. In connection 
      with such loss of revenues, the Company recorded an amount of 
      approximately EUR1.2 million as 'other income' for the nine months ended 
      September 30, 2024, based on compensation expected to be received from 
      the insurance for loss of income. 
 
   -- Operating expenses were approximately EUR14.5 million for the nine months 
      ended September 30, 2024, compared to approximately EUR17.4 million for 
      the nine months ended September 30, 2023. This decrease mainly results 
      from a decrease in direct taxes on electricity production paid by the 
      Company's Spanish subsidiaries as a result of reduced electricity prices. 
      The operating expenses of the Company's Spanish subsidiaries for the nine 
      months ended September 30, 2023 were impacted by the Spanish RDL 17/2022, 
      which established the reduction of returns on the electricity generating 
      activity of Spanish production facilities that do not emit greenhouse 
      gases, accomplished through payments of a portion of the revenues by the 
      production facilities to the Spanish government. The increased expenses 
      during the nine months ended September 30, 2023 resulting from this 
      impact, were partially offset by lower costs in connection with the 
      acquisition of feedstock by our Dutch biogas plants. Depreciation and 
      amortization expenses were approximately EUR12.3 million for the nine 
      months ended September 30, 2024, compared to approximately EUR11.7 
      million for the nine months ended September 30, 2023. 
 
   -- Project development costs were approximately EUR3.3 million for the nine 
      months ended September 30, 2024, compared to approximately EUR2.4 million 
      for the nine months ended September 30, 2023. The increase in project 
      development costs results mainly from increased consultancy expenses in 
      connection with business development efforts. 
 
   -- General and administrative expenses were approximately EUR4.7 million for 
      the nine months ended September 30, 2024, compared to approximately EUR4 
      million for the nine months ended September 30, 2023. The increase in 
      general and administrative expenses is mostly due to higher consultancy 
      expenses. 
 
   -- Share of profits of equity accounted investee, after elimination of 
      intercompany transactions, was approximately EUR5.3 million for the nine 
      months ended September 30, 2024, compared to approximately EUR4.6 million 
      for the nine months ended September 30, 2023. The increase in share of 
      profits of equity accounted investee was mainly due to the increase in 
      revenues of Dorad Energy Ltd. due to higher quantities produced, 
      partially offset by an increase in operating expenses in connection with 
      the increased production. 
 
   -- Other income, net was approximately EUR2.9 million for the nine months 
      ended September 30, 2024, compared to EUR0 for the nine months ended 
      September 30, 2023. The income was recognized based on compensation 
      expected to be received from insurance in connection with the fire near 
      the Talasol and Ellomay Solar facilities in Spain in July 2024, net of 
      impairment expenses related to the damaged fixed assets. The amount to be 
      received due to loss of income is approximately EUR1.2 million. 
 
   -- Financing expense, net was approximately EUR2 million for the nine months 
      ended September 30, 2024, compared to financing income, net of 
      approximately EUR0.3 million for the nine months ended September 30, 
      2023. The increase in financing expenses, net, was mainly attributable to 
      lower income resulting from exchange rate differences that amounted to 
      approximately EUR5.2 million for the nine months ended September 30, 
      2024, compared to approximately EUR8 million for the nine months ended 
      September 30, 2023, an aggregate change of approximately EUR2.8 million. 
      The exchange rate differences were mainly recorded in connection with the 
      New Israeli Shekel ("NIS") cash and cash equivalents and the Company's 
      NIS denominated debentures and were caused by the 3.5% devaluation of the 
      NIS against the euro during the nine months ended September 30, 2024, 
      compared to a devaluation of 8% during the nine months ended September 
      30, 2023. The increase in financing expenses for the nine months ended 
      September 30, 2024 was also due to increased interest expenses mainly 
      resulting from the issuance of the Company's Series F Debentures in 
      January, April and August 2024. These increases in financing expenses 
      were partially offset by an increase in financing income of approximately 
      EUR2.6 million in connection with derivatives and warrants in the nine 
      months ended September 30, 2024, compared to the nine months ended 
      September 30, 2023. 
 
   -- Tax benefit was approximately EUR0.1 million for the nine months ended 
      September 30, 2024, compared to a tax benefit of approximately EUR0.6 
      million for the nine months ended September 30, 2023. 
 
   -- Profit from continuing operations for the nine months ended September 30, 
      2024 was approximately EUR3.2 million, compared to profit from continuing 
      operations of approximately EUR10.4 million for the nine months ended 
      September 30, 2023. 
 
   -- Profit from discontinued operation (net of tax) for the nine months ended 
      September 30, 2024 was approximately EUR80 thousand, compared to profit 
      from discontinued operation of approximately EUR70 thousand for the nine 
      months ended September 30, 2023. 
 
   -- Profit for the nine months ended September 30, 2024 was approximately 
      EUR3.3 million, compared to a profit of approximately EUR10.4 million for 
      the nine months ended September 30, 2023. 
 
   -- Total other comprehensive income was approximately EUR2.6 million for the 
      nine months ended September 30, 2024, compared to total other 
      comprehensive income of approximately EUR31.6 million for the nine months 
      ended September 30, 2023. The change in total other comprehensive income 

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