Israel-based developer Ellomay Capital Ltd (TASE:ELLO) recorded a first-quarter net loss of EUR 1.9 million (USD 2.1m) in 2020, compared to a loss of around EUR 1 million a year back.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were in the red by EUR 0.6 million, versus a positive result of EUR 2.5 million in the same period last year, the company's first-quarter results show.
Revenues arrived at EUR 1.9 million, down by 59.6% year-on-year, mainly due to the sale of the company's Italian indirectly owned subsidiaries, which held a portfolio of some 22.6 MWp of photovoltaic (PV) parks in the country.
The sale of these plants narrowed operating expenses down to around EUR 1.1 million from EUR 1.7 million and cut depreciation expenses to EUR 0.7 million, compared to EUR 1.3 million in January-March 2019.
Total comprehensive income came at approximately EUR 12.2 million, up by 2,950% year-on-year.
Ellomay said that the COVID-19 pandemic left the biggest impact on its revenues. The company has four operating PV plants in Spain, which earn around 20% of its revenues from the sale of electricity to the grid. During the first quarter, prices of electricity fell in Spain, leaving Ellomay’s revenues shorter by some EUR 0.1 million compared to the same period last year.
The pandemic also caused delays in finalising the construction of the 300-MW Talasol PV project in Spain, but Ellomay expects the EPC contractor will meet the delivery deadline.
The Talasol plant will operate under a fixed-rate power purchase agreement (PPA) for 80% of its output, which makes Ellomay confident that the impact of electricity prices on the project will be minimal.
The company estimates that favourable electricity prices will enable the PPA signing for a further 650 MW of developing projects in Italy and Spain by the time they reach financial close.
Ellomay added that, based on expert assessment, it will take about two years for electricity prices to return to pre-crisis levels.
(EUR 1.0 = USD 1.129)
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