News to Watch: Ellomay Capital Ltd. (NYSE:ELLO)

Ellomay Capital Ltd. (NYSE:ELLO) stock declared change of 97.12% away from 52-week low price and recently located move of -32.95% off 52-week high price. It has market worth of $152.71M. ELLO stock has been recorded -15.99% away from 50 day moving average and 19.40% away from 200 day moving average. Moving closer, we can see that shares have been trading 6.73% off 20-day moving average.

On March 31, 2020, Ellomay Capital Ltd. (NYSE American:ELLO) a renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel, released its unaudited financial results for the fourth quarter and year ended December 31, 2019.

Financial Highlights

  • The Company recorded revenues of approximately €19 million for the year ended December 31, 2019, up 5% from approximately €18.1 million for the year ended December 31, 2018. The revenue increase is mainly due to the commencement of operations of the Company’s waste-to-energy project in Oude Tonge, the Netherlands in June 2018 and relatively higher levels of radiation in Italy during 2019 compared to 2018.
  • Operating expenses were approximately €6.6 million for the year ended December 31, 2019, compared to approximately €6.3 million for the year ended December 31, 2018. The increase in operating expenses is mainly attributable to additional operating expenses from the commencement of operations at the Company’s waste-to-energy project in Oude Tonge, the Netherlands. Depreciation and amortization expenses were approximately €6.4 million for the year ended December 31, 2019, compared to approximately €5.8 million for the year ended December 31, 2018.
  • Project development costs were approximately €4.2 million for the year ended December 31, 2019, compared to approximately €2.9 million for the year ended December 31, 2018. The increase in project development costs is mainly attributable to consultancy expenses for the planned construction of a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel.
  • General and administrative expenses were approximately €3.8 million for the year ended December 31, 2019, compared to approximately €3.6 million for the year ended December 31, 2018 due to a slight increase in labor and consultancy expenses.
  • Share of profits of equity accounted investee, after elimination of intercompany transactions, was approximately €3.1 million in the year ended December 31, 2019, compared to approximately €2.5 million in the year ended December 31, 2018. The increase in the Company’s share of profit of equity accounted investee is mainly attributable to an increase in sales of electricity by Dorad and to lower financial expenses incurred by Dorad as a result of the CPI indexation of loans from banks and related parties.
  • Other expenses, net for the year ended December 31, 2019 were approximately €2.1 million, compared to other income, net of approximately €0.9 million in the year ended December 31, 2018. During 2019 the Company recorded expenses in the amount of approximately €2.1 million in connection with the announcement received from Gestore dei Servizi Elettrici (GSE) Italy’s energy regulation agency, by one of the Company’s Italian subsidiaries, claiming alleged non-compliance of the installed modules with the required certifications under the applicable regulation and raising the need to examine incentive eligibility implications (the GSE Claim). On December 20, 2019, the Company sold its holdings in this subsidiary. The Sale and Purchase Agreement governing the sale of the subsidiary provided for of up to €2.1 million of indemnification in connection with the GSE Claim and the Company recorded this potential payment as other expenses.

The Utilities sector company, Ellomay Capital Ltd. noticed change of 6.09% to $15.06 along volume of 24 shares in recent session compared to an average volume of 8.22K. The stock observed return of 42.55% in 5 days trading activity. The stock was at -23.90% over one month performance. ELLO’s shares are at 17.66% for the quarter and driving a 83.36% return over the course of the past year and is now at -18.40% since this point in 2018.

The average volatility for the week at 0.30% and for month was at 3.63%. There are 10.14M shares outstanding and 1.45M shares are floated in market. Right now the stock beta is 1.23.

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