Company Guidance For FY18 Confirmed At Q1
Edison | Jul 10, 2018 06:29AM ET
Over 2017, Ellomay Capital Ltd (NYSE:ELLO) made large investments in new projects and in acquisitions, which we expect to drive significant revenue and profit growth in 2018. Results for Q1 (normally weak due to seasonality) showed a 20% y-o-y growth in revenues and were in line with management expectations for FY18. We expect the following quarters to also show a pick-up in earnings. Looking beyond 2018, Ellomay has announced significant progress on Talasol, a large Spanish solar PV plant, which could reach financial close before the 2018 year-end. Our valuation of $11.0 per share implies c 28% potential upside.
Q1 revenues up 20% y-o-y and guidance confirmed
Q1 revenues were €3.0m, +20% y-o-y, driven mostly by new projects (Dutch biogas) and acquisition (Israel solar PV). EBITDA was €1.3m (vs €1.5m in Q117). Correcting for a €0.4m negative one-off impact, we calculate that EBITDA would have been up c 13% y-o-y. Ellomay reported a net loss of €0.4m (vs a loss of €1.7m in Q117), which we expect to turn into a FY net profit after two years of losses, thanks to the contribution of the (seasonally stronger) following quarters. We updated our estimates for results and to align the accounting treatment of Talmei Yosef project with the company’s. On an underlying basis we have reduced our FY18-20 net income forecasts by 7-9% post Q1. The company said that Q1 results were consistent with its previous forecasts for FY18 (€21.9m cash flow from the sale of electricity and gas, and total net cash flow from projects of €11.8m).
To read the entire report Please click on the pdf File Below:
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.