Ellomay Capital Completes Separation from Luzon Energy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 30 2026
0mins
Ellomay Capital announced the results of the separation process with respect to Ellomay Luzon Energy Infrastructures, currently held in equal parts by the company and Amos Luzon Development and Energy Group. Ellomay Luzon Energy's main asset is its holding of 33.75% of Dorad Energy Ltd. The separation process was conducted on March 27, 2026, following the Israeli court's ruling and the appointment of Judge Hila Gerstel to act as the ruler regarding the separation process. The separation process resulted in the Luzon Group committing to acquire the Ellomay Luzon Energy shares indirectly held by the company at a Dorad valuation of NIS 4.4B. As of the date hereof, based on the company's indirect holdings in Dorad and the current value of 50% of the other assets and liabilities of Ellomay Luzon Energy, the consideration is approximately NIS 560M. Ellomay Clean Energy LP and the Luzon Group entered into a share purchase agreement on March 27, 2026. The consummation of the sale is subject to customary closing conditions, including the approvals of the Israeli Electricity Authority, the Israeli Competition Authority and Ellomay Luzon Energy's lenders, all to the extent required.
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About ELLO
Ellomay Capital Ltd is an Israel-based company principally active in the field of production of renewable and clean energy. The Company owns photovoltaic (PV) plants that are operating and connected to their respective national grids in Spain and Israel. In addition, the Company holds shares in Dorad Energy Ltd, which operates a power plant in the vicinity of Ashkelon; Groen Gas Goor BV and Groen Gas Oude-Tonge BV, project companies developing anaerobic digestion plants with green gas production in the Netherlands; Talasol Solar SL, which is involved in a project to construct a photovoltaic plant in Spain; Chashgal Elyon Ltd, Agira Sheuva Electra LP, and Ellomay Pumped Storage (2014) Ltd, all of which are involved in a project to construct a pumped-storage hydropower plant at the Manara Cliff in Israel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Loss Situation: The company incurred a loss of approximately €12.2 million for the three months ended March 31, 2026, contrasting sharply with a profit of about €6.8 million in the same period of 2025, highlighting increased financial pressure.
- EBITDA Decline: The EBITDA for Q1 2026 was approximately €2.1 million, down from €2.9 million in Q1 2025, reflecting challenges in maintaining profitability.
- Financial Transparency: Ellomay indicated that it would provide additional disclosures regarding non-IFRS financial measures in its earnings report to enhance investor understanding of its financial condition.
See More
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- Financial Performance Decline: As of March 31, 2026, Ellomay's total assets amounted to approximately €885.4 million, up from €843.5 million as of December 31, 2025, but revenues fell to about €8.7 million, down from €8.9 million year-over-year, indicating revenue pressure amid declining electricity prices.
- Increased Losses: The company reported a loss of approximately €12.2 million in Q1 2026, compared to a profit of €6.8 million in Q1 2025, primarily due to falling electricity prices and rising financing costs, reflecting the company's vulnerability in the current market environment.
- EBITDA Decline: EBITDA for Q1 2026 was approximately €2.1 million, down from €2.9 million in Q1 2025, indicating challenges in operational efficiency and cost control, which may affect future investment attractiveness.
- Impact of Asset Disposal: The company completed the sale of Ellomay Luzon Energy on May 10, 2026, for approximately NIS 560 million (about €164 million), which improved cash flow in the short term, but long-term profitability remains a concern.
See More
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- Asset Valuation Context: The sale was based on a valuation of Dorad Energy at NIS 4.4 billion, with Ellomay's indirect holdings in Dorad valued at NIS 742.5 million, ensuring a net gain after accounting for Ellomay Luzon Energy's net debt.
- Enhanced Financial Flexibility: Approximately NIS 166.2 million from the transaction will be used for the early repayment of Series E Secured Debentures due May 24, 2026, thereby enhancing Ellomay's financial flexibility to support future project developments.
- Strategic Focus Adjustment: CEO Ran Fridrich noted that this transaction allows the company to sharpen its focus on core business activities, further driving long-term shareholder value creation, which underscores Ellomay's strategic positioning in the renewable energy market.
See More
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- Financial Adjustments: The annual report indicates a decrease of approximately €1.5 million in project development costs primarily due to a reversal of provisions, alongside a €1.9 million reduction in tax benefits for 2025, reflecting the company's financial management flexibility.
- Renewable Energy Investments: Ellomay operates solar power plants in Spain with a total capacity of approximately 335.9 MW, including a 300 MW Talasol solar plant in which it holds a 51% stake, demonstrating its ongoing investment and market position in the renewable energy sector.
- Diverse Project Portfolio: The company holds significant stakes in various projects across Italy, the Netherlands, and Texas, including an 850 MW Dorad Energy power plant and a 156 MW pumped storage hydro power plant, showcasing its diversified strategy in the global renewable energy market.
See More
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- Revenue Growth: Despite the negative EPS, Ellomay achieved revenue of €10M, reflecting a 14.9% year-over-year increase, suggesting some growth potential driven by market demand.
- Annual Performance: This quarter's revenue growth highlights the company's efforts in business expansion over the past year, although the overall profitability remains unaddressed, necessitating a focus on future profit strategies.
- Market Reaction: Investors may react negatively to the loss, leading to stock price volatility, and Ellomay will need to implement measures to restore market confidence and improve financial performance.
See More
Ellomay Capital Reports 2025 Financial Highlights
- Significant Asset Growth: As of December 31, 2025, Ellomay's total assets reached approximately €845.6 million, representing a 24.9% increase from €677.3 million in 2024, indicating the company's expansion potential and market confidence in the renewable energy sector.
- Slight Revenue Increase: The company's total revenue for 2025 was approximately €42.8 million, a 6.1% increase from €40.5 million in 2024, primarily driven by contributions from newly grid-connected solar facilities in Italy and the USA, despite a decline in revenue from Dutch biogas facilities.
- Trend of Reduced Losses: Ellomay reported a loss of approximately €6 million for 2025, down 33.3% from €9 million in 2024, reflecting improvements in cost control and operational efficiency, which enhances expectations for future profitability.
- Substantial EBITDA Growth: The EBITDA for 2025 was approximately €33.4 million, a 33.1% increase from €25.1 million in 2024, demonstrating that the returns on investments in renewable energy projects are beginning to materialize, boosting investor confidence in the company's future growth.
See More
