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Atlantica Reports First Quarter 2024 Financial Results
Revenue for the first quarter of 2024 remained stable at $242.9 million, compared with $242.5 million in the first quarter of 2023.
Adjusted EBITDA was $164.2 million, a 0.9%1 year-over-year decrease on a comparable basis.
Net loss for the first quarter of 2024 attributable to the Company was $5.4 million, compared with a net loss of $11.0 million in the first quarter of 2023.
Operating Cash Flow increase of 57.3% year-over-year up to $65.6 million.
Signed a 15-year PPA for a 100 MW solar + storage project in California.
Closed the acquisition of two wind assets in operation in the UK at 6.6x EV2 / EBITDA3 multiple.
Quarterly dividend of $0.445 per share approved by the Board of Directors.
Strategic Review ongoing.
May 8, 2024 – Atlantica Sustainable Infrastructure plc (NASDAQ:AY) ("Atlantica" or the "Company") today reported its financial results for the first quarter of 2024. Revenue for the first quarter of 2024 was $242.9 million, a 0.2% increase compared with the first quarter of 2023. Adjusted EBITDA was $164.2 million, a 0.9% decrease year-over-year excluding the impact of the unscheduled outage at Kaxu1, and a 5.7% decrease compared to the first quarter of 2023. Operating Cash Flow was $65.6 million, a 57.3% increase compared with $41.7 million in the first quarter of 2023. CAFD was $50.9 million, a 17% decrease compared with $61.0 million in the first quarter of 2023 which included $4.1 million from the sale of part of our equity interest in our development company in Colombia to a partner. CAFD per share4 was $0.44, a 17% decrease compared to the same period of the previous year and an 11% decrease excluding the equity sale in Colombia previously mentioned.
Highlights
(in thousands of U.S. dollars)
Three-month period ended March 31,
2024
2023
Revenue
$ 242,933
$ 242,509
Loss for the period attributable to the Company
(5,392)
(10,990)
Adjusted EBITDA
164,219
174,204
Net cash provided by operating activities
65,583
41,706
CAFD
50,921
61,049
Key Performance Indicators (KPIs)
Three-month period ended March 31,
2024
2023
Renewable energy
MW in operation5
2,203
2,161
GWh produced6
1,063
1,192
Efficient natural gas & heat
MW in operation7
398
398
GWh produced8
636
600
Availability (%)
102.3%
94.9%
Transmission lines
Miles in operation
1,229
1,229
Availability (%)
100.0%
100.0%
Water
M ft3 in operation
17.5
17.5
Availability (%)
102.3%
100.8%
Segment Results
(in thousands of U.S. dollars)
Three-month period ended March 31,
2024
2023
Revenue by geography
North America
$ 86,232
$ 72,840
South America
44,678
43,720
EMEA
112,023
125,949
Total Revenue
$ 242,933
$ 242,509
Adjusted EBITDA by geography
North America
$ 55,026
$ 51,969
South America
34,568
33,788
EMEA
74,625
88,447
Total Adjusted EBITDA
$ 164,219
$ 174,204
(in thousands of U.S. dollars)
Three-month period ended March 31,
2024
2023
Revenue by business sector
Renewable energy
$ 162,211
$ 172,601
Efficient natural gas & heat
35,970
27,403
Transmission lines
30,486
28,831
Water
14,266
13,674
Total Revenue
$ 242,933
$ 242,509
Adjusted EBITDA by business sector
Renewable energy
$ 107,250
$ 119,122
Efficient natural gas & heat
23,287
22,610
Transmission lines
24,827
23,470
Water
8,855
9,002
Total Adjusted EBITDA
$ 164,219
$ 174,204
Operational KPIs
Production in the renewable energy portfolio decreased by 11.0% for the first quarter of 2024 compared with the first quarter of 2023 largely due to the unscheduled outage at Kaxu, where we have a 51% equity interest, that started in 2023. Kaxu restarted operations in mid-February 2024. Part of the damage and the business interruption is covered by our insurance policy, after a 60-day deductible. Production also decreased in Spain as a result of significantly lower solar radiation.
Production in our solar assets in U.S. increased by 16.1% due to higher availability of the storage system at Solana.
Efficient natural gas and heat assets, water assets and transmission lines, for which revenue is based on availability, continued at very high levels during the first quarter of 2024.
Liquidity and Debt
As of March 31, 2024, cash at Atlantica's corporate level was $46.9 million, compared with $33.0 million as of December 31, 2023. Additionally, as of March 31, 2024, the Company had $305.0 million available under its Revolving Credit Facility and therefore a total corporate liquidity of $351.9 million, compared with $411.1 million as of December 31, 2023.
As of March 31, 2024, net project debt9 remained stable at $3.90 billion, compared with $3.90 billion as of December 31, 2023, while net corporate debt10 was $1,126.8 million, compared with $1,051.7 million as of December 31, 2023. As of March 31, 2024, the net corporate debt / CAFD before corporate debt service ratio11 was 3.8x.
Dividend
On May 7, 2024, the Board of Directors of Atlantica approved a dividend of $0.445 per share. This dividend is expected to be paid on June 14, 2024 to shareholders of record as of May 31, 2024.
Growth Update
Atlantica continued consolidating its growth strategy through its own development engine complemented by acquisitions.
In April 2024, Atlantica acquired the Imperial project, a 100 MW PV + storage project in Southern California. On May 6, 2024 the project entered into a 15-year PPA with an investment grade off-taker. Imperial is a well contracted project that benefits from synergies with the existing assets in California.
On March 22, 2024, the Company closed the acquisition of a 100% equity interest stake in two operating wind assets, with 32 MW combined capacity, located in Scotland, UK. The assets are regulated under the UK green attribute regulation. The investment was approximately $66 million and the assets currently do not have any project debt. These are Atlantica's first operating assets in the UK, and the expected return from these assets will be enhanced by the use of our existing net operating loss carryforwards in the UK in the upcoming years.
In April 2024, Chile PV 3 signed a 10-year PPA covering part of the production of the PV plant in operation and the 142 MWh battery storage expansion under construction. Under the PPA, the asset is expected to sell the electricity at a fixed price per MWh denominated in U.S. dollars and indexed to the US CPI. The PPA benefits from a higher price, given that the electricity is delivered during the night. Our investment is expected to be between $14 million and $15 million and COD is expected in 2024.
In May 2024, we approved a 27.5 MWDC/22 MWAC project in Spain for which we are in advanced negotiations to sign a PPA. Total investment is expected to be between $16 million and $18 million, with expected COD in early 2026.
Atlantica currently has a pipeline of projects under development of approximately 2.2 GW12 of renewable energy and 6.0 GWh12 of storage. This pipeline consists mostly of PV (47%), storage (41%) and wind (11%).
Capital Recycling
In April 2024, an entity where Atlantica holds 30% equity interest closed the sale of Monterrey as planned. Atlantica expects to receive approximately $43 million proceeds subject to final transaction costs, taxes, and ongoing discussions with the partner. There is an earn-out mechanism that could result in additional proceeds for Atlantica of up to approximately $7 million between 2026 and 2028.
Details of the Results Presentation Conference
Atlantica's CEO, Santiago Seage and CFO, Francisco Martinez-Davis, will hold a conference call and a webcast on Wednesday, May 8, 2024, at 8:00 am (New York time).
In order to access the conference call participants should dial: +1-646-787-9445 (US), +44 (0) 20-3936-2999 (UK) or +1-613-699-6539 (Canada), followed by the confirmation code 335240. Atlantica advises participants to access the conference call at least 15 minutes in advance.
The senior management team will also hold meetings with investors on May 14, 2024, at the Citi 2024 Global Energy and Utilities Conference in Boston, on May 22, 2024, at the EIC 2024 Investor Conference in Florida, and on May 23, 2024, at the NBF 2024 Annual Canadian Clean Energy Conference in London.
Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this press release, including, without limitation, those regarding our future financial position and results of operations, our strategy, plans, objectives, goals and targets, future developments in the markets in which we operate or are seeking to operate. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "plan", "should" or "will" or the negative of such terms or other similar expressions or terminology.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements speak only as of the date of this press release and are not guarantees of future performance and are based on numerous assumptions. Our actual results of operations, financial condition and the development of events may differ materially from (and be more negative than) those made in, or suggested by, the forward-looking statements. Except as required by law, we do not undertake any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof or to reflect anticipated or unanticipated events or circumstances.
Investors should read the section entitled "Item 3.D—Risk Factors" and the description of our segments and business sectors in the section entitled "Item 4.B. Information on the Company—Business Overview", each in our Annual Report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission ("SEC"), for a more complete discussion of the risks and factors that could affect us.
Forward-looking statements include, but are not limited to, statements relating to: cash available for distribution ("CAFD") estimates; net corporate leverage based on CAFD estimates; the use of non-GAAP measures as a useful predicting tool for investors; proceeds from sale of assets; dividends; return from the recently acquired UK wind assets; sale of ...