Atlantica Sustainable Infrastructure : Reports First Quarter 2021 Financial Results (PDF)

Atlantica Reports First Quarter 2021 Financial Results

• Revenue increased by 11.8% year-over-year up to $235.2 million.
• Net loss for the quarter attributable to the Company was $19.2 million, compared with a net loss of $40.5 million in the first quarter of 2020.
• Net cash provided by operating activities of $146.7 million compared with $85.7 million in the first quarter of 2020.
• Cash available for distribution ("CAFD") increased by 7.6% year-over-year up to $51.2 million in the first quarter of 2021.
• Agreement reached to acquire a 49% interest in a 596 MW portfolio of wind assets in Illinois, Texas, Oregon and Minnesota.
• Closed the acquisition of Coso, a 135 MW contracted renewable energy plant in California.
• Closed the investment in Chile PV2, a 40 MW solar plant via our renewable energy platform.
• Quarterly dividend of $0.43 per share approved by the Board of Directors.

May 6, 2021 - Atlantica Sustainable Infrastructure plc (NASDAQ: AY) ("Atlantica" or the "Company") today reported its financial results for the first quarter of 2021. Revenue for the first quarter of 2021 was $235.2 million, an 11.8% increase compared with the first quarter of 2020. Adjusted EBITDA including unconsolidated affiliates increased by 2.5% to $170.1 million and CAFD was $51.2 million, a 7.6% rise compared with $47.6 million in the first quarter of 2020.

"In the first quarter of 2021 we made very good progress on our growth strategy, with the agreement reached for the acquisition of the 596 MW wind portfolio in the US and closings of the acquisitions of Coso, a 135 MW renewable asset in California and Chile PV 2, a 40 MW PV plant.", said Santiago Seage, Atlantica's CEO.

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Highlights

(in thousands of U.S. dollars)

Revenue

Profit for the period attributable to the Company Adjusted EBITDA incl. unconsolidated affiliates Net cash provided by operating activities

CAFD

Three-month period

ended March 31,

20212020

$ 235,190 $ 210,403

(19,172)(40,511)

170,070165,962

146,70885,685

51,23747,558

Key Performance Indicators

	Three-month period
	ended March 31,
	2021	2020
Renewable energy
MW in operation1	1,591	1,496
GWh produced2	606	526
Efficient natural gas
MW in operation3	343	343
GWh produced4	542	644
Availability (%)5	98.3%	102.4%
Transmission and Transportation
Miles in operation	1,166	1,166
Availability (%)5	100.0%	99.9%
Water
Mft3 in operation2	17.5	10.5
Availability (%)5	97.5%	101.8%

• Represents total installed capacity in assets owned or consolidated for the first quarter of 2021 and 2020, regardless of our percentage of ownership in each of the assets.

• Includes curtailment in wind assets for which we receive compensation.
  3 Includes 43 MW corresponding to our 30% share in Monterrey.
  4 GWh produced includes 30% of the production from Monterrey.
  5 Availability refers to the time during which the asset was available to our client totally or partially divided by contracted or budgeted availability, as applicable.

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Segment Results

(in thousands of U.S. dollars)	Three-month period ended March 31,
	2021	2020

Revenue by geography

North America

South America

EMEA

Total Revenue

Adjusted EBITDA incl. unconsolidated affiliates by geography

North America

South America

EMEA

Total Adjusted EBITDA incl. unconsolidated affiliates

(in thousands of U.S. dollars)

Revenue by business sector

Renewable energy

Efficient natural gas

Transmission and Transportation

Water

Total Revenue

Adjusted EBITDA incl. unconsolidated affiliates by business sector Renewable energy

Efficient natural gas

Transmission and Transportation

Water

Total Adjusted EBITDA incl. unconsolidated affiliates

$	60,585	$	59,283
	38,308			35,654
	136,297			115,466
$	235,190	$	210,403

$	40,287	$	52,661
	29,943		28,422
	99,840		84,879
$	170,070	$	165,962

Three-month period ended March 31,

	2021					2020
$	166,691	$	150,793
	28,408			26,403
	26,614			26,608
	13,477			6,599
$	235,190	$	210,403

$	115,857	$	113,670
	23,182		24,462
	21,203		21,922
	9,828		5,908
$	170,070	$	165,962

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Production in the renewable energy portfolio increased by 15.2% for the first quarter of 2021 compared with the first quarter of 2020 mainly thanks to the contribution of the recent investments in solar assets and higher solar radiation and production in some assets. In the United States, production was slightly lower than in the same period of 2020 due to scheduled major maintenance works on one of the Mojave turbines in the first quarter of 2021.

ACT, the efficient natural gas power asset, had scheduled maintenance stops that caused lower availability and production levels, though without impact on revenue. In water, the decrease in availability was largely due to the installation of some new safety-related equipment at our new asset while transmission lines continue to deliver solid performance with high availability levels.

Revenue for the first quarter of 2021 was $235.2 million, an 11.8% increase compared with the first quarter of 2020, mostly thanks to the contribution of new assets, foreign exchange differences and higher solar resource and production in some assets.

Liquidity and Debt

As of March 31, 2021, cash at Atlantica's corporate level was $434.2 million ($304.2 million after deducting the $130 million paid for Coso in April 2021), compared with $335.2 million as of December 31, 2020. Additionally, as of March 31, 2021, the Company had $440.0 million available under its Revolving Credit Facility and therefore a total corporate liquidity of $874.2 million, compared with $750.2 million as of December 31, 2020. On March 1, 2021, the Revolving Credit Facility's maturity was extended to December 31, 2023, increasing the total limit from $425 million to $450 million.

As of March 31, 2021, net project debt6 was $4.58 billion, compared with $4.70 billion as of December 31, 2020, while net corporate debt7 was $531.1 million, compared with $658.5 million as of December 31, 2020. The net corporate debt / CAFD pre-corporate debt service ratio8 was 2.6x9 as of March 31, 2021, including the impact of Coso investment. As of March

• Net project debt is calculated as long-term project debt plus short-term project debt minus cash and cash equivalents at the consolidated project level.

• Net corporate debt is calculated as long-term corporate debt plus short-term corporate debt minus cash and cash

equivalents at Atlantica's corporate level.

• Net corporate leverage is calculated as corporate net debt divided by midpoint 2021 CAFD guidance before corporate debt service. CAFD pre-corporate debt service is calculated as CAFD plus corporate debt interest paid by Atlantica.

• For net corporate leverage ratio calculation purposes, corporate net debt as of March 31, 2021, has been calculated to include $130M equity investment paid in April 2021 and $40M of project debt pre-payment expected to occur in July 2021. As a result, net corporate debt increased by $170M to $701M. CAFD has not been changed. Absent such adjustment to corporate cash and net corporate debt, the ratio of corporate net debt / CAFD pre-corporate debt service was 2.0x.

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31, 2021, our average corporate debt maturity stands at approximately five years.

Dividend

On May 4, 2021, the Board of Directors of Atlantica approved a dividend of $0.43 per share. This dividend is expected to be paid on June 15, 2021 to shareholders of record as of May 31, 2021.

Credit Rating Update

During the first quarter of 2021, Atlantica's Corporate Rating was upgraded by S&P and Fitch:

• On March 31, 2021, Fitch Ratings upgraded Atlantica's Corporate Rating to BB+ (Stable Outlook). According to Fitch, the upgrade reflects the successful execution of Atlantica's financing program, the stable and predictable nature of contracted cash flows and a well- diversified portfolio regarding geographical exposure and asset class.
• On April 16, 2021, S&P Global Ratings also upgraded Atlantica's Corporate Rating to BB+ (Stable Outlook), highlighting the increased scale, stable performance, and corporate leverage in line with the BB+ rating level. They also affirmed the senior secured debt at BBB-.

Growth

1. Acquisition of a 49% equity interest in a 596 MW wind portfolio

In April 2021, Atlantica reached an agreement to acquire a 49% interest in a 596 MW portfolio of four wind assets in Illinois, Texas, Oregon, and Minnesota. Total equity investment is expected to be approximately $196.510 million which represents an Enterprise Value11 / EBITDA12 multiple of approximately 5.9 times. The assets have PPAs with investment grade off-takers and have a proven operational track record. Closing is expected in the third quarter of 2021 subject to customary conditions and regulatory approvals.

1. Subject to certain customary adjustments.
2. Enterprise Value is defined as the expected investment divided by the 49% equity interest agreed to be acquired. The asset has no debt.
3. EBITDA is calculated as profit/(loss) of the portfolio for the year 2020 after adding back depreciation, amortization and impairment charges. There were no financing costs or income tax in 2020 in this portfolio (see reconciliation on page 15).

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