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

Atlantica Reports Second Quarter 2021 Financial Results

• Revenue for the first half of 2021 increased by 31.2% year-over-year up to $611.2 million, and an increase of 13.5% year-over-year on a comparable basis1.
• Adjusted EBITDA including unconsolidated affiliates was $404.2 million in the first half of 2021, a 6.3% year-over-year increase.
• Net loss for the first half of 2021 attributable to the Company was $6.8 million, compared with a net loss of $28.2 million in the first half of 2020.
• Cash available for distribution ("CAFD") increased by 12.9% year-over-year up to $109.9 million in the first half of 2021.
• $400 million in Green Senior Notes successfully closed in May, extending part of our corporate debt maturity from 2025 to 2028.
• Closed the previously announced investments in Coso, a 135 MW contracted renewable energy plant in California, and a 49% interest in a 596 MW portfolio of wind assets in the US.
• Quarterly dividend of $0.43 per share approved by the Board of Directors.

August 3, 2021 - Atlantica Sustainable Infrastructure plc (NASDAQ: AY) ("Atlantica" or the "Company") today reported its financial results for the first half of 2021. Revenue for the first half of 2021 was $611.2 million, a 31.2% increase compared with the first half of 2020. On a comparable basis1, the increase in revenue was 13.5%. Adjusted EBITDA including unconsolidated affiliates increased by 6.3% up to $404.2 million. Growth in revenue and Adjusted EBITDA resulted mainly from the recent investments in new assets, higher production in our renewable energy business and foreign exchange differences. Cash Available for Distribution was $109.9 million, a 12.9% increase compared with $97.3 million in the first half of 2020.

1 Revenue for the first half of 2021 on a constant currency basis and adjusted for the consolidation of a non-recurrent Rioglass solar project was $528.5 million, a 13.5% increase compared to the first half of 2020.

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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		Six-month period
ended June 30,		ended June 30,
2021	2020	2021	2020
$ 375,985	$ 255,344	$ 611,175	$ 465,747
12,343	12,340	(6,829)	(28,171)
234,165	214,107	404,234	380,069
99,609	62,722	246,317	148,407
58,657	49,717	109,894	97,275

Key Performance Indicators

	Six-month period
		ended June 30,
2021	2020
Renewable energy
MW in operation2	2,018			1,551
GWh produced3	1,984			1,482
Efficient natural gas & heat
MW in operation4	398			343
GWh produced5	1,043			1,268
Availability (%)6	99.4%			101.7%
Transmission lines
Miles in operation	1,166			1,166
Availability (%)5	99.9%			99.9%
Water
Mft3 in operation2	17.5			17.5
Availability (%)5	99.7%			102.0%

1. Represents total installed capacity in assets owned or consolidated at the end of the period, regardless of our percentage of ownership in each of the assets, except for the US Wind Portfolio for which we have included our 49% interest.
2. Includes 49% of the US Wind Portfolio production since its acquisition. Includes curtailment in wind assets for which we receive compensation.
3. Includes 43 MW corresponding to our 30% share in Monterrey and 55 MWt corresponding to thermal capacity from Calgary District Heating.
4. GWh produced includes 30% share 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)

Revenue by geography

Six-month period ended June 30,

20212020

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

$ 178,801 78,351 354,023

$ 611,175

$ 134,861 60,222 209,151

$ 404,234

$ 157,932 75,029 232,786

$ 465,747

$ 142,615 59,802 177,652

$ 380,069

(in thousands of U.S. dollars)

Six-month period ended June 30,

20212020

Revenue by business sector

Renewable energy

Efficient natural gas & heat

Transmission lines

Water

Total Revenue

Adjusted EBITDA incl. unconsolidated affiliates by business sector

Renewable energy

Efficient natural gas & heat

Transmission lines

Water

Total Adjusted EBITDA incl. unconsolidated affiliates

$ 471,624 58,506 53,589 27,456

$ 611,175

$ 295,030 47,221 42,522 19,461

$ 404,234

$ 344,674 52,032 53,395 15,646

$ 465,747

$ 275,085 47,765 44,345 12,874

$ 380,069

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Production in the renewable energy portfolio increased by 33.7% for the first half of 2021 compared with the first half of 2020 mainly thanks to the contribution of recent investments, as well as better solar radiation in North America and in Spain.

In our efficient natural gas and heat and transmission lines segments, where revenue is based on availability, we maintained very high availability levels. In water, the decrease in availability was largely due to the installation of some new safety-related equipment at one of our plants during the first quarter of 2021.

Liquidity and Debt

As of June 30, 2021, cash at Atlantica's corporate level was $83.2 million, compared with $335.2 million as of December 31, 2020. Additionally, as of June 30, 2021, the Company had $440.0 million available under its Revolving Credit Facility and therefore total corporate liquidity of $523.2 million, compared with $750.2 million as of December 31, 2020.

As of June 30, 2021, net project debt7 was $4.77 billion, compared with $4.70 billion as of December 31, 2020, while net corporate debt8 was $941.8 million, compared with $658.5 million as of December 31, 2020. The net corporate debt / CAFD pre-corporate debt service ratio9 was 3.4x as of June 30, 2021. As of June 30, 2021, our average corporate debt maturity stands at approximately 6 years.

Green Senior Notes

On May 18, 2021, Atlantica successfully issued $400 million in Green Senior Notes with a 4.125% annual interest rate and 2028 maturity. Proceeds were used to fully prepay the NIFA 2019 due in 2025, extending part of Atlantica's corporate debt maturities and to finance accretive growth opportunities. The Green Senior Notes were issued in compliance with the Green Bond Principles 2018, making it the fourth green financing issued by Atlantica to date.

1. 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.
2. 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.
3. 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.

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Dividend

On July 30, 2021, the Board of Directors of Atlantica approved a dividend of $0.43 per share. This dividend is expected to be paid on September 15, 2021 to shareholders of record as of August 31, 2021.

Growth

During the second quarter, Atlantica continued executing on its accretive growth strategy and closed several previously announced investments:

• Wind Portfolio: On June 16, 2021, Atlantica closed the acquisition of a 49% interest in a 596 MW portfolio of four wind assets in the US for a total equity investment of $198.3 million. The assets have PPAs with investment grade off-takers.
• Calgary District Heating: On May 14, 2021, Atlantica closed the acquisition of Calgary District Heating for a total equity investment of $22.5 million. The asset has availability- based revenue with inflation indexation and a 20-year weighted average remaining contract life.
• Coso: On April 7, 2021, Atlantica closed the acquisition of a 135 MW renewable asset in California. Coso has PPAs signed with three investment grade off-takers with a 19-year average remaining contract life. The total investment was $170 million, including $130 million in equity value and $40 million paid on July 15, 2021 to reduce project debt.

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 Tuesday, August 3, 2021, at 8:30 am (New York time).

In order to access the conference call participants should dial: + 1-631-510-7495 (US), +44

1. 844-571-8892(UK) or [phone] (Canada), followed by the confirmation code 4128854. Atlantica advises participants to access the conference call at least 20 minutes in advance.

The senior management team will also hold virtual meetings with investors during the month of August at the Goldman Sachs Power, Utilities, MLPs and Pipelines Conference, the Seaport 10th Annual Summer Investor Conference and the Wolfe Research Inaugural ESG Conference.

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