TEL AVIV, Israel, Aug. 09, 2023 (GLOBE NEWSWIRE) -- Enlight Renewable Energy Ltd. (NASDAQ: ENLT, TASE: ENLT) today reported financial results for the second quarter ended June 30, 2023.
The Company’s quarterly earnings materials and a link to the earnings webcast, which will be held today at 8:00 AM ET, may be found on the investor relations section of Enlight’s website at https://enlightenergy.co.il/data/financial-reports/
Second Quarter 2023: Financial Highlights
First Half 2023: Financial Highlights
“We delivered rapid growth and increased profitability in the second quarter of 2023, driven primarily by 700 MW of new operational projects. While quarterly revenue grew at a rate of 32% year over year, which was lower than expected, driven by lower wind production and electricity prices at Project Gecama in Spain, Adjusted EBITDA growth remained as expected at 58% thanks to lower O&M costs in Spain and better results across other projects”, said Gilad Yavetz, CEO of Enlight Renewable Energy.
“We made significant progress this quarter across our Mature Portfolio, which provides us with a strong indication of our ability to deliver consistent rapid growth.We reached commercial operation on150 MWof generation and 40 MWh of energy storage, including our first ever storage project,while securing critical milestones on over 2 GW of MatureProjects, including the addition of a new flagship project in the Western U.S to our Mature Portfolio.We believe thatthe progress we have made further de-risks our plan to reach 4.6 GW and 3.6 GWh of operational projects by the end 2025.”
“In addition, we continued to deliver projects with above-market returns. During the quarter, we secured 250 MW of power purchase agreement (“PPA”) amendments with an average price increase of 87% and signed 280 MW and 1,680 MWh of new PPAs at attractive prices. Project Atrisco was also recognized as an energy community under the Inflation Reduction Act (“IRA”), further increasing the projected returns for our first flagship project in the United States. We believe our proven record of delivering both rapid growth and above-market returns puts us in a prime position to capture the massive opportunity we see ahead.”
Second Quarter: Further Highlights
Overview of Financial and Operating Results: Revenue
In the second quarter of 2023, the Company’s revenues increased to $53m, up from $40m last year, a growth rate of 32% year over year. Growth was mainly driven by the revenue contribution of new operational projects, as well as the inflation indexation embedded in PPAs for already operational projects.
| ($ thousands) | For the six months period ended | For the three months Ended | ||
| Segment | June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 |
| Israel | 29,757 | 22,685 | 15,919 | 17,996 |
| Central-Eastern Europe | 44,337 | 37,946 | 21,102 | 16,616 |
| Western Europe | 45,193 | 9,596 | 13,405 | 3,007 |
| Management and Construction | 4,270 | 4,712 | 2,137 | 2,260 |
| Total Revenues | 123,557 | 74,939 | 52,563 | 39,879 |
Since the second quarter of last year, 700MW of projects started selling electricity, includingGecama andBjörnberget. These projects collectively contributed $11m of revenue during the second quarter of 2023.
The Company also benefited from inflation indexation embedded in its PPAs, which contributed an additional $3m of revenue during the quarter. This reflected an average indexation of 7.2% across 592 MW of PPAs for projects that have been operational for a full year.
With respect to FX, the impact of a strengthening Euro was offset by a weaker Shekel, with a cumulative negative impactof $1 million.
Financial performance was well-balanced between Western Europe, Central-Eastern Europe (“CEE”) and Israel, with 61% of revenues in the second quarter of 2023 denominated in Euros, 5% in another European currency and 30% denominated in Israeli shekel. In the second half of 2023, revenue is expected to include a substantial contribution denominated in U.S. dollars, following the COD of Apex Solar, the Company’s first project to reach commercial operations in the United States.
In addition to the above, the Company sold $5m of electricity in projects treated as financial assets in the second quarter.Under IFRS this revenue is accounted for as financing income or other non-P&L metrics.
Net Income
In the second quarter of 2023, the Company’s net income increased to $22m, transitioning from a $1m loss last year. $12m of the increase was driven by new projects, including $6m from Björnberget, largely reflecting the after-tax impact of the compensation recognized from Siemens Gamesa.
With respect to the recent announcement by Siemens Gamesa on issues with its onshore wind turbines, we do not expect either a short or long term impact to Project Björnberget. During the second quarter, we recognized compensatory payments from Siemens Gamesa under our agreement due to delays in reaching full production. As of today, 56 of 60 turbines are operational. COD under the PPA has been declared and Björnberget is expected to reach full production in the coming weeks.
The residual growth in net income of $11m was driven by a reduced expectation of earnout payments to be incurred for the acquisition of Clenera for early stage projects not in our Mature Portfolio ($5m) and interest income on deposits as well as foreign exchange impacts (strengthening USD relative to the NIS) on our cash and cash equivalents ($6m).
Adjusted EBITDA*
In the second quarter of 2023, the Company’s Adjusted EBITDA grew by 58% to $42m compared to $26m for the same period in 2022.
The increase was driven by the same factors which affected our revenue increase in the same period, as well as $8m of compensation recognized from Siemens Gamesa due to the delay in reaching full production at Project Björnberget as described above, offset by a $2m increase in overhead as the team scales to accommodate rapid growth.
Portfolio Overview1
Key changes to the Company’s projects portfolio during the second quarter of 2023:
Portfolio Overview
1 As of August 09, 2023 (“Approval Date”).
United States
The Company delivered significant progress on its large U.S. portfolio during the second quarter of 2023.
The Apex Solar project, sized at 105MWdc and located in southwestern Montana, achieved mechanical completion and began operating in June. After optimization and tuning, commercial operations were achieved in July. The milestone is a significant one for the group as it represents Enlight’s first project to reach commercial operations in the United States.
In New Mexico, our 364 MW / 1,200 MWh Atrisco Solar project is advancing steadily. The project’s battery supplier completed work to finalize factory qualification and has initialized battery pack shipments required for container deliveries, which are set to begin in the fourth quarter of 2023. Site work is on schedule and commercial operation is on track for the end of the second quarter 2024. Moreover, the Company confirmed that Atrisco qualifies for a 10% tax credit adder on both the solar and storage portions of the project. The adder is based on the project site’s brownfield status and subsequent qualification for energy community classification. Project finance definitive agreements are advancing with financial close now expected in September of 2023.
The Company is also progressing on the CO Bar project, located in Arizona. At 1.2 GW solar and 824 MWh storage, CO Bar is the first of the Company’s gigawatt sized projects to mature. In the second quarter, we successfully contracted the remaining 258 MW and 824 MWh of the project. CO Bar is now fully contracted with two leading Arizona utilities (Salt River Project and Arizona Public Service), under 20 year busbar PPAs. There is also potential to expand the storage part of the project in the future from 824 MWh today to 4 GWh given the size of our interconnection position. On the development front, the CO Bar project has primary land control and permitting in place. The system impact study (SIS) for the interconnection is complete, and the facilities study is expected in Q4 of 2023. CO Bar is expected to start construction in the fourth quarter of 2023 and achieve COD in phases through 2025. The project stands to benefit from the IRA, including the production tax credit (PTC) and the possibility of a domestic content adder on the storage.
Moreover, the Company added 278 MW and 800 MWh to its Mature Portfolio in the U.S., driven by the addition of Roadrunner,a flagship combined solar and storage project in Arizona.The project totaling 250 MW and 800 MWh is contracted to AEPCO under a 20 year busbar PPA. COD is expected in H1 2026. The projecthas site control, a signed PPA and a signed interconnection agreement. Final permitting is required, after which construction is expected to commence. The project highlights our continued market leadership in the West and the underlying quality of our project pipeline.
Finally, the Company’s advanced portfolio and market specific knowledge has enabled it to avoid the increasing interconnection queue congestion across the United States over the quarter. In the second quarter, Rustic Hills secured its system impact study, a significant milestone for the project. The Company’s entire Mature Portfolio and Advanced Development Portfolio in the U.S. is now past the system impact study phase – a critical component of the interconnection study process. Given this advantage, the Company believes it is well positioned to continue and even potentially accelerate its growth in the United States.
On supply chain, the Company’s diversified sourcing strategy has reliably satisfied module and other equipment supply requirements in the United States. The Company has the right to purchase up to 2 GW of modules from India with delivery through 2025. We also have access to additional supply from Southeast Asia. Our battery cell source is now qualified in international factories, and we are seeing strong progress in reaching our goal to have qualified domestic supply for late 2024 deliveries and beyond. Our procurement strength is proving to be a source of strategic advantage in negotiating project contracts with utility offtake and demonstrating to financing parties we can hold construction schedules.
Europe
The Company made substantial progress on its European portfolio during the quarter. The Company reached commercial operation on 26 MW in Hungary. This is our second project to reach commercial operation in Hungary with another 60 MW currently under construction. In addition, during the quarter the Company commenced construction on project Pupin, a 94 MW wind project in Serbia. Pupin is located adjacent to our existing operational asset in Serbia, Project Blacksmith, leveraging the same point of interconnection under our land and expand strategy.
On the development front, Gecama Solar (Spain), a 250 MW solar and 200 MWh storage project, is approaching the start of construction. The Company believes the project is close to securing its environmental permit, which would be the final major development milestone. Construction is on schedule to commence by the end of 2023 with COD expected by year end 2024.
Within the Company’s operational portfolio in Europe, wind speeds during the second quarter were lower than expected across Spain, impacting Project Gecama (Spain). In addition, at Project Gecama, merchant pricing was lower than expected driven by falling natural gas prices. This was offset by significantly lower than expected windfall taxes (O&M costs). The windfall tax was implemented by the Spanish government to reduce the impact of high electricity prices on consumers, by taxing renewable generators. The windfall tax moves in tandem with natural gas prices. During the second quarter of 2023, Gecama (Spain) sold electricity at an average price of EUR 65 per MWh, of which 65% was hedged at EUR 58 per MWh with the remainder sold on merchant basis at EUR 79 per MWh. Windfall taxes were EUR 4 per MWh. While merchant prices were lower than expected in the second quarter, merchant prices in Spain remain high through 2024. During the second quarter, the Company signed hedges comprising 22% of production at an average price of EUR 97 per MWh for 2024 delivery.
Israel
In the second quarter, Genesis Wind, the largest renewable energy project in Israel, totaling 207 MWwas connectedto the grid. Full COD is expected by the end of the third quarter 2023.
The Company continues to progress construction on Solar + Storage project clusters, totaling 248 MW and 474 MWh of storage. During the second quarter 23 MW and 40 MWh reached commercial operation. An additional 67 MW and 115 MWh is expected to reach commercial operation before the end of 2023, with the remainder of the cluster expected to be commercialized by the end of the first half of 2024.
The Company made significant progress during the quarter on securing offtake for the Solar + Storage projects. Corporate PPAs were signed with leading multinationals including Amdocs, and SodaStream (subsidiary of PepsiCo) totaling 30 MW and 60 MWh, with negotiations ongoing with several additional offtakers. As a result of the deregulation of the electricity market in Israel, we are observing significant corporate demand for renewable energy, which has increased our PPA prices and the returns we expect to generate from our future projects.
Post-quarter end, in July 2023, the Company sold two small projects in Israel totaling 25 MW at a valuation of $465,000 per MW. This is expected to contribute about $6m of net proceeds in the third quarter.
Balance Sheet
The Company benefits from a strong and diversified liquidity position, with 84% of cash and cash equivalents held in U.S. dollars or Euros, with minimal exposure to the Israeli shekel.
| ($ thousands) | June 30, 2023 | ||
| Cash and Cash Equivalents: | |||
| Enlight Renewable Energy Ltd ,Enlight EU Energies Kft and Enlight Renewable LLC, excluding subsidiaries (“Topco”) | 147,312 | ||
| Subsidiaries | 173,406 | ||
| Deposits: | |||
| Short term deposits | 3,693 | ||
| Restricted Cash: | |||
| Projects under construction | 86,909 | ||
| Reserves, including debt service, performance obligations and others | 39,305 | ||
| Total Cash | 450,625 | ||
| Financial assets at fair value through profit or loss* | 32,948 | ||
| Total Liquidity | 483,573 | ||
* Securities, largely government fixed income securities
The Company secured $170m of revolving credit facilities from numerous Israeli banks. The revolving credit facilities, which are undrawn, demonstrate our financial strength and provide additional flexibility to the Company as it delivers on its Mature Project portfolio.
2023 Financial Outlook
Commenting on the outlook, Enlight Chief Financial Officer Nir Yehuda noted, “In light of lower merchant pricing and weaker wind speeds in Spain we have revised our revenue forecast for the year. This impact is expected to be offset at the Adjusted EBITDA level by lower O&M costs, as windfall tax costs in Spain have significantly decreased, driven by lower natural gas prices, coupled with compensation recognized from Siemens Gamesa for Project Björnberget. We are therefore pleased to affirm our Adjusted EBITDA guidance for 2023.”
Details of the 2023 outlook include:
* The section titled “Non-IFRS Financial Measures” below contains a description of Adjusted EBITDA, a non-IFRS financial measure discussed in this press release. A reconciliation between Adjusted EBITDA and Net Income, its most directly comparable IFRS financial measure, is contained in the tables below. The Company is unable to provide a reconciliation of Adjusted EBITDA to Net Income on a forward-looking basis without unreasonable effort because items that impact this IFRS financial measure are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, forward-looking depreciation and amortization, share based compensation, other income, finance income, finance expenses, share of losses of equity accounted investees and taxes on income. Such information may have a significant, and potentially unpredictable, impact on the Company’s future financial results. We note that “Adjusted EBITDA” measures that we disclosed in previous filings in Israel were not comparable to “Adjusted EBITDA” disclosed in the release and in our future filings.
Conference Call Information
Enlight plans to hold its Second Quarter 2023 Conference Call and Webcast on Wednesday, August 09, 2023 at 8:00 a.m. ET to review its financial results and business outlook. Management will deliver prepared remarks followed by a question-and-answer session. Participants can join by conference call or webcast:
The press release with the financial results as well as the investor presentation materials will be accessible from the Company’s website prior to the conference call. Approximately one hour after completion of the live call, an archived version of the webcast will be available on the Company’s investor relations website at https://enlightenergy.co.il/info/investors/.
Supplemental Financial and Other Information
We intend to announce material information to the public through the Enlight investor relations website at https://enlightenergy.co.il/info/investors, SEC filings, press releases, public conference calls, and public webcasts. We use these channels to communicate with our investors, customers, and the public about our company, our offerings, and other issues. As such, we encourage investors, the media, and others to follow the channels listed above, and to review the information disclosed through such channels.
Any updates to the list of disclosure channels through which we will announce information will be posted on the investor relations page of our website.
Non-IFRS Financial Measures
This release presents Adjusted EBITDA, a financial metric, which is provided as a complement to the results provided in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). A reconciliation of the non-IFRS financial information to the most directly comparable IFRS financial measure is provided in the accompanying tables found at the end of this release.
We define Adjusted EBITDA as net income (loss) plus depreciation and amortization, share based compensation, finance expenses, taxes on income and share in losses of equity accounted investees and minus finance income and non-recurring other income. Non-recurring other income for the second quarter of 2023 included income recognized in relation to the reduction of earnout we expect to pay as part of the Clenera Acquisition. With respect to other expense (income), as part of Enlight’s strategy to accelerate growth and reduce the need for equity financing, the Company sells parts of, or entire, developed assets from time to time, and therefore includes realized gains and losses from these asset dispositions in Adjusted EBITDA. Our management believes Adjusted EBITDA is indicative of operational performance and ongoing profitability and uses Adjusted EBITDA to evaluate the operating performance and for planning and forecasting purposes.
Non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under IFRS. There are a number of limitations related to the use of non-IFRS financial measures versus comparable financial measures determined under IFRS. For example, other companies in our industry may calculate the non-IFRS financial measures that we use differently or may use other measures to evaluate their performance. All of these limitations could reduce the usefulness of our non-IFRS financial measures as analytical tools. Investors are encouraged to review the related IFRS financial measure, Net Income, and the reconciliations of Adjusted EBITDA provided below to Net Income and to not rely on any single financial measure to evaluate our business.
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding the Company’s business strategy and plans, capabilities of the Company’s project portfolio and achievement of operational objectives, market opportunity and potential growth, discussions with commercial counterparties and financing sources, progress of Company projects, including anticipated timing of related approvals and counterparty obligations in connection with production delays, the Company’s future financial results, expected impact from various regulatory developments, including the IRA, expectations regarding wind production, electricity prices and windfall taxes, and Revenue, EBITDA, and Adjusted EBITDA guidance, the expected timing of completion of our ongoing projects, and the Company’s anticipated cash requirements and financing plans, are forward-looking statements. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “target,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible,” “forecasts,” “aims” or the negative of these terms and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions.
These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our ability to site suitable land for, and otherwise source, renewable energy projects and to successfully develop and convert them into Operational Projects;availability of, and access to, interconnection facilities and transmission systems;our ability to obtain and maintain governmental and other regulatory approvals and permits, including environmental approvals and permits;construction delays, operational delays and supply chain disruptions leading to increased cost of materials required for the construction of our projects, as well as cost overruns and delays related to disputes with contractors;our suppliers’ ability and willingness to perform both existing and future obligations;competition from traditional and renewable energy companies in developing renewable energy projects;potential slowed demand for renewable energy projects and our ability to enter into new offtake contracts on acceptable terms and prices as current offtake contracts expire;offtakers’ ability to terminate contracts or seek other remedies resulting from failure of our projects to meet development, operational or performance benchmarks;various technical and operational challenges leading to unplanned outages, reduced output, interconnection or termination issues;the dependence of our production and revenue on suitable meteorological and environmental conditions, and our ability to accurately predict such conditions;our ability to enforce warranties provided by our counterparties in the event that our projects do not perform as expected;government curtailment, energy price caps and other government actions that restrict or reduce the profitability of renewable energy production;electricity price volatility at assets with merchant exposure, unusual weather conditions (including the effects of climate change, could adversely affect wind and solar conditions), catastrophic weather-related or other damage to facilities, unscheduled generation outages, maintenance or repairs, unanticipated changes to availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or electric transmission system constraints and the possibility that we may not have adequate insurance to cover losses as a result of such hazards;our dependence on certain operational projects for a substantial portion of our cash flows;our ability to continue to grow our portfolio of projects through successful acquisitions;changes and advances in technology that impair or eliminate the competitive advantage of our projects or upsets the expectations underlying investments in our technologies;our ability to effectively anticipate and manage cost inflation, interest rate risk, currency exchange fluctuations and other macroeconomic conditions that impact our business;our ability to retain and attract key personnel;our ability to manage legal and regulatory compliance and litigation risk across our global corporate structure;our ability to protect our business from, and manage the impact of, cyber-attacks, disruptions and security incidents, as well as acts of terrorism or war;changes to existing renewable energy industry policies and regulations that present technical, regulatory and economic barriers to renewable energy projects;the reduction, elimination or expiration of government incentives for, or regulations mandating the use of, renewable energy;our ability to effectively manage our supply chain and comply with applicable regulations with respect to international trade relations, tariffs, sanctions, export controls and anti-bribery and anti-corruption laws;our ability to effectively comply with Environmental Health and Safety and other laws and regulations and receive and maintain all necessary licenses, permits and authorizations;our performance of various obligations under the terms of our indebtedness (and the indebtedness of our subsidiaries that we guarantee) and our ability to continue to secure project financing on attractive terms for our projects;limitations on our management rights and operational flexibility due to our use of tax equity arrangements;potential claims and disagreements with partners, investors and other counterparties that could reduce our right to cash flows generated by our projects;our ability to comply with tax laws of various jurisdictions in which we currently operate as well as the tax laws in jurisdictions in which we intend to operate in the future;the unknown effect of the dual listing of our ordinary shares on the price of our ordinary shares;various risks related to our incorporation and location in Israel;the costs and requirements of being a public company, including the diversion of management’s attention with respect to such requirements; certain provisions in our Articles of Association and certain applicable regulations that may delay or prevent a change of control; and; and the other risk factors set forth in the section titled “Risk factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2022 filed with the Securities and Exchange Commission (the “SEC”)and our other documents filed with or furnished to the SEC.
These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
About Enlight
Founded in 2008, Enlight develops, finances, constructs, owns, and operates utility-scale renewable energy projects. Enlight operates across the three largest renewable segments today: solar, wind and energy storage. A global platform, Enlight operates in the United States, Israel and 9 European countries. Enlight has been traded on the Tel Aviv Stock Exchange since 2010 (TASE: ENLT) and completed its US IPO (Nasdaq: ENLT) in 2023.
Appendix 1 – Financial information
Consolidated Statements of Income
| For the six months ended June 30 | For the three months ended June 30 | ||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||
| USD in | USD in | USD in | USD in | ||||||
| thousands | thousands | thousands | thousands | ||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||
| Revenues | 123,557 | 74,939 | 52,563 | 39,879 | |||||
| Cost of sales | (20,413 | ) | (14,281 | ) | (10,160 | ) | (7,924 | ) | |
| Depreciation and amortization | (25,961 | ) | (16,214 | ) | (13,211 | ) | (9,613 | ) | |
| Gross profit | 77,183 | 44,444 | 29,192 | 22,342 | |||||
| General and administrative expenses | (16,491 | ) | (13,912 | ) | (8,418 | ) | (7,872 | ) | |
| Development expenses | (2,888 | ) | (2,653 | ) | (1,513 | ) | (1,346 | ) | |
| Other income | 14,734 | 918 | 14,229 | 587 | |||||
| (4,645 | ) | (15,647 | ) | 4,298 | (8,631 | ) | |||
| Operating profit | 72,538 | 28,797 | 33,490 | 13,711 | |||||
| Finance income | 32,262 | 13,303 | 11,885 | 5,062 | |||||
| Finance expenses | (33,431 | ) | (31,663 | ) | (17,068 | ) | (19,574 | ) | |
| Total finance expenses, net | (1,169 | ) | (18,360 | ) | (5,183 | ) | (14,512 | ) | |
| Profit (loss) before tax and equity loss | 71,369 | 10,437 | 28,307 | (801 | ) | ||||
| Share of loss of equity accounted investees | (368 | ) | (70 | ) | (163 | ) | (11 | ) | |
| Profit (loss) before income taxes | 71,001 | 10,367 | 28,144 | (812 | ) | ||||
| Taxes on income | (15,294 | ) | (2,504 | ) | (5,713 | ) | (196 | ) | |
| Profit (loss) for the period | 55,707 | 7,863 | 22,431 | (1,008 | ) | ||||
| Profit (loss) for the period attributed to: | |||||||||
| Owners of the Company | 38,541 | 2,679 | 14,547 | (2,112 | ) | ||||
| Non-controlling interests | 17,166 | 5,184 | 7,884 | 1,104 | |||||
| 55,707 | 7,863 | 22,431 | (1,008 | ) | |||||
| Earnings (loss) per ordinary share (in USD) | |||||||||
| with a par value of NIS 0.1, attributable to | |||||||||
| owners of the parent Company: | |||||||||
| Basic earnings (loss) per share | 0.34 | 0.03 | 0.12 | (0.02 | ) | ||||
| Diluted earnings (loss) per share | 0.32 | 0.03 | 0.12 | (0.02 | ) | ||||
| Weighted average of share capital used in the | |||||||||
| calculation of earnings: | |||||||||
| Basic per share | 113,564,373 | 94,566,329 | 117,638,008 | 95,596,371 | |||||
| Diluted per share | 121,823,868 | 97,214,919 | 125,873,060 | 95,659,637 | |||||
Consolidated Statements of Financial Position as of
| June 30 | December 31 | |||
| 2023 | 2022 | |||
| USD in | USD in | |||
| thousands | thousands | |||
| Assets | (Unaudited) | (Audited) | ||
| Current assets | ||||
| Cash and cash equivalents | 320,718 | 193,869 | ||
| Deposits in banks | 3,693 | 4,054 | ||
| Restricted cash | 86,909 | 92,103 | ||
| Financial assets at fair value through profit or loss | 32,948 | 33,895 | ||
| Trade receivables | 29,320 | 39,822 | ||
| Other receivables | 37,865 | 36,953 | ||
| Current maturities of contract assets | 7,533 | 7,622 | ||
| Current maturities of loans to investee entities | - | 13,893 | ||
| Other financial assets | 6,037 | 1,493 | ||
| Total current assets | 525,023 | 423,704 | ||
| Non-current assets | ||||
| Restricted cash | 39,305 | 38,728 | ||
| Other long term receivables | 32,597 | 6,542 | ||
| Deferred costs in respect of projects | 230,302 | 205,575 | ||
| Deferred borrowing costs | 3,685 | 6,519 | ||
| Loans to investee entities | 32,946 | 14,184 | ||
| Contract assets | 92,534 | 99,152 | ||
| Fixed assets, net | 2,509,953 | 2,220,734 | ||
| Intangible assets, net | 279,870 | 279,717 | ||
| Deferred taxes | 4,706 | 4,683 | ||
| Right-of-use asset, net | 117,006 | 96,515 | ||
| Financial assets at fair value through profit or loss | 50,838 | 42,918 | ||
| Other financial assets | 80,663 | 94,396 | ||
| Total non-current assets | 3,474,405 | 3,109,663 | ||
| Total assets | 3,999,428 | 3,533,367 |
Consolidated Statements of Financial Position as of (Cont.)
| June 30 | December 31 | ||||
| 2023 | 2022 | ||||
| USD in | USD in | ||||
| thousands | thousands | ||||
| Liabilities and equity | (Unaudited) | (Audited) | |||
| Current liabilities | |||||
| Credit and current maturities of loans from | |||||
| banks and other financial institutions | 216,098 | 165,627 | |||
| Trade payables | 25,954 | 34,638 | |||
| Other payables | 65,552 | 77,864 | |||
| Current maturities of debentures | 15,058 | 15,832 | |||
| Current maturities of lease liability | 5,833 | 5,850 | |||
| Financial liabilities through profit or loss | 44,863 | 35,283 | |||
| Other financial liabilities | 9,902 | 50,255 | |||
| Total current liabilities | 383,260 | 385,349 | |||
| Non-current liabilities | |||||
| Debentures | 226,088 | 238,520 | |||
| Convertible debentures | 126,459 | 131,385 | |||
| Loans from banks and other financial institutions | 1,532,268 | 1,419,057 | |||
| Loans from non-controlling interests | 92,312 | 90,908 | |||
| Financial liabilities through profit or loss | 32,706 | 48,068 | |||
| Deferred taxes | 37,553 | 14,133 | |||
| Employee benefits | 8,463 | 12,238 | |||
| Lease liability | 115,064 | 93,773 | |||
| Asset retirement obligation | 50,480 | 49,902 | |||
| Total non-current liabilities | 2,221,393 | 2,097,984 | |||
| Total liabilities | 2,604,653 | 2,483,333 | |||
| Equity | |||||
| Ordinary share capital | 3,284 | 2,827 | |||
| Share premium | 1,028,395 | 762,516 | |||
| Capital reserves | 52,689 | 30,469 | |||
| Proceeds on account of convertible options | 15,496 | 15,496 | |||
| Accumulated profit (loss) | 31,327 | (7,214 | ) | ||
| Equity attributable to shareholders of the Company | 1,131,191 | 804,094 | |||
| Non-controlling interests | 263,584 | 245,940 | |||
| Total equity | 1,394,775 | 1,050,034 | |||
| Total liabilities and equity | 3,999,428 | 3,533,367 | |||
Consolidated Statements of Cash Flows
| For the six months period ended June 30 | For the three months period ended June 30 | |||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| USD in | USD in | USD in | USD in | |||||
| Thousands | Thousands | Thousands | Thousands | |||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||
| Cash flows for operating activities | ||||||||
| Profit (loss) for the period | 55,707 | 7,863 | 22,431 | (1,008 | ) | |||
| Adjustments required to present cash flows from operating activities (Annex A) | 49,405 | 30,702 | 21,917 | 23,540 | ||||
| Cash from operating activities | 105,112 | 38,565 | 44,348 | 22,532 | ||||
| Interest receipts | 7,791 | 1,457 | 3,240 | 1,068 | ||||
| Interest paid | (22,695 | ) | (15,272 | ) | (10,631 | ) | (6,768 | ) |
| Income Tax paid | (2,854 | ) | (1,741 | ) | (2,406 | ) | (1,501 | ) |
| Repayment of contract assets | 7,447 | 10,699 | 4,807 | 4,985 | ||||
| Net cash from operating activities | 94,801 | 33,708 | 39,358 | 20,316 | ||||
| Cash flows for investing activities | ||||||||
| Restricted cash, net | 2,006 | (72,593 | ) | (16,684 | ) | (56,595 | ) | |
| Purchase, development, and construction of fixed assets | (345,291 | ) | (246,689 | ) | (208,092 | ) | (104,715 | ) |
| Investment in deferred costs in respect of projects | (14,331 | ) | (16,766 | ) | (2,752 | ) | (7,674 | ) |
| Proceeds from sale (purchase) of short-term financial assets measured at fair value through profit or loss, net | (155 | ) | 190 | (816 | ) | 853 | ||
| Changes in bank deposits | 450 | - | (946 | ) | - | |||
| Loans provided to investee, net | (8,903 | ) | (1,519 | ) | (21,161 | ) | (1,519 | ) |
| Payments on account of acquisition of consolidated company | (1,073 | ) | (1,202 | ) | - | (1,202 | ) | |
| Investment in investee | (65 | ) | (98 | ) | (53 | ) | (98 | ) |
| Purchase of long-term financial assets measured at fair value through profit or loss | (5,682 | ) | - | (2,478 | ) | - | ||
| Net cash used in investing activities | (373,044 | ) | (338,677 | ) | (252,982 | ) | (170,950 | ) |
Consolidated Statements of Cash Flows (Cont.)
| For the six months period ended June 30 | For the three months period ended June 30 | |||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| USD in | USD in | USD in | USD in | |||||
| Thousands | Thousands | Thousands | Thousands | |||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||
| Cash flows from financing activities | ||||||||
| Receipt of loans from banks and other financial institutions | 202,542 | 213,998 | 33,001 | 103,112 | ||||
| Repayment of loans from banks and other financial institutions | (42,748 | ) | (24,032 | ) | (29,613 | ) | (12,548 | ) |
| Issuance of convertible debentures | - | 47,578 | - | - | ||||
| Repayment of debentures | (1,300 | ) | (1,463 | ) | - | - | ||
| Dividends and distributions by subsidiaries to non-controlling interests | (5,227 | ) | (3,113 | ) | (3,247 | ) | (2,982 | ) |
| Proceeds in respect of derivative financial instruments | - | 4,392 | - | 4,392 | ||||
| Deferred borrowing costs | (1,041 | ) | (2,637 | ) | (36 | ) | (1,046 | ) |
| Receipt of loans from non-controlling interests | 274 | 19,278 | 274 | - | ||||
| Repayment of loans from non-controlling interests | (663 | ) | (2,387 | ) | - | (2,244 | ) | |
| Issuance of shares | 266,635 | 69,293 | (3,166 | ) | - | |||
| Repayment of lease liability | (2,931 | ) | (2,715 | ) | (536 | ) | (702 | ) |
| Proceeds from investment in entities by non-controlling interest | 2,679 | 775 | - | 613 | ||||
| Net cash from (used in) financing activities | 418,220 | 318,967 | (3,323 | ) | 88,595 | |||
| Increase (Decrease) in cash and cash | ||||||||
| equivalents | 139,977 | 13,998 | (216,947 | ) | (62,039 | ) | ||
| Balance of cash and cash equivalents at | ||||||||
| beginning of period | 193,869 | 265,933 | 542,467 | 338,878 | ||||
| Effect of exchange rate fluctuations on cash and cash equivalents | (13,128 | ) | (29,378 | ) | (4,802 | ) | (26,286 | ) |
| Cash and cash equivalents at end of period | 320,718 | 250,553 | 320,718 | 250,553 | ||||
Consolidated Statements of Cash Flows (Cont.)
| For the six months period ended June 30 | For the three months period ended June 30 | |||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| USD in | USD in | USD in | USD in | |||||
| Thousands | Thousands | Thousands | Thousands | |||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||
| Annex A - Adjustments Required to Present Cash | ||||||||
| Flows From operating activities: | ||||||||
| Income and expenses not associated with cash | ||||||||
| flows: | ||||||||
| Depreciation and amortization | 26,777 | 17,032 | 13,637 | 10,017 | ||||
| Finance expenses in respect of project finance loans | 31,939 | 26,090 | 17,203 | 16,319 | ||||
| Finance expenses in respect of loans from non-controlling interests | 737 | 450 | 366 | 219 | ||||
| Finance expenses (income) in respect of contingent consideration | (6,303 | ) | 1,900 | (6,501 | ) | 529 | ||
| Interest income from deposits | (6,093 | ) | - | (3,077 | ) | - | ||
| Fair value changes of financial instruments measured at fair value through profit or loss | (2,423 | ) | 591 | (458 | ) | 691 | ||
| Share-based compensation | 2,850 | 5,110 | 1,461 | 2,629 | ||||
| Deferred taxes | 8,664 | 1,130 | 3,524 | (250 | ) | |||
| Finance expenses in respect of lease liability | 1,089 | 853 | 539 | 521 | ||||
| Finance income in respect of contract asset | (5,950 | ) | (11,431 | ) | (3,075 | ) | (3,949 | ) |
| Exchange rate differences and others | (1,689 | ) | (1,050 | ) | (542 | ) | (1,112 | ) |
| Interest income from loans to investees | (448 | ) | (539 | ) | (241 | ) | (222 | ) |
| Company’s share in losses of investee partnerships | 367 | 71 | 162 | 12 | ||||
| Finance expenses (income) in respect of forward transaction | (2,979 | ) | 823 | (2,680 | ) | 685 | ||
| 46,538 | 41,030 | 20,318 | 26,089 | |||||
| Changes in assets and liabilities items: | ||||||||
| Change in other receivables | (13,331 | ) | (851 | ) | (15,148 | ) | (335 | ) |
| Change in trade receivables | 10,837 | (10,057 | ) | 13,221 | (2,079 | ) | ||
| Change in other payables | 5,530 | 1,947 | 4,502 | 440 | ||||
| Change in trade payables | (169 | ) | (1,367 | ) | (976 | ) | (575 | ) |
| 2,867 | (10,328 | ) | 1,599 | (2,549 | ) | |||
| 49,405 | 30,702 | 21,917 | 23,540 | |||||
Segmental Reporting
| For the six months ended June 30, 2023 | |||||||||
| Israel | Central- Eastern Europe | Western Europe | Management and construction | Total reportable segments | Adjustments | Total | |||
| USD in thousands | |||||||||
| (Unaudited) | |||||||||
| External revenues | 29,757 | 44,337 | 45,193 | 4,270 | 123,557 | - | 123,557 | ||
| Inter-segment revenues | - | - | - | 2,642 | 2,642 | (2,642 | ) | - | |
| Total revenues | 29,757 | 44,337 | 45,193 | 6,912 | 126,199 | (2,642 | ) | 123,557 | |
| Segment Adjusted | |||||||||
| EBITDA | 30,450 | 37,438 | 46,647 | 1,794 | 116,329 | - | 116,329 | ||
| Reconciliations of unallocated amounts: | |||||||||
| Headquarter costs (*) | (14,493 | ) | |||||||
| Intersegment profit | 701 | ||||||||
| Repayment of contract asset under concession arrangements | (7,447 | ) | |||||||
| Depreciation and amortization and share based compensation | (29,627 | ) | |||||||
| Other incomes not attributed to segments | 7,075 | ||||||||
| Operating profit | 72,538 | ||||||||
| Finance income | 32,262 | ||||||||
| Finance expenses | (33,431 | ) | |||||||
| Share in the losses of equity accounted investees | (368 | ) | |||||||
| Profit before income taxes | 71,001 | ||||||||
| (*) | Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation). |
Segmental Reporting (cont.)
| For the six months ended June 30, 2022 | |||||||||
| Israel | Central- Eastern Europe | Western Europe | Management and construction | Total reportable segments | Adjustments | Total | |||
| USD in thousands | |||||||||
| (Unaudited) | |||||||||
| External revenues | 22,685 | 37,946 | 9,596 | 4,712 | 74,939 | - | 74,939 | ||
| Inter-segment revenues | - | - | - | 3,216 | 3,216 | (3,216 | ) | - | |
| Total revenues | 22,685 | 37,946 | 9,596 | 7,928 | 78,155 | (3,216 | ) | 74,939 | |
| Segment Adjusted | |||||||||
| EBITDA | 28,625 | 30,773 | 7,480 | 2,573 | 69,451 | - | 69,451 | ||
| Reconciliations of unallocated amounts: | |||||||||
| Headquarter costs (*) | (7,670 | ) | |||||||
| Intersegment profit | (143 | ) | |||||||
| Repayment of contract asset under concession arrangements | (10,699 | ) | |||||||
| Depreciation and amortization and share based compensation | (22,142 | ) | |||||||
| Operating profit | 28,797 | ||||||||
| Finance income | 13,303 | ||||||||
| Finance expenses | (31,663 | ) | |||||||
| Share in the losses of equity accounted investees | (70 | ) | |||||||
| Profit before income taxes | 10,367 | ||||||||
| (*) | Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation). |
Segmental Reporting (cont.)
| For the three months ended June 30, 2023 | |||||||||
| Israel | Central- Eastern Europe | Western Europe | Management and construction | Total reportable segments | Adjustments | Total | |||
| USD in thousands | |||||||||
| (Unaudited) | |||||||||
| External revenues | 15,919 | 21,102 | 13,405 | 2,137 | 52,563 | - | 52,563 | ||
| Inter-segment revenues | - | - | - | 1,246 | 1,246 | (1,246 | ) | - | |
| Total revenues | 15,919 | 21,102 | 13,405 | 3,383 | 53,809 | (1,246 | ) | 52,563 | |
| Segment Adjusted | |||||||||
| EBITDA | 16,987 | 17,691 | 18,740 | 1,043 | 54,461 | - | 54,461 | ||
| Reconciliations of unallocated amounts: | |||||||||
| Headquarter costs (*) | (8,438 | ) | |||||||
| Intersegment profit | 297 | ||||||||
| Repayment of contract asset under concession arrangements | (4,807 | ) | |||||||
| Depreciation and amortization and share based compensation | (15,098 | ) | |||||||
| Other incomes not attributed to segments | 7,075 | ||||||||
| Operating profit | 33,490 | ||||||||
| Finance income | 11,885 | ||||||||
| Finance expenses | (17,068 | ) | |||||||
| Share in the losses of equity accounted investees | (163 | ) | |||||||
| Profit before income taxes | 28,144 | ||||||||
| (*) | Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation). |
Segmental Reporting (cont.)
| For the three months ended June 30, 2022 | |||||||||
| Israel | Central -Eastern Europe | Western Europe | Management and construction | Total reportable segments | Adjustments | Total | |||
| USD in thousands | |||||||||
| (Unaudited) | |||||||||
| External revenues | 17,996 | 16,616 | 3,007 | 2,260 | 39,879 | - | 39,879 | ||
| Inter-segment revenues | - | - | - | 1,622 | 1,622 | (1,622 | ) | - | |
| Total revenues | 17,996 | 16,616 | 3,007 | 3,882 | 41,501 | (1,622 | ) | 39,879 | |
| Segment Adjusted | |||||||||
| EBITDA | 19,943 | 12,888 | 1,622 | 1,218 | 35,671 | - | 35,671 | ||
| Reconciliations of unallocated amounts: | |||||||||
| Headquarter costs (*) | (4,404 | ) | |||||||
| Intersegment profit | 75 | ||||||||
| Repayment of contract asset under concession arrangements | (4,985 | ) | |||||||
| Depreciation and amortization and share based compensation | (12,646 | ) | |||||||
| Operating profit | 13,711 | ||||||||
| Finance income | 5,062 | ||||||||
| Finance expenses | (19,574 | ) | |||||||
| Share in the losses of equity accounted investees | (11 | ) | |||||||
| Profit before income taxes | (812 | ) | |||||||
| (*) | Including general and administrative and development expenses (excluding depreciation and amortization and share based compensation). |
Appendix 2 - Reconciliations between Net Income to Adjusted EBITDA
| ($ thousands) | For the six months ended at | For the three months ended at | ||||||
| 06/30/23 | 06/30/22 | 06/30/23 | 06/30/22 | |||||
| Net Income (loss) | 55,707 | 7,863 | 22,431 | (1,008 | ) | |||
| Depreciation and amortization | 26,777 | 17,032 | 13,637 | 10,017 | ||||
| Share based compensation | 2,850 | 5,110 | 1,461 | 2,629 | ||||
| Finance income | (32,262 | ) | (13,303 | ) | (11,885 | ) | (5,062 | ) |
| Finance expenses | 33,431 | 31,663 | 17,068 | 19,574 | ||||
| Non-recurring other income (*) | (7,075 | ) | - | (7,075 | ) | - | ||
| Share of losses of equity accounted investees | 368 | 70 | 163 | 11 | ||||
| Taxes on income | 15,294 | 2,504 | 5,713 | 196 | ||||
| Adjusted EBITDA | 95,090 | 50,939 | 41,513 | 26,357 | ||||
| (*) | Non-recurring other income comprised the recognition of income related to reduced earnout payments expected to be incurred for the acquisition of Clenera for early-stage projects. |
Appendix 3 - Mature Projects: 4.6 GW and 3.6 GWh operational by 2025
Appendix 4 - Mature Projects information
a) Segment information: Operational projects
| ($ thousands) | 6 Months ended June 30 | 3 Months ended June 30 | ||||||||||||||||||||||
| Operational Project Segments | Installed Capacity (MW) | Installed Storage (MWh) | Generation (GWh) | Reported Revenue* | Segment Adjusted EBITDA**** | Generation (GWh) | Reported Revenue* | Segment Adjusted EBITDA**** | ||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Israel* | 237 | - | 275 | 234 | 29,757 | 22,685 | 30,450 | 28,613 | 151 | 168 | 15,919 | 17,996 | 16,987 | 19,931 | ||||||||||
| Western Europe**** | 831 | - | 675 | 185 | 45,193 | 9,596 | 46,647 | 7,477 | 259 | 70 | 13,405 | 3,007 | 18,740 | 1,619 | ||||||||||
| Central & Eastern Europe | 316 | - | 400 | 379 | 44,337 | 37,946 | 37,438 | 30,760 | 180 | 165 | 21,102 | 16,616 | 17,691 | 12,875 | ||||||||||
| Total Consolidated | 1,384 | - | 1,350 | 798 | 119,287 | 70,227 | 114,535 | 66,850 | 590 | 404 | 50,426 | 37,619 | 53,418 | 34,425 | ||||||||||
| Unconsolidated at Share | 12 | - | ||||||||||||||||||||||
| Total | 1,396 | - | ||||||||||||||||||||||
| Total Consolidated H1 Segment Adjusted EBITDA | 114,535 | |||||||||||||||||||||||
| Less: H1 EBITDA for projects that were not fully operational for H1 (Bjorn) | (11,897) | |||||||||||||||||||||||
| Annualized Consolidated Adjusted EBITDA** | 205,276 | |||||||||||||||||||||||
| Invested capital for projects that were fully operational as of January 1st 2023*** | 1,600,000 | |||||||||||||||||||||||
| Asset Level Return on Project Costs | 12.8% | |||||||||||||||||||||||
| * | In addition to our reported revenue, we generated $8m and $6m in the 6 months and 3 months respectively ,ended June 23 of proceeds from the sale of electricity under long terms PPAs which are not treated as revenue (projects treated as Financial Assets) | |
| ** | We use an annualized total amount of Segment Adjusted EBITDA given the rapid growth of our Operational Projects between quarters, which resulted in rapid growth in our Segment Adjusted EBITDA in between quarters. In addition, our geographic and technological diversity substantially mitigates any seasonal effects. | |
| *** | Invested capital in a project reflects the total cost we incurred to complete the development and construction of such project. | |
| **** | EBITDA results for 2023 included $8m of compensation recognized from Siemens Gamesa due to the delay in reaching full production at Project Björnberget | |
b) Operational Projects Further Detail
| ($ thousands) | 6 Months ended June 30, 2023 | 3 Months ended June 30, 2023 | |||||||||||||
| Operational Project | Segment | Installed Capacity (MW) | Installed Storage (MWh) | Reported Revenue* | Segment Adjusted EBITDA** | Reported Revenue* | Segment Adjusted EBITDA** | Debt balance as of June 30, 2023 | Ownership % | ||||||
| Emek Habacha | Israel | 109 | - | 14,271 | 6,865 | 160,433 | 41% | ||||||||
| Haluziot | Israel | 55 | - | 9,877 | 6,182 | 174,438 | 90% | ||||||||
| Sunlight 1+2 | Israel | 42 | - | 3,384 | 1,972 | 53,375 | 75% | ||||||||
| Israel Solar Projects* | Israel | 31 | - | 2,225 | 900 | 115,832 | 98% | ||||||||
| Total Israel | 237 | - | 29,757 | 30,450 | 15,919 | 16,987 | 504,079 | ||||||||
| Gecama | W. Europe | 329 | - | 30,355 | 9,457 | 165,926 | 72% | ||||||||
| Bjorenberget** | W. Europe | 372 | - | 4,602 | 1,298 | 172,585 | 55% | ||||||||
| Picasso | W. Europe | 116 | - | 9,063 | 2,185 | 81,635 | 69% | ||||||||
| Tully | W. Europe | 14 | - | 1,174 | 465 | 12,406 | 50% | ||||||||
| Total Western Europe | 831 | - | 45,193 | 46,647 | 13,405 | 18,740 | 432,551 | ||||||||
| Selac | CEE | 105 | - | 14,800 | 6,760 | 101,182 | 60% | ||||||||
| Blacksmith | CEE | 105 | - | 17,920 | 8,082 | 96,607 | 50% | ||||||||
| Lukovac | CEE | 49 | - | 7,883 | 3,608 | 42,516 | 50% | ||||||||
| Attila | CEE | 57 | - | 3,735 | 2,651 | 36,944 | 50% | ||||||||
| Total Central and Eastern Europe ("CEE") | 316 | - | 44,337 | 37,438 | 21,102 | 17,691 | 277,249 | ||||||||
| Total Consolidated Projects | 1,384 | - | 119,288 | 114,535 | 50,426 | 53,418 | 1,213,879 | ||||||||
| Uncons. Projects at share | 12 | 50% | |||||||||||||
| Total | 1,396 | - | 119,288 | 114,535 | 50,426 | 53,418 | 1,213,879 | ||||||||
| ($ millions) | |||||||||||||||
| Operational after financial statements | Segment | Installed Capacity (MW) | Installed Storage (MWh) | Est. First Full Year Revenue | Est. First Full Year EBITDA | Debt balance as of June 30, 2023 | Ownership % | ||||||||
| Solar+Storage Cluster | Israel | 23 | 40 | 4 | 3 | - | 100% | ||||||||
| AC/DC | Hungary | 26 | - | 2 | 2 | - | 100% | ||||||||
| Apex Solar | United States | 105 | - | 12 | 8 | 117 | 100% | ||||||||
| Total | 154 | 40 | 18 | 13 | 117 | ||||||||||
| * | In addition to our reported revenue, we generated $8m and $6m in the 6 months and 3 months respectively ,ended June 23 of proceeds from the sale of electricity under long terms PPAs which are not treated as revenue (projects treated as Financial Assets) | |
| ** | EBITDA results for 2023 included $8m of compensation recognized from Siemens Gamesa due to the delay in reaching full production at Project Björnberget |
c) Projects under construction
Consolidated Projects ($ millions)* | Country | Capacity (MW) | Storage Capacity (MWh) | Est. COD | Est. Total Project Cost | Capital Invested as of June 30, 2023 | Est. Equity Required (%) | Equity Invested as of June 30, 2023 | Est. Tax Equity (% of project cost)** | Debt balance as of June 30, 2023 | Est. First Full Year Revenue | Est. First Full Year EBITDA**** | Ownership %***** | |||
| Atrisco Solar | United States | 364 | 1,200 | H1 2024 | 824-866*** | 217 | 12.5% | 217 | 55% | - | 51-53 | 43-45 | 100% | |||
| Genesis Wind + Expansion | Israel | 207 | - | H2 2023 | 331-348 | 326 | 15% | 51 | N/A | 275 | 49-51 | 39-41 | 54% | |||
| Solar+Storage Clusters | Israel | 225 | 434 | H2 2023 – H1 2024 | 282-297 | 149 | 25% | 125 | N/A | 24 | 31-32 | 22-23 | 68% | |||
| Tapolca | Hungary | 60 | - | H1 2024 | 50-52 | 16 | 35% | 16 | N/A | - | 9-10 | 8-9 | 100% | |||
| Pupin | Serbia | 94 | - | H2 2025 | 149-157 | 7 | 30% | 7 | N/A | - | 25-26 | 16-17 | 100% | |||
| Total Consolidated Projects | 950 | 1,634 | 1,636-1,720 | 715 | 416 | 299 | 165-172 | 128-135 | ||||||||
| Uncons. Projects at share | Israel | 19 | 16 | H1 2024 | 18-19 | 14 | 30% | 14 | N/A | - | 2 | 2 | 50% | |||
| Total | 969 | 1,650 | 1,654-1,739 | 729 | 430 | 299 | 167-174 | 130-137 | ||||||||
| * | For projects not located in the United States, the conversion into U.S. dollars was based on foreign exchange rates as of the date of the financial statements (June 30, 2023) | |
| ** | Total tax equity investment anticipated as a percentage of total project costs | |
| *** | Project costs for Atrisco are presented as net of reimbursable network upgrades of $68m which are to be reimbursed in first five years of project | |
| **** | EBITDA does not include recognition of PTC or ITC tax credits. EBITDA is a non-IFRS financial measure. The Company is unable to provide a reconciliation of EBITDA to Net Income on a forward-looking basis without unreasonable effort because items that impact this IFRS financial measure are not within the Company’s control and/or cannot be reasonably predicted. | |
| ***** | The legal ownership share for all U.S. projects is 90%, but Enlight invests 100% of the equity in the project and entitled to 100% of the project distributions until full repayment of Enlight capital plus a preferred return |
d) Pre-Construction Projects (due to commence construction within 12 months of the Approval Date)
| Major Projects ($ millions)* | Country | Generation Capacity (MW) | Storage Capacity (MWh) | Est. COD | Est. Total Project Cost | Capital Invested as of June 30, 2023 | Est. Equity Required (%) | Equity Invested as of June 30, 2023 | Est. Tax Equity (% of project cost)** | Est. First Full Year Revenue | Est. First Full Year EBITDA*** | Ownership %**** | |||
| CoBar Complex | United States | 1,210 | 824 | 2025 | 1,595-1,677 | 24 | 18% | 24 | 47% | 103-109 | 81-85 | 100% | |||
| Rustic Hills | United States | 256 | - | H1 2025 | 304-320 | 5 | 18% | 5 | 52% | 16-17 | 13-14 | 100% | |||
| Roadrunner | United States | 250 | 800 | H1 2026 | 565-593 | 1 | 15% | 1 | 51% | 41-43 | 32-33 | 100% | |||
| Gecama Solar | Spain | 250 | 200 | H2 2024 | 244-257 | 1 | 50% | 1 | N/A | 38-40 | 32-33 | 72% | |||
| Other Projects ($ millions)* | MW Deployment | Storage Capacity (MWh) | Est. Total Project Cost | Capital Invested as of June 30, 2023 | Est. Equity Required (%) | Equity Invested as of June 30, 2023 | Est. Tax Equity (% of project cost)** | Est. First Full Year Revenue | Est. First Full Year EBITDA*** | Ownership %**** | ||||||
| 2023 | 2024 | 2025 | ||||||||||||||
| United States | - | - | 319 | - | 386-406 | 11 | 21% | 11 | 44% | 25-26 | 19-20 | 100% | ||||
| Europe | - | 400 | 115-121 | - | 45% | - | N/A | 34-36 | 15--16 | 100% | ||||||
| Israel | - | - | 38 | 406 | 177-186 | 2 | 28% | 2 | N/A | 39-41 | 14-15 | 70% | ||||
| Total | - | - | 357 | 806 | 678-713 | 13 | 13 | 98-103 | 48-51 | |||||||
| Uncons. projects at share | - | - | 20 | 50 | 27-28 | - | 30% | - | N/A | 3 | 2 | 50% | ||||
| Total Pre-Construction | 2,344 | MW | 2,680 MWh | 3,413-3,588 | 44 | 44 | 299-315 | 208-218 | ||||||||
| * | For projects not located in the United States, the conversion into U.S. dollars was based on foreign exchange rates as of the date of the financial statements (June 30, 2023) | |
| ** | Total tax equity investment anticipated as a percentage of total project costs | |
| *** | EBITDA does not include recognition of PTC or ITC tax credits. EBITDA is a non-IFRS financial measure. The Company is unable to provide a reconciliation of EBITDA to Net Income on a forward-looking basis without unreasonable effort because items that impact this IFRS financial measure are not within the Company’s control and/or cannot be reasonably predicted | |
| **** | The legal ownership share for all U.S. projects is 90%, but Enlight invests 100% of the equity in the project and entitled to 100% of the project distributions until full repayment of Enlight capital plus a preferred return |
Appendix 5 – Corporate level (TopCo) debt
| ($ thousands) | June 30, 2023 |
| Debentures: | |
| Debentures | 241,146* |
| Convertible debentures | 126,459 |
| Loans from banks and other financial institutions: | |
| Loans from banks and other financial institutions | 116,011 |
| Total corporate level debt | 483,616 |
| * | Including current maturities of debentures in the amount of 15,058 |
Appendix 6 – Functional Currency Conversion Rates:
The financial statements of each of the Company’s subsidiaries were prepared in the currency of the main economic environment in which it operates (hereinafter: the “Functional Currency”). For the purpose of consolidating the financial statements, results and financial position of each of the Group’s member companies are translated into the Israeli shekel (“NIS”), which is the Company’s Functional Currency. The Group’s consolidated financial statements are presented in U.S. dollars (“USD”).
FX Rates to USD:
| Date of the financial statements: | Euro | NIS |
| As of 30th June 2023 | 1.09 | 0.27 |
| As of 30th June 2022 | 1.05 | 0.29 |
| Average for the 3 months period ended: | ||
| June 2023 | 1.09 | 0.27 |
| June 2022 | 1.06 | 0.30 |
| Last Trade: | US$16.44 |
| Daily Change: | 0.30 1.86 |
| Daily Volume: | 2,916 |
| Market Cap: | US$1.950B |
November 13, 2024 November 07, 2024 October 14, 2024 September 11, 2024 August 18, 2024 | |
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