Earnings call transcript Q1 2023

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Santiago Seage

Thank you very much. Good morning, and thank you for joining for our First Quarter 2023 Conference Call. I will start with a couple of messages before Francisco takes us through our results.

In the first quarter, revenue and adjusted EBITDA increased by 1.5% and 4%, respectively, on a comparable basis, while cash available for distribution increased by 4.6% year-over-year on a comparable basis.

Francisco Martinez-Davis

Okay. Santiago. you, Thank Slide to and morning good Please number everyone. to turn X,

which present X, a XXXX. financials million, of growth foreign number to the Slide on EBITDA million, basis, our a Revenue a comparable on I $XXX.X exchange. of In X% effect quarter representing will key an comparable excluding of X.X% basis. first for reached amounted Adjusted represents $XXX.X the increase

increase equity quarter of distribution, for generated million of we Without $X.X XXXX, have CAFD first from in part an our this year-over-year. Regarding sale cash available would partner. company increased million XX.X% in $XX to includes interest This of the X.X% a by development impact, Colombia the of in our year-over-year.

you and mainly decrease by our the revenue compared in quarter. Arizona X, can same in and North $XX.X America, XXXX of On see business The lower by In first last the California geography was the X% to solar in the to in resource due period decreased to million slide, performance sector. of following quarter number year.

revenue was increased newly assets, America, increased to and operation assets in contracts. to the we've mechanisms EBITDA our compared This million, XX% of to XXXX, South In up first X $XX.X million. $XX.X entered recently XX% mainly and to due increase months by which consolidated inflation indexation

in adjusted assets mostly compared indexation lower currency Spain. in EMEA by our expenses due the basis, inflation production constant EBITDA first XXXX. higher in and and the at to million On quarter solar also This to to a $XX operating region increased Kaxu of XX% was

effects. sector, Looking we below business results at can see similar the by

have performance. months of review by number the where we XXXX, good will period radiation Electricity renewable mainly XXXX, solar X an was assets increase reached Spain, first of our hours in to X, in in consolidated Let's assets period recently. the the assets of now versus the in contribution same to in from our and those in operation turn gigawatt Slide solar X.X produced recently increase X% please the entered that due to very the our where production operational and

heat at our mainly lines high overhaul Looking the our impact transmission a availability revenue. decreased gas very to due which of and in contracts, water major availability assets scheduled in did efficient achieve segment XXXX. natural continue our not availability-based levels first quarter And to and

billion, like debt On would as to of the Net March a XXXX. slight XX, number $X.X net versus position. next slide, X, March debt we our increase XXXX, was review XX,

net addition, ratio closed to $XXX service pre-corporate net the In times. debt stood debt our X.X with we quarter million. With at CAFD corporate debt corporate of this,

for this, you I conclude us. With Thank joining today's presentation.

for are we questions. ready will the We now for are line - Operator, now open open we Q&A.

Operator

comes question Thank [Operator today Instructions] ahead. you. from go first of line from the Angie Please Storozynski Our Seaport.

is line open. now Your

Angie Storozynski

Good morning. you. Thank

maybe So start with balance strategic their could more has flexibility shareholder sheet. on majority bit your a review, your first, of if we

didn't I So acquire now Power. Kentucky wonder just they that

- the is credit So about strategic you think expansion some review? spreads, is? of review even goal given wondering the And if that do your also how the I'm impacting in what

Santiago Seage

Good morning, Angie.

which there, that, much about expressively as the of I to supported supports fact your made The the [ph] we is more that Angie, And make that cannot one thing obviously, than speculate process. So and announcement comment I the our can I on ongoing understand. Algonquin to shareholders. question, I only regarding reference you say strategic cannot review, or can

Angie Storozynski

Understood.

their has acquire adjust third-party there their is assets assets. so in you're higher - more there now given openness change valuations trying under of higher the the of the from - you Are any so of mean, for the financing? - the current still to given cost been seeing cost basically sellers competitive status the So capital? landscape, expectations quo, basically, I to

Santiago Seage

growth strategy shared XXXX and you One and pipeline you components. on we results know, that So has is executing as our two with continue our the presentation. in on executing we development construction, our plan where

our not The very And macro second market. changes, been strategy where happening is sellers last part true, quarters and about you buyers given is the expectations It the of growth see we in have that as changes always is what meet. acquisitions, market few there, and a the mentioned. active a

but energy, a that that be time willing very see in to sellers transactions of meeting, environment that global And macro owners active buyers might been closing. have there there we market help that believing with been There and we a assets. others in will of have regard. that actually, Nevertheless, in the selling question delayed, some lots It's continue opportunities. have been be

Angie Storozynski

Okay. And lastly, such acquisitions. the financing of

size. of additions equity flexibility But CAFD have talk yourself either existing you depends for any again, issue this flexibility just of I of looking you help any Just about acquisitions, with if signs bonds in any project-level environment? sort have refinancing in or of a guess, it from to would perspective, debt to the to such financing on debt, order finance some

Francisco Martinez-Davis

Angie, it's question. Francisco. Thank you your for

As saw the our went down leverage in presentation, you the ratio quarter. in first

said, we on finance option I to said, as to room was time that I have ample have at leverage. have have And the to particular But will financing. see continue to we acquisitions. that we best the We as room

what best strategy So that need the just is. to financing see said, we

Angie Storozynski

Okay. Thank you.

Operator

Dumoulin-Smith today from go question comes next from The ahead. of you. Julien the Bank Please America. of line Thank

line is now Your open.

Julien Dumoulin-Smith

Hey. Good team. you Thank morning, very much.

achieving more low during expect pendency review? And question the Just extent the strategic - independency activity, of half? a you about [ph] of acquisitions the versus if what bit to dividend just to so, first kind curious user you would Would think directly. I'm here on up growth to pursue a mid here? on last follow the of little single-digit

Santiago Seage

morning, Good Julien.

announced is we said also in about point strategy. growth the It our time, we Going acquisitions question, we development. is to right the your review, that in find at again continue about whenever developing strategic strategy we explicitly this opportunities. When would our investing

So our the growth not way. any influenced in strategy is by review

close, too investments a part on close of the and end we the and which we say, bit on still obviously, in, And let's of we to strategy a be sides the – working end be able in up to well that. soon delivering part very of QX, regarding of lower we opportunities. it's range, we point restrict that don't a this depending, and growth range at higher both At the or development in acquisition this might think if time, are

Julien Dumoulin-Smith

that in or review part looking investing that? geography you strategic about just the Are of all Or or as at question at And it. assets Got here. not? assets this of selling is the is kinds you're a

Santiago Seage

is review. the I So wouldn't like again, want conducting be of respectful we... and to something are speculate we that that I a to regarding This process

Julien Dumoulin-Smith

impact we to if wondering did. said, the With the at back if can would thoughts repowering hear U.S. - have kind that was any if mean this it of to pivot I'd I I obviously, you love in Europe, acquisitions I and point.

look there as potential you coordinate you of mid that But portfolio at part European the the opportunity think about... actions on highlight continued anything response points country want year might data front effort. EU through to as for you as Is this subsidy to backdrop across an in various new on and your the that

Santiago Seage

for at about the facing never year short clearer point the view in environment Yes, IRA. ago. an In that midterm. to And clearly, from a we has say. do that that and elaborate so would I'm this repowering have attractive, regulation general, our are market of the time in I much not we a been U.S. going think some In case, is opportunities in point than I

U.S. European coming in do with regard, than that up case continue we capture Europe, are is should that see opportunities. In going the that be that programs Union opportunities. we probably the what are we But eventually, able of help believe in to We saw we to that programs lower to the think

a that Last about program. number small forward, quarter on project by European And a should are being working we they those a of become and briefly be supported will them. going about more, talking And talked there whenever realities, is be we opportunities. we hydrogen hydrogen,

Julien Dumoulin-Smith

enough. All right. it. Got Fair

you, Sounds through. like it's Thank still working its guys. way

Operator

next National ahead. Bank the go Canada. The from you. Thank Please comes Rodney of today from Eli line of question

now is line open. Your

Eli Rodney

everyone. morning, Good

Just filling for Rupert in here.

could so far. the just year Spain, throughout specifically you expectations? on if expectations? And Could see versus for year touch I rest on power First, Spanish of that's the the evolved they've sort prices you where how the how versus heading touch your and market do evolved of

Santiago Seage

not regulated. affected a bit And as So specifically IRR in and be and fluctuations a last In expected what the takes revenues be account. assets our than out affected by or or should are can short-term what assets value Spain, of you your the better were bit so the in the by into there a our what softer the at year expected. the case, bit are be end cash of futures a term, impact, Spain market a in know, saying short not regulator power are year. regulation the worse price the therefore, but in can Obviously, or certain prices

is something should At the look again, the you and half. we the regulated, we But limited. the be are, not in is in are at that this time, say, in stronger overly about. worried case prices the let's if our So market expectation, it's impact futures second point as

Eli Rodney

just looks pricing-wise. megawatts of close Okay. XX good Great. in Chile. light of one location on a solar quick you there. the of like it's recent And reaching In pretty a on financial news It

can Just cetera? wanted you expectations, give return to incremental pricing see et there's color on any if expectations,

Santiago Seage

about if properly, subject So are Chile, will under in talked in Chile. quarter, a they I regulation these certain we be construction, megawatts currently publicly are the that recall case to that XX of last

will And much reasonable market don't the as prices. locally worry that assets something return be through do will about called regulated these So need BMGD. that therefore, think locally. is to We be we

regulation, as the in short And be midterm, with reasonably thing a return even good and is that this the the we to basically what we over know returns. market visibility taking prices, are midterm good again, account which giving into but is making the going

Eli Rodney

Great. Okay.

in Thanks. from with me. comparable it So line projects. That's

Santiago Seage

Thank you.

Operator

next from The go comes the ahead. today from Mark question CIBC. you. of Thank line Please Jarvi

open. now Your line is

Mark Jarvi

and you since you updates Good have just for morning. how initiated review when for if lines might comment on some can Santiago, just evolved the you terms it's in of wondering, strategic I'm market.? time

Santiago Seage

much, on is totally might I I very putting difficult, timing be a these processes say whatever cannot off. comment

I So that. on as much probably are That's working say. we as can

Mark Jarvi

of to you're a be the of parts Fair selling as funding? while And some development. you your Would of through review? going a portfolio you're about kind on source then enough. if greenfield alongside open or open What assets comments, to acquisitions understood select select I dispositions static still

Santiago Seage

Yes.

let's review, that. say, continues [ph] As and of strategy in life we said while same the do our we the announcement is

on and of they investments they top believe from we we cash and growth, on if create continue a obviously. view, - accretive So of our that and can generation value a be that considering our opportunities point we consider, always

Mark Jarvi

Okay. Thank you.

Operator

Instructions] Thank questions waiting There you. additional are time. at [Operator this no

to conference team closing pass to the remarks. like back I'd So any over the management for

Santiago Seage

for Thank much. Thanks, you today. everybody, joining very you. Thank

Atlantica Sustainable Infrastructure (AY) 5 May 232023 Q1 Earnings call transcript