Alternus Clean Energy(US:ALCE)2024-11-19 20:53Revenue and Operations - As of September 30, 2024, approximately 64% of the Company's annual revenues are generated from long-term contracts, while 36% come from sales to the general energy market[197]. - The average remaining life of the Company's feed-in tariffs (FITs) and power purchase agreements (PPAs) is 27.05 years, with pricing generally fixed for the duration of the contracts[213]. - The Company expects first and fourth quarter solar revenue to be lower than in other quarters, with approximately 15% of annual revenues generated in Q1 and 11% in Q4[216]. - Revenue for continuing operations decreased by $1.2 million for the three months ended September 30, 2024, primarily due to the sale of Italian parks in December 2023, which generated $1.2 million in 2023[234]. - Total revenue for the nine months ended September 30, 2024, was $9.891 million, a decrease of $16.235 million or 62% compared to $26.126 million in 2023[232]. - The United States generated $280,000 in revenue for the nine months ended September 30, 2024, representing a 237% increase from $83,000 in 2023[232]. - The total megawatt hours (MWh) sold for the nine months ended September 30, 2024, was 47,151 MWh, a decrease of 98,660 MWh or 68% compared to 145,811 MWh in 2023[229]. - The combined nameplate capacity of the company's renewable energy facilities for continuing operations was 3.8 MW (DC) as of September 30, 2024, down from 11.6 MW (DC) in 2023[228]. - The company’s discontinued operations reported a total revenue of $9.611 million for the nine months ended September 30, 2024, a decrease of $13.508 million or 58% from $23.119 million in 2023[232]. - Revenue for discontinued operations decreased by $5.0 million for the three months ended September 30, 2024, with a 29% year-on-year drop in Romanian revenues due to lower Green Certificates sales and energy rates[236]. - Total revenue for discontinued operations was $3,649 thousand for the three months ended September 30, 2024, a decrease of $5,010 thousand or 58% compared to the same period in 2023[238]. Financial Performance - The Company has a working capital deficiency and negative equity, raising doubts about its ability to continue as a going concern if planned financing does not complete[203]. - The company reported a net loss from continuing operations of $2.7 million for the three months ended September 30, 2024, compared to a net loss of $2.1 million in 2023[230]. - Operating expenses for the nine months ended September 30, 2024, totaled $8.198 million, an increase from $5.443 million in 2023[230]. - Gross margins were 49% of sales for the three months ended September 30, 2024, compared to 77% for the same period in 2023, mainly due to the exclusion of Italian operating parks[244]. - Selling, general and administrative expenses for continuing operations increased by $4.2 million for the nine months ended September 30, 2024, driven by higher compensation, audit, and legal costs[253]. - Total for the period, revenue decreased by $16,235 thousand or 62% compared to the same period in 2023[238]. - Net loss for continuing operations increased by $7.7 million for the nine months ended September 30, 2024, primarily due to a $2.7 million reduction in revenues and a $4.2 million increase in SG&A expenses[277]. - Net loss for discontinued operations decreased by $10.8 million for the nine months ended September 30, 2024, primarily due to a decrease in revenues of $13.5 million[278]. Debt and Financing - As of September 30, 2024, total debt was $33.534 million, an increase from $32.312 million as of December 31, 2023[281]. - Cash and cash equivalents from continuing operations decreased to $290 thousand as of September 30, 2024, down from $4.042 million as of December 31, 2023[283]. - The Company intends to finance acquisitions or growth capital expenditures using long-term non-recourse debt and retained cash flows from operations[279]. - The Company accessed capital markets several times in 2022 and 2023 but has not done so in 2024, which may affect its ability to acquire additional clean power generation assets[223]. - The Warehouse Facility of up to €500 million is currently not drawn upon, with approximately €1.8 million in arrangement and commitment fees owed[290]. - In October 2023, the Company secured a working capital loan of $3.2 million, which was later increased to $3.6 million, with interest accruing at 10%[297]. - The Company had a principal outstanding balance of $7.0 million as of September 30, 2024, with the loan currently in default, and management is in discussions to renegotiate terms[294]. Strategic Initiatives - The Company aims to own and operate over 3.0 gigawatts (GWs) of solar parks over the next five years[197]. - The Company is committed to expanding its transatlantic independent power producer (IPP) portfolio in locations that deliver higher yields and attractive returns on investments[208]. - The Company believes that the renewable energy generation segment will continue to offer growth opportunities driven by the reduction in the cost of solar technologies and government policies encouraging renewable power development[222]. - The Company intends to optimize financing sources to support long-term growth and profitability in a cost-efficient manner[208]. - The Company is actively working with global banks to secure project financing to address going concern issues[287]. - Solis accounted for 98% of group revenues for the nine months ended September 30, 2024, and was sold for €1 on October 3, 2024[289]. Operational Costs and Expenses - Development cost for continuing operations increased by $0.7 million for the three months ended September 30, 2024, primarily due to final work on abandoned renewable energy projects in Spain and the US[255]. - Development cost for the nine months ended September 30, 2024 increased by $0.4 million compared to the same period in 2023, attributed to similar project work[256]. - Depreciation, amortization, and accretion expenses for continuing operations decreased by $0.4 million for the three months ended September 30, 2024, influenced by the sale of Italian parks in December 2023[263]. - Total depreciation, amortization, and accretion expenses for the period decreased by $1.2 million for the nine months ended September 30, 2024 compared to the same period in 2023[263]. - Interest expense for the three months ended September 30, 2024 decreased by $0.165 million compared to the same period in 2023[270]. - Total other expenses for continuing operations decreased by $1.3 million for the three months ended September 30, 2024, due to reduced interest expense on US loans[270]. - Total other expenses for continuing operations increased by $2.3 million for the nine months ended September 30, 2024, compared to the same period in 2023[273]. - The Company incurred operating lease expenses of $157 thousand for the nine months ending September 30, 2024, compared to $112 thousand for the same period in 2023[305]. - The Company had total lease payments of $2,934 thousand as of September 30, 2024, with a total of $1,213 thousand after imputed interest[306].