Enlight Renewable Energy .(ENLT) - 2024 Q3 - Quarterly Report

Executive Summary & Financial Highlights Enlight Renewable Energy reported strong Q3 and nine-month 2024 financial results, driven by new operational projects and improved asset performance, leading to raised full-year guidance Third Quarter and Nine Months 2024 Financial Highlights Enlight Renewable Energy reported strong financial results for Q3 and the first nine months of 2024, driven by new operational projects and improved performance from existing assets. Revenue and Adjusted EBITDA saw significant year-over-year growth, while Net Income experienced a slight decrease in Q3 and a more substantial drop over nine months, partly due to non-cash items and revaluation losses Financial Highlights (9 months ending September 30, 2024) | Metric | Amount ($m) | YoY Change | | :----------------- | :---------- | :--------- | | Revenue | 285 | +56% | | Adjusted EBITDA | 214 | +50% | | Net Income | 58 | -29% | | Cash Flow from Ops | 158 | +25% | Financial Highlights (3 months ending September 30, 2024) | Metric | Amount ($m) | YoY Change | | :----------------- | :---------- | :--------- | | Revenue | 109 | +88% | | Adjusted EBITDA | 88 | +86% | | Net Income | 24 | -7% | | Cash Flow from Ops | 66 | +115% | Full Year 2024 Guidance Update Following excellent operational performance, Enlight Renewable Energy has raised its full-year 2024 guidance for both revenue and Adjusted EBITDA, reflecting confidence in continued growth across all business areas Revised Full Year 2024 Guidance | Metric | Previous Guidance ($m) | New Guidance ($m) | Increase at Midpoint ($m) | | :-------------- | :--------------------- | :---------------- | :------------------------ | | Revenue | 345-360 | 355-370 | 10 | | Adjusted EBITDA | 245-260 | 255-270 | 10 | - The increase in guidance demonstrates confidence in positive trends and strong growth across all business areas[4] Third Quarter Business Developments Enlight achieved excellent operational performance in Q3 2024, bringing new projects online and initiating construction on major US projects, significantly expanding its portfolio across all regions Operational Performance & Project Milestones Enlight achieved excellent operational performance in Q3 2024, particularly at Israel and European wind sites, leading to high revenue and Adjusted EBITDA growth. The company also brought new projects online and initiated construction on several major US projects, significantly expanding its operational and mature phase portfolios - Generation volumes from existing projects increased by 11% year-over-year[5] - CODs achieved for Atrisco Solar in the U.S. (364 MW) and Solar and Storage in Israel (55 MW & 160 MWh), expected to generate $28-31m in revenues and $20-23m in EBITDA annually[5] - Operational portfolio grew by 418 MW and 191 MWh; Mature phase portfolio added 600 MW and 1,650 MWh[5] US Project Development Enlight significantly increased its investment in the US, with the Atrisco solar and energy storage project completing construction and expecting full COD soon. Three major projects (Country Acres, Quail Ranch, Roadrunner) commenced construction, and Snowflake A, a large solar and storage project, entered the pre-construction phase with a 20-year PPA - Atrisco solar (364 MW) achieved full COD in October, with energy storage (1.2 GWh) COD expected soon, projected to generate $51-55m in revenues and $41-45m in EBITDA annually[12] - Construction began on Country Acres, Quail Ranch, and Roadrunner (total 810 MW & 2.0 GWh), expected to generate $132-141m in revenues and $108-114m in EBITDA annually[5][12] - Snowflake A (600 MW solar, 1.9 GWh storage) entered pre-construction, secured a 20-year PPA with Arizona Public Service, and is expected to generate $115-125m in revenues and $95-105m in EBITDA annually[5][14] - Project CO Bar (1,211 MW, 824 MWh) COD delayed to 2H 2027 due to regulatory reform and interconnection hurdles[15] European Project Development Enlight's European segment saw a 24% revenue increase in Q3 2024. The Pupin project in Serbia is nearing initial COD ahead of schedule, and the Gecama Wind project in Spain demonstrated strong performance with increased volumes and effective hedging strategies. The Gecama Hybrid project is also set to begin construction - Europe segment revenues increased to $46m, up 24% from 3Q23, with operating capacity rising to 1,233 MW[16] - Pupin project in Serbia completed construction and is undergoing testing, with initial COD expected ahead of schedule[17] - Gecama Wind project in Spain saw 40% revenue increase, selling electricity at an average of EUR 96 per MWh (vs. EUR 76 last year) and production volumes up 8%[6][17] - Enlight's hedging strategy for Gecama covers 65% of anticipated generation for the rest of 2024 at EUR 100 per MWh, and 60% for 2025 at approximately EUR 65 per MWh[17] MENA Project Development The MENA segment was a significant growth driver, contributing 51% of Q3 revenues with a 223% increase from 3Q23. The Israel Solar and Storage Cluster completed its build-out, and Enlight continues to expand into Israel's deregulated power market through new corporate PPAs - MENA segment revenues increased to $56m, up 223% from 3Q23, with operating capacity rising to 705 MW and 625 MWh[17] - The Israel Solar and Storage Cluster completed its build-out with the COD of Faran, Lavi, and Mahanayim, adding 55 MW and 160 MWh[18] - The Cluster is expected to generate $34-36m in revenue and $24-26m in EBITDA in its first full operating year[18] - Signed 3 new corporate PPAs this quarter, totaling over 15 corporate PPAs in the past two years, serving Israel's deregulated power market[18] Financial Performance Overview Enlight's Q3 2024 revenues significantly increased due to new projects and existing sites, while net income saw a slight decrease, and Adjusted EBITDA surged, reflecting strong operational growth Revenue Analysis Enlight's revenues significantly increased in Q3 2024 and for the nine months ended September 30, 2024, driven by newly operational projects and higher production from existing sites. The MENA and Europe segments were the largest contributors, with the US segment showing substantial growth Revenue by Segment ($ thousands) | Segment | 9 Months Ended Sep 30, 2024 | 9 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2024 | 3 Months Ended Sep 30, 2023 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | MENA | 121,607 | 46,949 | 55,566 | 17,192 | | Europe | 147,164 | 126,701 | 46,041 | 37,171 | | USA | 8,611 | 1,965 | 5,180 | 1,965 | | Management and Construction | 7,208 | 6,261 | 2,708 | 1,991 | | Total Revenues | 284,590 | **181,87