Atlantica Sustainable Infrastructure plc(AY) - 2022 Q4 - Annual Report

Atlantica 2022 Financial Results Financial and Operational Highlights The company reported decreased revenue and Adjusted EBITDA, but achieved comparable growth, a significantly reduced net loss, and increased CAFD Full Year 2022 Financial Performance (in thousands of U.S. dollars) | Metric | 2022 | 2021 | % Change | Comparable % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1,102,029 | $1,211,749 | -9.1% | +2.9% | | Adjusted EBITDA | $797,100 | $824,388 | -3.3% | +1.5% | | Net Loss attributable to the Company | ($5,443) | ($30,080) | -81.9% | N/A | | Net cash provided by operating activities | $586,322 | $505,623 | +16.0% | N/A | | CAFD | $237,872 | $225,547 | +5.5% | N/A | Key Operational Indicators by Segment (2022 vs 2021) | Segment | Metric | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Renewable energy | MW in operation | 2,121 | 2,044 | | | GWh produced | 5,319 | 4,655 | | Efficient natural gas & heat | MW in operation | 398 | 398 | | | Availability (%) | 98.9% | 100.6% | | Transmission lines | Miles in operation | 1,229 | 1,166 | | | Availability (%) | 100.0% | 100.0% | | Water | Mft³ in operation | 17.5 | 17.5 | | | Availability (%) | 102.3% | 97.9% | Segment Performance Geographic performance varied with growth in the Americas and a decline in EMEA, while the Renewable energy segment remained the largest contributor Revenue by Geography (in thousands of U.S. dollars) | Geography | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | North America | $405,047 | $395,775 | +2.3% | | South America | $166,441 | $154,985 | +7.4% | | EMEA | $530,541 | $660,989 | -19.7% | | Total | $1,102,029 | $1,211,749 | -9.1% | Adjusted EBITDA by Business Sector (in thousands of U.S. dollars) | Business Sector | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Renewable energy | $588,016 | $602,583 | -2.4% | | Efficient natural gas & heat | $84,560 | $99,935 | -15.4% | | Transmission lines | $88,010 | $83,635 | +5.2% | | Water | $36,514 | $38,235 | -4.5% | | Total | $797,100 | $824,388 | -3.3% | - Production in the renewable energy portfolio increased by 14.3% in 2022, primarily due to contributions from recent investments and higher solar radiation in U.S. assets, though this was offset by lower resource availability in Spain and Uruguay[10] Financial Position and Shareholder Returns The company maintained a solid liquidity position, managed its debt levels, and demonstrated commitment to shareholders by approving a quarterly dividend Liquidity and Debt Debt and Liquidity Position (as of Dec 31, 2022 vs 2021) | Metric | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Corporate Liquidity | $445.9 million | $528.3 million | | Net Project Debt | $4.01 billion | $4.50 billion | | Net Corporate Debt | $956.4 million | $934.8 million | | Net Corporate Debt / CAFD pre-debt service | 3.4x | N/A | Dividend - On February 28, 2023, the Board of Directors approved a dividend of $0.445 per share, payable on March 25, 2023, to shareholders of record as of March 14, 2023[12] Corporate and Strategic Updates Atlantica received strong ESG recognition, outlined its 2023 growth investments and guidance, and initiated a process to explore strategic alternatives ESG Achievements - Atlantica has received multiple ESG recognitions, including being ranked 1st globally on GRESB's Infrastructure Public Disclosure rating, inclusion in the CDP "A List" for climate change, and being named one of the World's 100 Most Sustainable Corporations[13] Growth and Development Pipeline - The company has committed or earmarked investments for 2023 in a range of $165-$185 million, targeting battery storage, solar PV, and transmission line projects[14][16] - Atlantica has a development pipeline of approximately 2.0 GW of renewable energy and 5.6 GWh of storage, with about 18% of these projects expected to be ready-to-build in 2023 or 2024[19] 2023 Guidance 2023 Full Year Guidance | Metric | Guidance Range | | :--- | :--- | | Adjusted EBITDA | $790 million - $850 million | | CAFD | $235 million - $260 million | Strategic Review - On February 21, 2023, the board of directors initiated a process to explore and evaluate potential strategic alternatives to maximize shareholder value[22] Consolidated Financial Statements The consolidated statements show an improved net loss, total assets of $9.1 billion, and a 16% increase in net cash from operating activities Consolidated Statement of Operations Key Metrics from Statement of Operations (Year ended Dec 31, in thousands of U.S. dollars) | Line Item | 2022 | 2021 | | :--- | :--- | :--- | | Revenue | $1,102,029 | $1,211,749 | | Operating profit | $277,693 | $353,890 | | Financial expense, net | ($310,934) | ($340,892) | | Profit/(loss) for the period attributable to the Company | ($5,443) | ($30,080) | | Basic earnings per share | ($0.05) | ($0.27) | Consolidated Statement of Financial Position Key Metrics from Statement of Financial Position (As of Dec 31, in thousands of U.S. dollars) | Line Item | 2022 | 2021 | | :--- | :--- | :--- | | Total assets | $9,100,911 | $9,751,930 | | Total equity | $1,789,047 | $1,748,605 | | Long-term project debt | $4,226,518 | $4,387,674 | | Cash and cash equivalents | $600,990 | $622,689 | Consolidated Cash Flow Statement Key Metrics from Cash Flow Statement (Year ended Dec 31, in thousands of U.S. dollars) | Line Item | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $586,322 | $505,623 | | Net cash used in investing activities | ($57,438) | ($351,155) | | Net cash used in financing activities | ($535,018) | ($380,163) | | Net decrease in cash and cash equivalents | ($6,134) | ($225,695) | Reconciliation of Non-GAAP Measures This section details the reconciliation of IFRS-reported figures to the company's key non-GAAP performance metrics, Adjusted EBITDA and CAFD Reconciliation of Adjusted EBITDA and CAFD - For the full year 2022, Adjusted EBITDA of $797.1 million is reconciled from a net loss of $5.4 million by adding back items such as financial expenses, depreciation and amortization, and income tax[46] - Cash Available For Distribution (CAFD) of $237.9 million for 2022 is derived from Adjusted EBITDA by adjusting for non-monetary items, interest and tax paid, and debt principal repayments[46] CAFD per Share Calculation (Full Year) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | CAFD (in thousands) | $237,872 | $225,547 | | Weighted average shares (in thousands) | 114,695 | 111,008 | | CAFD per share | $2.0740 | $2.0318 | Reconciliation of 2023 Guidance - The 2023 CAFD guidance of $235-$260 million is reconciled from the Adjusted EBITDA guidance of $790-$850 million, with major reconciling items including net interest, tax, and principal amortization of debt[47]