Atlantica Sustainable Infrastructure plc(AY) - 2021 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported revenue of $140.4 million for the first nine months of 2021, representing an 8.4% growth on a comparable basis, excluding foreign exchange and non-recurring impacts [6] - Adjusted EBITDA increased by 2.1% to $634.1 million, with cash available for distribution reaching $168.5 million, a 12.9% year-over-year increase [6][9] - CAFD per share stood at $1.52 year-to-date, reflecting a growth of 3.6% year-over-year [6] Business Line Data and Key Metrics Changes - In North America, revenue increased by 15% to $308.7 million, while EBITDA rose by 2% due to recently acquired assets [7] - South America saw revenue and EBITDA growth of 5% and 1% respectively, attributed to recent investments [7] - EMEA region's EBITDA increased by 2% compared to the first nine months of 2020, driven by new assets and foreign exchange differences [7] Market Data and Key Metrics Changes - Electricity produced by renewable assets reached 3,460 gigawatt hours, a 33% increase compared to the same period in 2020, largely due to contributions from recently acquired assets [8] - Production in South Africa and Spain benefited from higher solar radiation, while lower-than-expected solar and wind resources were noted in the U.S. and other regions [8] Company Strategy and Development Direction - The company has made significant progress in its growth investment plan, with over $460 million invested year-to-date, exceeding the guidance of $300 million [10] - Future growth opportunities are focused on North America, South America, and certain areas in Europe, with a strategy that includes co-investment with third parties [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the impact of the U.S. infrastructure bill on finding acquisition targets and facilitating larger investments [13] - The company is aware of inflationary pressures and supply chain issues but believes the impact on its cash flow will be limited due to its business model [23] Other Important Information - The company has received recognition for its commitment to sustainability, including the Terra Carta Seal and approval of its emissions targets by the Science Based Targets initiative [4][5] Q&A Session Summary Question: Impact of the U.S. infrastructure bill on acquisition targets - Management believes the infrastructure bill will positively impact the sector and assist in finding acquisition targets [13] Question: Potential expansion of existing sites and new technologies - Management sees opportunities for investment in existing plants and hybrid technologies, including storage and hydrogen [15] Question: Concerns about battery component replacement cycles - Management acknowledged uncertainty regarding battery maintenance capex but remains a prudent investor [17] Question: Growth opportunities outside the U.S. - Management continues to focus on South America and certain areas in Europe for growth opportunities [20] Question: Inflationary pressures and supply chain issues - Management noted limited impact on cash flow due to the business model, despite market-wide supply chain challenges [23] Question: Operational performance of assets and updates on Pemex - Management reported significant improvements in operational performance and the situation with Pemex has also improved [24]