Atlantica Yield Reports Third Quarter 2018 Financial Results
- Net profit attributable to the Company for the nine-month
period of 2018 was $120.5 million, compared with $42.6 million in
the same period of 2017.
- Revenues for the nine-month period increased +8.0%
year-over-year to $836.9 million.
- Further Adjusted EBITDA including unconsolidated affiliates1
increased by 13.6% to $714.4 million in the nine-month period of
2018, compared with $629.1 million in the same period of 2017.
- Cash available for distribution (“CAFD”) was $132.5 million in
the nine-month period of 2018; $42.7 million in the third quarter
(+16.5% vs. Q3 2017).
- Quarterly dividend of $0.36 per share declared by the Board of
Directors, representing a +24.1% increase compared with the same
quarter of 2017.
- Announcement of $245 million equity value investments with an
estimated CAFD Yield2 of 13%.
November 5, 2018 – Atlantica Yield plc (NASDAQ:
AY) (“Atlantica”), the sustainable total return company that owns a
diversified portfolio of contracted assets in the energy and
environment sectors, reported today its financial results for the
nine-month period ended September 30, 2018.
Revenues for the third quarter of 2018 were
$323.8 million, representing a 10.9% increase compared with the
third quarter of 2017. For the nine-month period of 2018,
revenues reached $836.9 million, representing an 8.0% increase
compared with the same period of 2017. Further Adjusted EBITDA
including unconsolidated affiliates was $271.2 million for the
third quarter and $714.4 million for the nine-month period of 2018,
representing an increase of 14.8% and 13.6% as compared with the
respective periods of 2017.
CAFD generation in the nine-month period of the
year reached $132.5 million (of which $42.7 million was generated
in the third quarter of 2018), compared with $132.1 million in the
same period of 2017.
Highlights
|
For the three-month period ended September
30, |
|
For the nine-month period ended September 30, |
(in thousands of U.S. dollars) |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Revenue |
$ |
323,812 |
|
$ |
291,964 |
|
$ |
836,925 |
|
$ |
775,179 |
|
Profit for the
period attributable to the Company |
|
53,162 |
|
|
29,969 |
|
|
120,512 |
|
|
42,582 |
|
Further Adjusted
EBITDA incl. unconsolidated affiliates3 |
|
271,188 |
|
|
236,252 |
|
|
714,447 |
|
|
629,142 |
|
Net cash
provided by operating activities |
|
175,127 |
|
|
223,010 |
|
|
338,333 |
|
|
327,290 |
|
CAFD4 |
|
42,728 |
|
|
36,690 |
|
|
132,465 |
|
|
132,144 |
|
Key Performance Indicators
|
As of and for the nine-month period ended September
30, |
|
2018 |
|
|
2017 |
|
Renewable energy |
|
|
|
MW in
operation5 |
1,446 |
|
|
1,442 |
|
GWh
produced6 |
2,555 |
|
|
2,577 |
|
Efficient natural gas |
|
|
|
MW in
operation |
300 |
|
|
300 |
|
GWh
produced |
1,714 |
|
|
1,787 |
|
Electric
Availability (%)7 |
99.5 |
% |
|
100.4 |
% |
Electric transmission lines |
|
|
|
Miles in
operation |
1,099 |
|
|
1,099 |
|
Availability
(%)8 |
100.0 |
% |
|
97.5 |
% |
Water |
|
|
|
Mft3 in
operation5 |
10.5 |
|
|
10.5 |
|
Availability
(%)8 |
101.8 |
% |
|
102.3 |
% |
Segment Results
(in thousands of U.S. dollars) |
For the nine-month period ended September
30, |
|
|
2018 |
|
|
2017 |
|
|
Revenue
by geography |
|
|
|
|
North
America |
$ |
294,625 |
|
$ |
270,037 |
|
South
America |
|
91,807 |
|
|
90,005 |
|
EMEA |
|
450,493 |
|
|
415,137 |
|
Total
revenue |
$ |
836,925 |
|
$ |
775,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of U.S. dollars) |
For the nine-month period ended September
30, |
|
Further
Adjusted EBITDA incl. unconsolidated affiliates by
geography |
|
2018 |
|
|
2017 |
|
North
America |
$ |
272,157 |
|
$ |
243,289 |
|
South
America |
|
76,234 |
|
|
84,174 |
|
EMEA |
|
366,056 |
|
|
301,679 |
|
Total
Further Adjusted EBITDA incl. unconsolidated
affiliates |
$ |
714,447 |
|
$ |
629,142 |
|
|
|
|
|
|
(in thousands of U.S. dollars) |
For the nine-month period ended September
30, |
|
|
2018 |
|
|
2017 |
Revenue
by business sector |
|
|
|
Renewable
energy |
$ |
652,135 |
|
$ |
594,476 |
Efficient natural
gas |
|
95,355 |
|
|
89,653 |
Electric
transmission lines |
|
71,920 |
|
|
71,064 |
Water |
|
17,515 |
|
|
19,986 |
Total
revenue |
$ |
836,925 |
|
$ |
775,179 |
|
|
|
|
Further
Adjusted EBITDA incl. unconsolidated affiliates by business
sector |
|
|
|
Renewable
energy |
$ |
565,915 |
|
$ |
462,607 |
Efficient natural
gas |
|
71,724 |
|
|
79,969 |
Electric
transmission lines |
|
60,447 |
|
|
68,649 |
Water |
|
16,361 |
|
|
17,917 |
Total
Further Adjusted EBITDA incl. unconsolidated
affiliates |
$ |
714,447 |
|
$ |
629,142 |
Our renewable assets generated solid operating
results during both the three and the nine-month periods ended
September 30, 2018:
- The U.S. solar portfolio delivered a strong performance during
the third quarter of 2018, with increased production from both
Solana and Mojave. The capacity factor for the third quarter of
2018 reached 38.9%, which represents a record performance for the
U.S. solar portfolio in a third quarter.
- Production in Spain for the nine month period ended September
30, 2018 decreased due to lower solar radiation, particularly
during the second quarter of 2018. However, impact on revenues was
limited, since most of the revenues are based on the availability
of assets and not their actual production.
- The operating performance in Kaxu (South Africa) continued to
be solid during the first nine months of 2018, reaching a capacity
factor of 31.3% (compared with 19.4% for the nine-month period
ended September 30, 2017).
- Finally, production in our wind assets in the nine months ended
September 30, 2018 was in line with the same period in 2017.
Regarding Atlantica’s availability-based assets,
they continue to deliver solid performance with high availability
levels in ACT, in transmission lines and in water assets.
Liquidity and Debt
As of September 30, 2018, cash at the Atlantica
Yield corporate level was $135.1 million.
As of September 30, 2018, net project debt was
$4,605.1 million ($4,954.3 million as of December 31, 2017) and net
corporate debt was $506.7 million ($494.6 million as of December
31, 2017). The net corporate debt / CAFD pre-corporate debt
service ratio9 was 2.3x as of September 30, 2018.
Net project debt is calculated as long-term
project debt plus short-term project debt minus cash and cash
equivalents at the consolidated project level. Net corporate debt
is calculated as long-term corporate debt plus short-term corporate
debt minus cash and cash equivalents at Atlantica Yield corporate
level.
CAFD pre-corporate debt service is calculated as
Cash Available For Distribution plus interest paid by Atlantica
Yield.
Delivering on Atlantica’s Accretive
Growth Strategy
Atlantica Yield announced several accretive
investments totaling approximately $245 million in equity value
with an estimated CAFD Yield10 of 13%.
Santiago Seage, Atlantica Yield CEO, said: “We
are committed to deliver sustainable accretive CAFD growth over the
next years. The acquisitions announced today represent an
attractive fit in our portfolio and value proposition. All of them
have long-term USD denominated contracts with creditworthy
off-takers and are located in countries where we are already
present”. He continued, “most importantly, today’s announcement
demonstrates that Atlantica Yield has access to several attractive
sources of growth. We have annouced two organic growth
opportunities in transmission assets, we have agreed to purchase
one of the assets included in our ROFO agreement and we have agreed
the acquisition of two assets from third parties”.
The transactions announced today by Atlantica
Yield are summarized as follows:
- Organic Growth: expansion of current
assets
ATN Expansion 1
Atlantica Yield reached an agreement to acquire
a 220-kV power substation and two transmission lines in Peru,
signed in October 2018. The substation will connect the Shahuindo
mine to Atlantica’s ATN line. The asset has a US dollar-denominated
15-year contract in place with the Shahuindo mine, a fully owned
subsidiary of Tahoe Resources (TSX and NYSE listed). The closing of
the transaction is subject to the asset reaching commercial
operation date (“COD”), which is expected in December 2018.
ATN Expansion 2
Atlantica Yield reached a preliminary agreement
to acquire certain transmission assets in Peru. These assets
are in operation and will receive revenue denominated in US
dollars. Atlantica’s investment is estimated at approximately
$20 million. The final purchase agreement has not been signed
yet. Additionally, the closing of the acquisition is subject to the
approval by the Peruvian Competition Authorities.
- Third Party Assets
“Chile TL3” transmission
line
Atlantica Yield reached a preliminary agreement
to acquire a transmission line in operation located in Chile. The
total investment to be made by Atlantica Yield is estimated at
approximately $10 million. The asset generates revenues under the
regulation in place in Chile, denominated in US dollars and indexed
to US and Chilean inflation rates. The final purchase agreement has
not been signed yet.
PTS (Pemex Transportation
System)
Agreement signed in October 2018 to acquire PTS,
a natural gas transportation platform located in the Gulf of
Mexico, currently under construction, with an installed compression
capacity of 450 million standard cubic feet per day, located in the
basin of origin of the natural gas delivered to Atlantica’s ACT
efficient natural gas plant. The service agreement signed with
Pemex is an 11-year “take-or-pay” agreement starting in 2020 with a
possibility of a future extension. Atlantica Yield will also
count on AAGES’ support until the asset reaches COD, which is
expected in late 2019 or early 2020.
As per the agreement, the asset will be acquired
in different stages. In October 2018, Atlantica acquired a 5%
ownership in the project; once the project enters in operation, it
will acquire an additional 65%; finally, the Company will acquire
the remaining 30% one year after COD, subject to final approvals.
The total equity investment is estimated to amount to approximately
$150 million.
- ROFO agreements
Tenes water desalination
plant
Preliminary agreement for the acquisition under
our original ROFO agreement of a 51% stake in Tenes, a water
desalination plant in Algeria. Atlantica Yield and the seller are
currently in negotiations under the ROFO agreement. The final share
purchase agreement has not been signed yet.
Tenes has a capacity to desalinate 7 million
cubic feet of water a day. The asset’s contract with
Sonatrach and ADE has a remaining term of 22 years. We
estimate the investment to amount to approximately $24
million. The acquisition is subject to the approval by the
Algerian Administration. At this stage, we cannot guarantee the
final approval nor the expected timing of such approval.
- Other
Finally, on September 30, 2018, we invested
$24.4 million in our ATN2 transmission line by prepaying a high
cost tranche of US dollar denominated project debt, as previously
announced.
Dividend
On October 31, 2018, the Board of Directors of
Atlantica Yield approved a dividend of $0.36 per share which
represents a 24.1% increase with respect to the third quarter of
2017. This dividend is expected to be paid on December 14,
2018 to shareholders of record as of November 30, 2018.
Details of the Results Presentation
Conference
Atlantica Yield’s CEO, Santiago Seage, and its
CFO, Francisco Martinez-Davis, will hold a conference call today,
November 5, at 4:30 pm ET.
In order to access the conference call
participants should dial: +1 646-828-8143 (US), +44 (0) 330 336
9105 (UK) or +1 647 794 1827 (Canada), followed by the confirmation
code 1015763. A live webcast of the conference call will be
available on Atlantica Yield's website. Please visit the website at
least 15 minutes earlier in order to register for the live webcast
and download any necessary audio software.
Additionally, Atlantica Yield’s management will
meet with investors in New York and Boston on November 6 and 7,
2018 respectively, as part of a non-deal roadshow.
Forward-Looking Statements
This press release contains forward-looking
statements. These forward-looking statements include, but are not
limited to, all statements other than statements of historical
facts contained in this press release, including, without
limitation, those regarding our future financial position and
results of operations, our strategy, plans, objectives, goals and
targets, future developments in the markets in which we operate or
are seeking to operate or anticipated regulatory changes in the
markets in which we operate or intend to operate. In some cases,
you can identify forward-looking statements by terminology such as
"aim," "anticipate," "believe," "continue," "could," "estimate,"
"expect," "forecast," "guidance," "intend," "is likely to," "may,"
"plan," "potential," "predict," "projected," "should" or "will" or
the negative of such terms or other similar expressions or
terminology.
By their nature, forward-looking statements
involve risks and uncertainties because they relate to events and
depend on circumstances that may or may not occur in the future.
Forward-looking statements speak only as of the date of this press
release and are not guarantees of future performance and are based
on numerous assumptions. Our actual results of operations,
financial condition and the development of events may differ
materially from (and be more negative than) those made in, or
suggested by, the forward-looking statements. We do not undertake
any obligation to update any forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the
occurrence of anticipated or unanticipated events or
circumstances.
Investors should read the section entitled "Item
3D. Key Information—Risk Factors" and the description of our
segments and business sectors in the section entitled "Item 4B.
Information on the Company—Business Overview", each in our annual
report for the fiscal year ended December 31, 2017 filed on Form
20-F, for a more complete discussion of the factors that could
affect us.
Important risks, uncertainties and other factors
that could cause these differences include, but are not limited to:
difficult conditions in the global economy and in the global market
and uncertainties in emerging markets where we have international
operations; changes in government regulations providing incentives
and subsidies for renewable energy, decreases in government
expenditure budgets, reductions in government subsidies or other
adverse changes in laws and regulations affecting our businesses
and growth plan, including reduction of our revenues in Spain,
which are mainly defined by regulation through parameters that
could be reviewed at the end of each regulatory period; our ability
to acquire solar projects due to the potential increase of the cost
of solar panels; political, social and macroeconomic risks relating
to the United Kingdom’s exit from the European Union; changes in
general economic, political, governmental and business conditions
globally and in the countries in which we do business; challenges
in achieving growth and making acquisitions due to our dividend
policy; inability to identify and/or consummate future
acquisitions, under the AAGES ROFO Agreement, the Abengoa ROFO
Agreement or otherwise, from third parties or from potential new
partners, including as a result of not being able to find
acquisition opportunities on favorable terms or at all. Our ability
to close acquisitions under our ROFO agreements with AAGES,
Algonquin, Abengoa and others due to, among other things, not being
offered assets that fit our portfolio, not reaching agreements on
prices or, in the case of the Abengoa ROFO Agreement, the risk of
Abengoa selling assets before they reach COD; our ability to renew
the Abengoa ROFO Agreement after June 2019. The Abengoa ROFO
Agreement has an initial term of five years and expires in June
2019. We will be able to unilaterally extend the term of the
Abengoa ROFO Agreement as many times as desired for an additional
three-year period, provided that we have executed at least one
acquisition in the previous two years after having been offered at
least four projects; our ability to identify and reach an agreement
with new sponsors or partners similar to the ROFO agreements with
AAGES, Algonquin or Abengoa; failure to close acquisitions recently
announced; failure to meet our estimated returns and cash available
for distribution estimations in acquisitions recently announced; in
relation to this, the acquisitions we have announced have an
estimated CAFD Yield of 13%. For the purposes of the annouced
transactions, CAFD yield is the annual weighted average Cash
Available For Distribution expected to be generated by the
investments over their first 10-year period from 2019, or from COD
for those assets which are not yet in operation, divided by the
expected acquisition price. CAFD Yield is an internal estimation
subject to a high degree of uncertainty and our ability to reach
this expected CAFD Yield depends on a variety of factors, including
closing of the acquisitions on their expected terms, acquired
assets performing as expected, acquired assets making cash
distributions to the holding level as expected, and assets reaching
COD by the expected date; failure of recently built assets to
perform as expected, including acquisitions recently announced of
assets which are currently under construction; legal challenges to
regulations, subsidies and incentives that support renewable energy
sources; extensive governmental regulation in a number of different
jurisdictions, including stringent environmental regulation;
increases in the cost of energy and gas, which could increase our
operating costs; counterparty credit risk and failure of
counterparties to our offtake agreements to fulfill their
obligations; inability to enter into new offtaker agreements or
replace expiring or terminated offtake agreements with similar
agreements; new technology or changes in industry standards;
inability to manage exposure to credit, interest rates, foreign
currency exchange rates, supply and commodity price risks; reliance
on third-party contractors and suppliers; risks associated with
acquisitions and investments; deviations from our investment
criteria for future acquisitions and investments; failure to
maintain safe work environments; effects of catastrophes, natural
disasters, adverse weather conditions, climate change, unexpected
geological or other physical conditions, criminal or terrorist acts
or cyber-attacks at one or more of our plants; isufficient
insurance coverage and increases in insurance cost; litigation and
other legal proceedings, including claims due to Abengoa’s
restructuring process; reputational risk, including potential
damage caused to us by Abengoa’s reputation; the loss of one or
more of our executive officers; failure of information technology
on which we rely to run our business; revocation or termination of
our concession agreements or power purchase agreements; lowering of
revenues in Spain that are mainly defined by regulation; risk that
the 16.5% Share Sale will not be completed; inability to adjust
regulated tariffs or fixed-rate arrangements as a result of
fluctuations in prices of raw materials, exchange rates, labor and
subcontractor costs; exposure to electricity market conditions
which can impact revenue from our assets; changes to national and
international law and policies that support renewable energy
resources; lack of electric transmission capacity and potential
upgrade costs to the electric transmission grid; disruptions in our
operations as a result of our not owning the land on which our
assets are located; risks associated with maintenance, expansion
and refurbishment of electric generation facilities; failure of our
assets to perform as expected, including Solana and Kaxu; failure
to receive dividends from all projects and investments, including
Solana and Kaxu; failure or delay to reach the “flip-date” by
Liberty Interactive Corporation in its tax equity investment in
Solana; variations in meteorological conditions; disruption of the
fuel supplies necessary to generate power at our efficient natural
gas power generation facilities; deterioration in Abengoa’s
financial condition or negative impact potentially caused by
Abengoa’s financial plan announced on September 30, 2018, including
potential negative impacts in our assets; Abengoa’s ability to meet
its obligations under our agreements with Abengoa, to comply with
past representations, commitments and potential liabilities linked
to the time when Abengoa owned the assets, potential clawback of
transactions with Abengoa, and other risks related to Abengoa;
failure to meet certain covenants or payment obligations under our
financing arrangements; failure to obtain pending waivers in
relation to the minimum ownership by Abengoa and the cross-default
provisions contained in some of our project financing agreements;
failure of Abengoa to maintain existing guarantees and letters of
credit under the Financial Support Agreement or failure by us to
maintain guarantees; failure of Abengoa to maintain its obligations
and production guarantees, pursuant to EPC contracts; changes in
our tax position and greater than expected tax liability, including
in Spain; conflicts of interest which may be resolved in a manner
that is not in our best interests or the best interests of our
minority shareholders, potentially caused by our ownership
structure and certain service agreements in place with one of our
current largest shareholders; the divergence of interest between us
and Abengoa, due to Abengoa’s sale of our shares; potential
negative tax implications from being deemed to undergo an
“ownership change” under section 382 of the Internal Revenue Code,
including limitations on our ability to use U.S. NOLs to offset
future income tax liability; negative implications from a potential
change of control; negative implications of U.S. federal income tax
reform and potential changes in tax regulation in other
jurisdictions; technical failure, design errors or faulty operation
of our assets not covered by guarantees or insurance; failure to
collect insurance proceeds in the expected amounts; and various
other factors, including those factors discussed under “Item
3.D—Risk Factors” and “Item 5.A—Operating Results” in our Annual
Report for the fiscal year ended December 31, 2017 filed on Form
20-F.
Furthermore, any dividends are subject to
available capital, market conditions, and compliance with
associated laws and regulations. These factors should be considered
in connection with information regarding risks and uncertainties
that may affect our future results included in our filings with the
U.S. Securities and Exchange Commission at www.sec.gov. We
undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or developments or otherwise. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described
herein as anticipated, believed, estimated, expected or
targeted.
The CAFD and other guidance included in this
press release are estimates as of March 7, 2018. These estimates
are based on assumptions believed to be reasonable as of that date,
when Atlantica Yield published its FY 2017 Financial Results.
Atlantica Yield plc. disclaims any current intention to update such
guidance, except as required by law.
Non-GAAP
Financial Measures
We present non-GAAP financial measures because
we believe that they and other similar measures are widely used by
certain investors, securities analysts and other interested parties
as supplemental measures of performance and liquidity. The non-GAAP
financial measures may not be comparable to other similarly titled
measures of other companies and have limitations as analytical
tools and should not be considered in isolation or as a substitute
for analysis of our operating results as reported under IFRS as
issued by the IASB. Non-GAAP financial measures and ratios are not
measurements of our performance or liquidity under IFRS as issued
by the IASB and should not be considered as alternatives to
operating profit or profit for the year or any other performance
measures derived in accordance with IFRS as issued by the IASB or
any other generally accepted accounting principles or as
alternatives to cash flow from operating, investing or financing
activities.
We define Further Adjusted EBITDA including
unconsolidated affiliates as profit/(loss) for the period
attributable to the Company, after adding back loss/(profit)
attributable to non-controlling interest from continued operations,
income tax, share of profit/(loss) of associates carried under the
equity method, finance expense net, depreciation, amortization and
impairment charges, and dividends received from the preferred
equity investment in ACBH. Further Adjusted EBITDA for the first
quarter of 2017 includes compensation received from Abengoa in lieu
of ACBH dividend.
Our management believes Further Adjusted EBITDA
including unconsolidated affiliates is useful to investors and
other users of our financial statements in evaluating our operating
performance because it provides them with an additional tool to
compare business performance across companies and across periods.
This measure is widely used by investors to measure a company’s
operating performance without regard to items such as interest
expense, taxes, depreciation and amortization, which can vary
substantially from company to company depending upon accounting
methods and book value of assets, capital structure and the method
by which assets were acquired.
Our management uses Further Adjusted EBITDA
including unconsolidated affiliates as a measure of operating
performance to assist in comparing performance from period to
period on a consistent basis and to readily view operating trends,
as a measure for planning and forecasting overall expectations and
for evaluating actual results against such expectations, and in
communications with our Board of Directors, shareholders,
creditors, analysts and investors concerning our financial
performance.
We define Cash Available For Distribution as
cash distributions received by the Company from its subsidiaries
minus all cash expenses of the Company, including debt service and
general and administrative expenses. Management believes cash
available for distribution is a relevant supplemental measure of
the Company’s ability to earn and distribute cash returns to
investors.
We believe cash available for distribution is
useful to investors in evaluating our operating performance because
securities analysts and other interested parties use such
calculations as a measure of our ability to make quarterly
distributions. In addition, cash available for distribution is used
by our management team for determining future acquisitions and
managing our growth.
Consolidated Statements of
Operations(Amounts in thousands of U.S. dollars)
|
For the three-month period ended September
30, |
|
For the nine-month period ended September 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Revenue |
$ |
323,812 |
|
|
$ |
291,964 |
|
|
$ |
836,925 |
|
|
$ |
775,179 |
|
Other
operating income |
|
27,156 |
|
|
|
16,186 |
|
|
|
112,214 |
|
|
|
56,499 |
|
Raw
materials and consumables used |
|
(378 |
) |
|
|
(4,069 |
) |
|
|
(7,652 |
) |
|
|
(11,209 |
) |
Employee
benefit expenses |
|
(5,478 |
) |
|
|
(4,993 |
) |
|
|
(15,793 |
) |
|
|
(13,252 |
) |
Depreciation, amortization, and impairment charges |
|
(83,502 |
) |
|
|
(80,720 |
) |
|
|
(243,799 |
) |
|
|
(236,431 |
) |
Other
operating expenses |
|
(76,107 |
) |
|
|
(64,888 |
) |
|
|
(217,333 |
) |
|
|
(193,673 |
) |
Operating profit/(loss) |
$ |
185,503 |
|
|
$ |
153,480 |
|
|
$ |
464,562 |
|
|
$ |
377,113 |
|
Financial
income |
|
(268 |
) |
|
|
643 |
|
|
|
36,603 |
|
|
|
1,131 |
|
Financial
expense |
|
(100,234 |
) |
|
|
(105,874 |
) |
|
|
(306,340 |
) |
|
|
(308,570 |
) |
Net
exchange differences |
|
(116 |
) |
|
|
(1,331 |
) |
|
|
1,032 |
|
|
|
(4,294 |
) |
Other
financial income/(expense), net |
|
(1,452 |
) |
|
|
(5,185 |
) |
|
|
(11,139 |
) |
|
|
1,302 |
|
Financial expense, net |
$ |
(102,070 |
) |
|
$ |
(111,747 |
) |
|
$ |
(279,844 |
) |
|
$ |
(310,431 |
) |
Share of
profit/(loss) of associates carried under the equity method |
|
1,781 |
|
|
|
1,624 |
|
|
|
4,690 |
|
|
|
3,700 |
|
Profit/(loss) before income tax |
$ |
85,214 |
|
|
$ |
43,357 |
|
|
$ |
189,408 |
|
|
$ |
70,382 |
|
Income
tax |
|
(28,049 |
) |
|
|
(12,482 |
) |
|
|
(59,068 |
) |
|
|
(25,330 |
) |
Profit/(loss) for the period |
$ |
57,165 |
|
|
$ |
30,875 |
|
|
$ |
130,340 |
|
|
$ |
45,052 |
|
Loss/(profit)
attributable to non-controlling interests |
|
(4,003 |
) |
|
|
(906 |
) |
|
|
(9,828 |
) |
|
|
(2,470 |
) |
Profit/(loss) for the period attributable to the
Company |
$ |
53,162 |
|
|
$ |
29,969 |
|
|
$ |
120,512 |
|
|
$ |
42,582 |
|
Weighted average
number of ordinary shares outstanding (thousands) |
|
100,217 |
|
|
|
100,217 |
|
|
|
100,217 |
|
|
|
100,217 |
|
Basic earnings
per share attributable to Atlantica Yield plc (U.S. dollar per
share) |
$ |
0.53 |
|
|
$ |
0.30 |
|
|
$ |
1.20 |
|
|
$ |
0.42 |
|
Consolidated Statement of Financial
Position(Amounts in thousands of U.S. dollars)
Assets |
As of September
30, 2018 |
|
As of December 31, 2017 |
Non-current assets |
|
|
|
|
Contracted
concessional assets |
$ |
8,606,943 |
|
$ |
9,084,270 |
|
Investments
carried under the equity method |
|
54,776 |
|
|
55,784 |
|
Financial
investments |
|
52,947 |
|
|
45,242 |
|
Deferred tax
assets |
|
160,106 |
|
|
165,136 |
Total non-current assets |
$ |
8,874,772 |
|
|
9,350,432 |
Current assets |
|
|
|
|
Inventories |
$ |
18,785 |
|
$ |
17,933 |
|
Clients and
other receivables |
|
297,258 |
|
|
244,449 |
|
Financial
investments |
|
237,080 |
|
|
210,138 |
|
Cash and cash
equivalents |
|
744,636 |
|
|
669,387 |
Total current assets |
$ |
1,297,759 |
|
$ |
1,141,907 |
Total assets |
$ |
10,172,531 |
|
$ |
10,492,339 |
Equity and liabilities |
|
|
|
|
Share
capital |
$ |
10,022 |
|
|
$ |
10,022 |
|
|
Parent company
reserves |
|
2,066,018 |
|
|
|
2,163,229 |
|
|
Other
reserves |
|
105,959 |
|
|
|
80,968 |
|
|
Accumulated
currency translation differences |
|
(59,931 |
) |
|
|
(18,147 |
) |
|
Retained
Earnings |
|
(363,605 |
) |
|
|
(477,214 |
) |
|
Non-controlling interest |
|
134,768 |
|
|
|
136,595 |
|
Total equity |
$ |
1,893,231 |
|
|
$ |
1,895,453 |
|
Non-current liabilities |
|
|
|
|
Long-term
corporate debt |
$ |
622,433 |
|
|
$ |
574,176 |
|
|
Long-term
project debt |
|
4,908,678 |
|
|
|
5,228,917 |
|
|
Grants and
other liabilities |
|
1,653,451 |
|
|
|
1,636,060 |
|
|
Related
parties |
|
78,734 |
|
|
|
141,031 |
|
|
Derivative
liabilities |
|
266,884 |
|
|
|
329,731 |
|
|
Deferred tax
liabilities |
|
251,479 |
|
|
|
186,583 |
|
Total non-current liabilities |
$ |
7,781,659 |
|
|
$ |
8,096,498 |
|
Current liabilities |
|
|
|
|
Short-term
corporate debt |
|
19,352 |
|
|
|
68,907 |
|
|
Short-term
project debt |
|
305,997 |
|
|
|
246,291 |
|
|
Trade payables
and other current liabilities |
|
133,632 |
|
|
|
155,144 |
|
|
Income and
other tax payables |
|
38,660 |
|
|
|
30,046 |
|
Total current liabilities |
$ |
497,641 |
|
|
$ |
500,388 |
|
Total equity and liabilities |
$ |
10,172,531 |
|
|
$ |
10,492,339 |
|
Consolidated Cash Flow
Statements(Amounts in thousands of U.S. dollars)
|
For the three-month period ended September
30, |
|
For the nine-month period ended September 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Profit/(loss) for the period |
|
57,165 |
|
|
|
30,875 |
|
|
|
130,340 |
|
|
|
45,052 |
|
Financial
expense and non-monetary adjustments |
|
196,967 |
|
|
|
188,647 |
|
|
|
494,829 |
|
|
|
528,408 |
|
Profit
for the period adjusted by financial expense and non-monetary
adjustments |
$ |
254,132 |
|
|
$ |
219,522 |
|
|
$ |
625,169 |
|
|
$ |
573,460 |
|
Variations
in working capital |
|
(49,793 |
) |
|
|
32,464 |
|
|
|
(97,020 |
) |
|
|
(47,503 |
) |
Net
interest and income tax paid |
|
(29,212 |
) |
|
|
(28,976 |
) |
|
|
(189,816 |
) |
|
|
(198,667 |
) |
Net cash
provided by/(used in) operating activities |
$ |
175,127 |
|
|
$ |
223,010 |
|
|
$ |
338,333 |
|
|
$ |
327,290 |
|
Investment
in contracted concessional assets11 |
|
(1,606 |
) |
|
|
(4,812 |
) |
|
|
61,084 |
|
|
|
(7,506 |
) |
Other
non-current assets/liabilities |
|
(11,144 |
) |
|
|
(4,041 |
) |
|
|
(22,506 |
) |
|
|
(6,609 |
) |
Acquisitions of subsidiaries |
|
- |
|
|
|
- |
|
|
|
(9,327 |
) |
|
|
- |
|
Dividends received from entities under the equity method |
|
4,432 |
|
|
|
2,454 |
|
|
|
4,432 |
|
|
|
2,454 |
|
Other
investments |
|
- |
|
|
|
2,686 |
|
|
|
2,521 |
|
|
|
27,361 |
|
Net cash
provided by/(used in) investing activities |
$ |
(8,318 |
) |
|
$ |
(3,713 |
) |
|
$ |
36,204 |
|
|
$ |
15,700 |
|
|
|
|
|
|
|
|
|
Net cash
provided by/(used in) financing activities |
$ |
(74,495 |
) |
|
$ |
(48,805 |
) |
|
$ |
(282,093 |
) |
|
$ |
(172,507 |
) |
|
|
|
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents |
$ |
92,314 |
|
|
$ |
170,492 |
|
|
$ |
92,444 |
|
|
$ |
170,483 |
|
Cash and cash
equivalents at beginning of the period |
|
657,212 |
|
|
|
614,312 |
|
|
|
669,387 |
|
|
|
594,811 |
|
Translation
differences in cash or cash equivalent |
|
(4,890 |
) |
|
|
9,290 |
|
|
|
(17,195 |
) |
|
|
28,800 |
|
Cash and
cash equivalents at end of the period |
$ |
744,636 |
|
|
$ |
794,094 |
|
|
$ |
744,636 |
|
|
$ |
794,094 |
|
Reconciliation of Further Adjusted EBITDA
including unconsolidated affiliates to Profit/(loss) for the period
attributable to the company
(in thousands of
U.S. dollars) |
For the three-month period ended September
30, |
|
For the nine-month period ended September 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Profit/(loss) for the period attributable to the
Company |
$ |
53,162 |
|
|
$ |
29,969 |
|
|
$ |
120,512 |
|
|
$ |
42,582 |
|
Profit
attributable to non-controlling interest |
|
4,003 |
|
|
|
906 |
|
|
|
9,828 |
|
|
|
2,470 |
|
Income tax |
|
28,049 |
|
|
|
12,482 |
|
|
|
59,068 |
|
|
|
25,330 |
|
Share of
loss/(profit) of associates carried under the equity method |
|
(1,781 |
) |
|
|
(1,624 |
) |
|
|
(4,690 |
) |
|
|
(3,700 |
) |
Financial
expense, net |
|
102,070 |
|
|
|
111,747 |
|
|
|
279,844 |
|
|
|
310,431 |
|
Operating profit |
$ |
185,503 |
|
|
$ |
153,480 |
|
|
$ |
464,562 |
|
|
$ |
377,113 |
|
Depreciation,
amortization, and impairment charges |
|
83,502 |
|
|
|
80,720 |
|
|
|
243,799 |
|
|
|
236,431 |
|
Dividend from
exchangeable preferred equity investment in ACBH |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
10,383 |
|
Further
Adjusted EBITDA |
$ |
269,005 |
|
|
$ |
234,200 |
|
|
$ |
708,361 |
|
|
$ |
623,927 |
|
Atlantica
Yield’s pro-rata share of EBITDA from Unconsolidated
Affiliates |
|
2,183 |
|
|
|
2,052 |
|
|
|
6,086 |
|
|
|
5,215 |
|
Further
Adjusted EBITDA including unconsolidated affiliates |
$ |
271,188 |
|
|
$ |
236,252 |
|
|
$ |
714,447 |
|
|
$ |
629,142 |
|
Reconciliation of Further Adjusted EBITDA
including unconsolidated affiliates to net
cash provided by operating activities
(in thousands of
U.S. dollars) |
For the three-month period ended September
30, |
|
For the nine-month period ended September 30, |
|
|
2018 |
|
|
2017 |
|
|
|
2018 |
|
|
2017 |
Net cash
provided by operating activities |
$ |
175,127 |
|
$ |
223,010 |
|
|
$ |
338,333 |
|
$ |
327,290 |
Net interest and
income tax paid |
|
29,212 |
|
|
28,976 |
|
|
|
189,816 |
|
|
198,667 |
Variations in
working capital |
|
49,793 |
|
|
(32,464 |
) |
|
|
97,020 |
|
|
47,503 |
Other non-cash
adjustments and other |
|
14,873 |
|
|
14,678 |
|
|
|
83,192 |
|
|
50,467 |
Further
Adjusted EBITDA |
$ |
269,005 |
|
$ |
234,200 |
|
|
$ |
708,361 |
|
$ |
623,927 |
Atlantica
Yield’s pro-rata share of EBITDA from unconsolidated
affiliates |
|
2,183 |
|
|
2,052 |
|
|
|
6,086 |
|
|
5,215 |
Further
Adjusted EBITDA including unconsolidated affiliates |
$ |
271,188 |
|
$ |
236,252 |
|
|
$ |
714,447 |
|
$ |
629,142 |
Reconciliation of Cash Available For
Distribution to Profit/(loss) for the period attributable to the
Company
(in thousands of
U.S. dollars) |
For the three-month period ended September
30, |
|
For the nine-month period ended September 30, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Profit/(loss) for the period attributable to the
Company |
$ |
53,162 |
|
|
$ |
29,969 |
|
|
$ |
120,512 |
|
|
$ |
42,582 |
|
Profit
attributable to non-controlling interest |
|
4,003 |
|
|
|
906 |
|
|
|
9,828 |
|
|
|
2,470 |
|
Income tax |
|
28,049 |
|
|
|
12,482 |
|
|
|
59,068 |
|
|
|
25,330 |
|
Share of
loss/(profit) of associates carried under the equity method |
|
(1,781 |
) |
|
|
(1,624 |
) |
|
|
(4,690 |
) |
|
|
(3,700 |
) |
Financial
expense, net |
|
102,070 |
|
|
|
111,747 |
|
|
|
279,844 |
|
|
|
310,431 |
|
Operating profit |
$ |
185,503 |
|
|
$ |
153,480 |
|
|
$ |
464,562 |
|
|
$ |
377,113 |
|
Depreciation,
amortization, and impairment charges |
|
83,502 |
|
|
|
80,720 |
|
|
|
243,799 |
|
|
|
236,431 |
|
Dividends from
exchangeable preferred equity investment in ACBH |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
10,383 |
|
Atlantica
Yield’s pro-rata share of EBITDA from unconsolidated
affiliates |
|
2,183 |
|
|
|
2,052 |
|
|
|
6,086 |
|
|
|
5,215 |
|
Further
Adjusted EBITDA including unconsolidated affiliates |
$ |
271,188 |
|
|
$ |
236,252 |
|
|
$ |
714,447 |
|
|
$ |
629,142 |
|
Atlantica
Yield’s pro-rata share of EBITDA from unconsolidated
affiliates |
|
(2,183 |
) |
|
|
(2,052 |
) |
|
|
(6,086 |
) |
|
|
(5,215 |
) |
Dividends from
equity method investments |
|
4,432 |
|
|
|
2,454 |
|
|
|
4,432 |
|
|
|
2,454 |
|
Non-monetary
items |
|
(14,755 |
) |
|
|
(13,005 |
) |
|
|
(84,223 |
) |
|
|
(35,788 |
) |
Interest and
income tax paid |
|
(29,212 |
) |
|
|
(28,976 |
) |
|
|
(189,816 |
) |
|
|
(198,667 |
) |
Principal
amortization of indebtedness |
|
(13,025 |
) |
|
|
(20,330 |
) |
|
|
(101,700 |
) |
|
|
(96,380 |
) |
Deposits into/
withdrawals from restricted accounts |
|
(24,388 |
) |
|
|
(26,581 |
) |
|
|
(36,986 |
) |
|
|
(27,181 |
) |
Change in
non-restricted cash at project level |
|
(92,027 |
) |
|
|
(143,982 |
) |
|
|
(65,610 |
) |
|
|
(104,389 |
) |
Dividends paid
to non-controlling interests |
|
(2,958 |
) |
|
|
(2,837 |
) |
|
|
(9,745 |
) |
|
|
(4,638 |
) |
Changes in other
assets and liabilities |
|
(54,344 |
) |
|
|
35,747 |
|
|
|
(92,248 |
) |
|
|
(27,194 |
) |
Cash
Available For Distribution12 |
$ |
42,728 |
|
|
$ |
36,690 |
|
|
$ |
132,465 |
|
|
$ |
132,144 |
|
About Atlantica Yield
Atlantica Yield plc is a total return company
that owns a diversified portfolio of contracted renewable energy,
efficient natural gas, electric transmission and water assets in
North & South America, and certain markets in EMEA
(www.atlanticayield.com).
Chief Financial Officer Francisco Martinez-Davis
E ir@atlanticayield.com |
Investor Relations & Communication Leire Perez
E ir@atlanticayield.com
T +44 20 3499 0465 |
1 Further Adjusted EBITDA including
unconsolidated affiliates includes our share in EBITDA of
unconsolidated affiliates. Additionally, for the nine-month period
ended September 30, 2017, it includes the dividend from our
preferred equity investment in Brazil or its compensation (see
reconciliation on page 17).
2 For the purposes of the announced
transactions, CAFD yield is the annual weighted average Cash
Available For Distribution expected to be generated by the
investments over their first 10-year period from 2019, or from COD
for those assets which are not yet in operation, divided by the
expected acquisition price.
3 Further Adjusted EBITDA includes our share in
EBITDA of unconsolidated affiliates and the dividend from our
preferred equity investment in Brazil or its compensation in the
nine-month period ended September 30, 2017 (see reconciliation on
page 17).
4 CAFD for the nine-month period ended September
30, 2017 included $10.4 million of ACBH dividend compensation (see
reconciliation on page 18).
5 Represents total installed capacity in assets
owned at the end of the period, regardless of our percentage of
ownership in each of the assets.
6 Includes curtailment production in wind assets for which we
receive compensation.
7 Electric availability refers to operational MW over contracted
MW with PEMEX.
8 Availability refers to actual availability
divided by contracted availability.
9 Net corporate leverage calculated as corporate
net debt divided by midpoint guidance for Cash Available For
Distribution for the year 2018 before corporate debt service.
10 For the purposes of the announced
transactions, CAFD yield is the annual weighted average Cash
Available For Distribution expected to be generated by the
investments over their first 10-year period from 2019, or from COD
for those assets which are not yet in operation, divided by the
expected acquisition price.
11 Includes proceeds of $60.8 million received at Solana from
Abengoa in relation to the consent with the DOE.
12 CAFD for the nine-month period ended September 30, 2017
includes $10.4 million of ACBH dividend compensation.
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