Release Date: August 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue grew 42% year-over-year to $175 million in the first half of 2024.
- Adjusted EBITDA increased by 33% to $126 million for the same period.
- Enlight raised its full-year 2024 revenue guidance to $345 million to $360 million.
- The company completed construction on 0.5 GW and 1.4 GWh of capacity, including the Atrisco Solar and Energy project.
- Enlight's European projects, like Gecama, are benefiting from robust market conditions with increased profitability.
Negative Points
- Net income dropped to $34 million, a decrease from the previous year.
- Cash flow from operations decreased by 4% to $91 million in the first half of 2024.
- The CO Bar complex in Arizona faced delays due to interconnection queue reform.
- Second quarter net income decreased by 58% year-over-year to $9 million.
- The company experienced a significant indexation impact on its Shekel-denominated debt, resulting in a non-cash financial expense.
Q & A Highlights
Q: How much of your capacity planned for completion through 2027 is uncontracted, and what is your strategy for contracting the remainder? Are PPA prices expected to rise?
A: Most projects are contracted, but the advanced development portfolio is uncontracted. Given US demand, PPAs are expected to remain stable or increase. We are renegotiating some PPAs for higher rates. (Gilad Yavetz, CEO; Yonah Weisz, Director of Investor Relations; Adam Pishl, COO)
Q: Can you update on the procurement process for projects like Quail Ranch, Roadrunner, and Country Acres, and comment on module prices in the US?
A: We have secured panel supply from non-AD/CVD impacted countries like India. Base panel prices have dropped significantly, and US prices are 25-30% lower than 2023 assumptions. This results in better project returns. (Gilad Yavetz, CEO)
Q: Is there potential to secure the domestic content adder for battery storage projects with CODs in 2025 or 2026?
A: Atrisco uses Tesla batteries, which may qualify for the tax equity adder, but it's not yet modeled. Other projects using Tesla have potential for US content, with more opportunities expected by 2026-2027. (Gilad Yavetz, CEO)
Q: Can you confirm if unlevered returns assume the latest module cost assumptions and if the domestic content adder is included?
A: The domestic content adder is not included, representing an upside. The brownfield side for Atrisco includes it. (Gilad Yavetz, CEO)
Q: What is the status of the Interconnection Queue reform for CO Bar in Arizona, and when is clarity expected?
A: We are working closely with the utility and expect clarity in the coming months. This is the gating item, and the utility has been helpful. (Adam Pishl, COO)
Q: What is the potential capacity in the advanced development book not included in the mature projects?
A: The advanced development portfolio could include about 4 GW of generation and up to 14 GW of storage. (Yonah Weisz, Director of Investor Relations)
Q: Can you elaborate on the timeline for projects in Virginia and expected returns?
A: We have several projects in PGM under development. Construction is expected to be strong in 2025, following the completion of current projects. (Gilad Yavetz, CEO)
Q: Why was 300 MW moved from 2026 to 2027 in the mature portfolio?
A: Projects like Gemstone and Kogan were moved to 2027 to benefit from domestic panel production and IRA adder for domestic content. The utility agrees with this move. (Yonah Weisz, Director of Investor Relations)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
