TEL AVIV, ISRAEL, May 8, 2024 – Enlight Renewable Energy Ltd. (NASDAQ: ENLT, TASE: ENLT) today reported financial results for the first quarter March 31, 2024.

Financial Highlights

• Revenue of $90m, up 27% year over year
• Adjusted EBITDA1 of $68m, up 28% year over year
• Net income of $24m, down 26% year over year
• Cash flow from operations of $35m, down 36% year over year
• Reaffirming full year 2024 guidance

First Quarter Business Developments

• High generation volumes at our wind projects more than offset the impact from low merchant prices in Spain.
• Our U.S. projects are on schedule. Atrisco Solar and Storage are on track for COD in 2H24. Country Acres, Roadrunner and Quail Ranch, totaling 810 MW and 2.0 GWh are fast approaching Ready to Build.
• Achieved financial close for European projects Pupin, Tapolca, and AC/DC, totaling 180 MW. Transactions included $137m of long-term debt and $29m of capital recycled back to Enlight.
• Arad Valley 3, a part of the Israel Solar + Storage cluster, reached COD. Roll out of the remaining 5 sites of the cluster is on track for the rest of this year.
• Project returns continue to rise, boosted by high PPA pricing and record low equipment costs.
• No material changes to the Mature Project portfolio since last quarter’s earnings report

“Our results this quarter reflect a very robust start to 2024. Revenue grew by 27% and Adjusted EBITDA grew by 28%, driven by the strong performance of our operational assets. On the back of these strong results, we are pleased to reaffirm our full year Financial Outlook for 2024,” said Gilad Yavetz, CEO of Enlight Renewable Energy.

“Operational performance this quarter was superb. Significantly higher energy generation at our wind projects boosted financial results, and construction plans for 2024 are on schedule. Atrisco will be entirely online by the end of 2024, with the construction of three new flagship projects in the United States set to begin during the second half of the year.”

“Industry trends remain supportive for us, especially in the U.S. Estimates for long term load growth in the U.S. are rising significantly, due to increasing demand for power from onshoring of industry, new data centers, and further penetration of EVs. This is pushing PPA pricing higher, even as equipment costs remain low. As a result, returns continue to rise on the portfolio of projects we are set to construct during the coming years.”

Overview of Financial and Operating Results: Revenue

In the first quarter of 2024, the Company’s revenues increased to $90m, up from $71m last year, a growth rate of 27% year over year. The Company benefited from the revenue contribution of new operational projects, as well as higher production and inflation indexation embedded in our PPAs for already operational projects. This was offset by a decline in revenues driven by lower electricity prices in Spain relative to the prices observed in the same quarter in 2023.

Since the first quarter of 2023, 517 MW and 340 MWh of projects began selling electricity, including Apex Solar in the U.S.; ACDC in Hungary; Genesis Wind in Israel; and seven of the Solar & Storage cluster units in Israel. The Company also benefited from the ramp up of project Björnberget in Sweden which was partially operational in the first quarter of last year. These projects collectively generated $21m of revenue during the first quarter of 2024, with the biggest contributors being Björnberget $7m and Genesis Wind $9m. There was no material net FX impact on the Company’s revenues this quarter.

Growth in revenues was offset by the decline in electricity prices for projects where electricity is sold under a merchant model. Despite a significant increase in production, Gecama revenues fell 6% year over year to $20m, driven by lower power prices in Spain. During the first quarter last year we sold electricity at Gecama at EUR 85 per MWh versus EUR 65 per MWh for the same period this year. See below for a sensitivity analysis on how Spanish electricity prices have a limited impact on our Financial Outlook.

Finally, the accounting reclassification of the remainder of our financial asset projects in Israel to fixed asset projects boosted revenues by $3m, though at the same time removed this sum from the financial income line item.

Financial performance was well-balanced between Western Europe, Central-Eastern Europe (“CEE”) and Israel, with 64% of revenues in the first quarter of 2024 denominated in Euros, 3% in US Dollars, 1% in other European currencies, and 32% denominated in Israeli shekel.  

Net Income

In the first quarter, the Company’s net income decreased from $33m last year to $24m this year, a decline of 27% year over year. The drop can be ascribed to the unusually high financial income incurred during the first quarter last year. In 1Q23, we recorded a one-off $12m benefit caused by the depreciation of the Israeli Shekel on the large amount of cash the Company had received following completion of our Nasdaq IPO in February 2023. In addition, we recorded a $2m non-cash gain in 1Q24 stemming from the mark to market of interest rate hedges and a positive revaluation of foreign exchange-denominated liabilities.

Adjusted EBITDA

In the first quarter of 2024, the Company’s Adjusted EBITDA grew by 28% to $68m compared to $54m for the same period in 2023. The increase was driven by the same factors which affected our revenue increase, while the company overhead increased by $1m year-on-year.  

Portfolio Overview

Key changes to the Company’s project portfolio during the first quarter of 2024:

• Operational portfolio grew by 32 MW and 63 MWh
• No material changes to the Mature Project portfolio

To read the entire quarterly earning release, visit enlightenergy.co.il/data/financial-reports/