Atlantica Sustainable Infrastructure plc

Hello and welcome to Atlantica's second quarter 2023 financial results conference call. Atlantica is a sustainable infrastructure company. Just a reminder that this call is being webcast live on the internet and a replay of this call will be available on Atlantica's corporate website. Atlantica will be making forward-looking statements during this call based on current expectations and assumptions which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect, or because of other factors discussed in today's earnings presentation, or because of other factors discussed including the risk factors section of the accompanying presentation and in our latest report and filings from the Securities and Exchange Commission, all of which can be found on our website. Atlantica does not undertake any duty to update any forward-looking statements. Joining us on today's conference call are Atlantica CEO Santiago Sic, and CFO Francisco Martinez-Davis. As usual, at the end of the conference call, we will open the lines for the Q&A session. I will now pass you over to Mr. Siech. Please go ahead, sir.

Thank you very much. Good morning, and thank you for joining us for our second quarter 2023 conference call. This second quarter, and in general the first half of the year, we believe shows the strength of our long-term contracted and highly diversified asset portfolio. While many of our peers, many companies in our sector have been talking about soft wind resources in the U.S., the fact that we have a more diversified portfolio both by technology and by geography means that in the first half of the year revenue and adjusted bda have increased by a 1.4 and a 1.9 percent respectively on a comparable basis at the same time cash available for distribution has increased by a 2.6 percent on a comparable basis, reaching $124.6 million. We believe that this is another quarter of solid results, thanks to this well-contracted and highly diversified portfolio. I will now turn the call over to Francisco, who will take us through our financial results.

Thank you, Santiago, and good morning to everyone. Please turn to slide number four, where I will present our key financial results for the first half of 2023. Revenue reached $554.6 million, which represents a 1.4 percent growth on a comparable basis, excluding the effect of foreign exchange. Adjusted EBITDA was $403.8 million, representing an increase of 1.9 percent on a comparable basis. Regarding cash available for distribution, we generated $124.6 million in the first half of 2023, an increase of 2.6% on a comparable basis and 6.2 year-over-year growth. On the following slide, number five, you can see our performance by geography and business sector. In North America, revenue increased by 1% to $202.2 million in the first half of 2023 compared to the same period of last year, mostly due to higher production in our solar assets in the U.S. in spite of lower solar radiation in the period. Adjusted EBITDA, on the other hand, decreased by 4%. mainly due to lower EBITDA at our wind portfolio in the U.S. as production was lower due to lower wind resources across the U.S. in the second quarter. In South America, revenue increased by 17% compared with the first half of 2022, up to $91.5 million, and EBITDA increased 27% to $74.4 million. The increase was mainly due to assets which recently entered in operation. Inflation indexation mechanism in our contracts, and again, corresponding to the sale of part of our equity interest in our development company in Colombia to a partner in the first quarter. In the Maya region, on a constant currency basis, revenue in adjusted EBITDA decreased by 3% and 1% respectively. This was mostly due to lower revenue of solar assets in Spain, despite higher production during the period, mainly due to lower electricity prices compared with those in the same period last year. As you're aware, these assets are regulated and are entitled to receive a predefined rate of return. The fluctuation in market prices do not affect the value of the asset. This decrease was partially offset by high-revenue Akachu, thanks to higher production and revenue indexation to inflation. Looking below at the result by business sector, we can see similar effects. Next now, please turn to slide number six, where I will review our operational performance. Electricity produced by our renewable assets reached 2,803 gigawatt hours in the first half of 2023, an increase of 6% versus the same period of 2022, mainly due to the increase in production in our solar assets in Spain, where solar radiation was higher in the period, and due to the contribution from the recently consolidated assets and those that have entered operation recently. Production also increased in our solar assets in the United States. Even though solar radiation was lower than the same period of the previous year, our assets have shown better performance. Looking at our availability-based contracts, in our efficient natural gas and heat segment, availability decreased, mostly due to scheduled maintenance stop during the period, which does not impact revenue. Our water assets and transmission lines continue to achieve very high availability levels in the first half of 2023. As you can see, even though production in our wind assets in the U.S. was lower as a result of lower wind across the country, Atlantica benefits from a well-diversified portfolio in which part of the revenue is based on availability, thus allowing the company to offset this negative impact. On the next slide, number seven, we would like to review our net debt position. We closed the quarter with a net corporate debt of $978 million. With this, our net corporate debt took half the pre-corporate debt service ratios to the 3.4 times. In addition, net project debt as of June 30, 2023, was $4,024 million, remaining flat compared to December 2022. We continue to have ample liquidity to finance a growth with $72.8 million in cash at the corporate level and $393.1 million available under our revolving credit facility, which totaled $465.9 of corporate liquidity. I will now turn the call back over to Santiago.