Enlight Renewable Energy Ltd.

Good day and thank you for standing by. Welcome to the Enlight's second quarter 2024 earnings call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Yonah Weiss, Director. Please go ahead.

Thank you, operator. Good morning, everyone, and thank you for joining our second quarter 2024 earnings conference call for Enlight Renewable Energy. Before beginning this call, I would like to draw participants' attention to the following. Certain statements made on the call today, including but not limited to statements regarding business strategy and plans, our project portfolio, market opportunity, utility demand and potential growth, discussions with commercial counterparties and financing sources, pricing trends for materials, progress of company projects, including anticipated timing of related approvals and project completion and anticipated production delays, expected impact from various regulatory developments, completion of development, the potential impact of the current conflicts in Israel on operations and financial condition and company actions designed to mitigate such impact, and the company's future financial and operational results and guidance. including revenue and adjusted EBITDA, are forward-looking statements within the meaning of U.S. federal securities laws, which reflect management's best judgment based on currently available information. We reference certain project metrics in this earnings call, and additional information about such metrics can be found in our earnings release. These statements involve risks and uncertainties that may cause actual results to differ from our expectations. Please refer to our 2023 Annual Report, filed with the SEC on March 28, 2024, and other filings for more information on the specific factors that could cause actual results to differ materially from our forward-looking statements. Although we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call. Additionally, non-IFRS financial measures may be discussed on the call. These non-IFRS measures should be considered in addition to and not as a substitute for or in isolation from our results prepared in accordance with IFRS. Reconciliations to the most directly comparable IFRS financial measures are available in the earnings release and the earnings presentation for today's call, which are posted on our investor relations webpage. With me this morning are Gilad Yavetz, CEO and co-founder of Enlight, Nir Yehuda, CFO of Enlight, and Adam Pischel, CEO and co-founder of Clonera. Gilad will provide some opening remarks and will then turn the call over to Adam for a review of our U.S. activity and then to Nir for a review of our second quarter results. Our executive team will then be available to answer your questions.

Thank you, Yona, and thank you all for joining us today. Enlight continues to deliver excellent performance as we progress through 2024, and we are pleased to present a very strong set of financial results for the first half and second quarter of 2024. Comparing the first half of 2024 to the same period in 2023, revenue grew 42% to $175 million, adjusted EBITDA grew 33% to $126 million, net income dropped to $34 million, and cash flow from operation was lowered by 4% to $91 million. On a quarter-to-quarter basis, compared to last year, revenue was up 61% to $85 million, and adjusted EBITDA grew 39% to $58 million. Net income was $9 million versus $22 million, driven by inflation indexation impacts and the Clean Era earn-out calculation, which Shani will explain in more detail later on, while cash flow from operation rose to $56 million, up 42%. On the back of these results, we are pleased to increase our full year 2024 guidance ranges. We now expect 2024 revenues of $345 million to $360 million, up from $330 million to $360 million, while we now expect 2024 EBITDA of $245 to $260 million, up from $235 to $255. This represents an increase of $5 million and $7.5 million at the midpoint, respectively. Enlight is now in the midst of delivering on its major expansion plan, and we continue to execute on the build-out of our mature portfolio. From the beginning of 2024, we have completed construction on 0.5 gigawatt and 1.4 gigawatt hour of capacity, including our flagship Atrisco Solar and energy storage project in New Mexico. This capacity is expected to contribute $71 million in revenues and $56 million in EBITDA on a full year basis. In the next two quarters, we will start with construction capex on 810 megawatts and more than 2 gigawatt hour at three additional projects in the US, which are expected to contribute $132 million in revenues and $106 million in EBITDA on an annual basis when fully operational. In the next three years, our global generation and storage capacity will triple, reaching 5.4 gigawatts and 5.9 gigawatt hours by 2027. The United States is now experiencing a transformation in electricity demand. Power consumption is rising fast, And it's estimated that two-thirds of the growth in the U.S. power demand till the end of this decade can be attributed to the electricity needs of data centers, AI, and electric vehicles alone. This is being reflected in higher PPA prices. Enlight is uniquely positioned for a tight power market environment with a broad set of projects that are deliverable in the short to medium term. These include our flagship Atrisco project with 364 megawatts and 1.2 gigawatt hour capacity located in New Mexico, where we have recently achieved financial close for the energy storage portion of the complex for more than $400 million in loans and tax equity. This completes the financing for the entire Atrisco complex with the solar portion financed in December 2023. Atrisco construction has been completed with the gradual commencement of the solar component planned to begin in the coming weeks. We expect full COD of the co-located solar and energy storage complex to be reached by the end of the year. We are also beginning to build additional capacity in the western U.S. with country acres, quail ranch, and roadrunner, three major projects totaling 810 megawatts and 2.0 GWh capacity. We are now completing development and expect construction capex to begin by the end of 2024. Equipment prices remain favorable, with panels and battery prices having fallen by around 25 to 30% from the start of 2023. All these factors create extremely beneficial tailwinds for the project that we will be building between now and 2027, which we expect to yield an attractive unlevered return of approximately 10.5%. Adding in financing between 5.5% to 6% results in leveraged returns in the need to high TINs. Our European projects are benefiting from robust market conditions. Spanish electricity prices now in the 60 to 70 euro range are resulting in excellent financial performance at Hekama. The profitability of this project is well above what we modeled when we first planned it, and we have already recovered half of our equity investment in the past three years. We have hedged 65% of Hekama's anticipated 2024 generation for 100 euro per megawatt hour, and have already begun billing up a hedge for 2025, which so far covers 45% of next year's output at a price of 64 euro per megawatt hour. Hekama continues to excel on an operational level, with generation volumes up 14% and 17% for the second quarter of 2024 and first half 2024, respectively, when compared to the same periods last year. Construction at Project Pupin in Serbia continues on pace, with turbines now being delivered and installed on site. This 94 MW wind farm achieved financial close last quarter and is scheduled to reach COD during the second half of 2025. Finally, Tepolsa, a 60 MW fully merchant solar project, began operation on schedule at the end of July, marking the completion of our fifth project in Hungary. Enlight keeps on broadening its presence in Israel. Yesha and Reem, two projects that are part of the 248 megawatts and 593 megawatt-hour Israel solar and storage cluster, reached COD during the second quarter. The cluster is approaching its full capacity with three more projects left to be completed during 2024. We also received approval for 200 megawatts of additional interconnect to Israel's national grid which will be used to expand the offtake of existing projects as well as support the launching of new ones. On the commercial side, we continue to expand our reach into Israel's newly deregulated power sector. Our joint venture with Electropower to supply electricity to the country's household sector was formally launched in July, and we signed five additional PPAs with industrial customers. To sum up, This quarter showed strong financial performance, which is reflected in our results, and increased guidance ranges. The U.S. market presents a compelling opportunity to drive and light rapid growth. Power demand continues to rise, while equipment costs remain low, resulting in higher PPA prices and attractive project returns. We continue to progress with our development goals and project CODs on a global scale, and it is exactly such an environment which position Enlight to realize its dual goal of delivering higher-than-market growth at higher-than-market returns. I'd now like to hand the call over to Adam.