Enlight Renewable Energy .(ENLT) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Full year 2024 revenues grew by 53% year-over-year to $399 million, while adjusted EBITDA increased by 49$289 million [9][10] - Operating cash flow reached $193 million for the year, up 29$67 million due to one-time items last year [10][11] - In Q4 2024, revenues grew by 35% year-over-year to $104 million, and adjusted EBITDA increased by 31$65 million [10][35] Business Line Data and Key Metrics Changes - New projects were the main driver of growth, with 650 megawatts of generation capacity and 1.6 gigawatt hours of energy storage capacity connected across Israel, Europe, and the U.S. [11][12] - Revenues from electricity sales in Q4 2024 were $93 million, a 26$74 million in Q4 2023, driven by new operational projects [32][34] Market Data and Key Metrics Changes - The U.S. electricity consumption forecast rose for the second consecutive year, driven by demand from data centers and electric vehicles [13] - 34% of Q4 2024 revenues were denominated in Israeli shekels, 47% in euros, and 18% in U.S. dollars [34] Company Strategy and Development Direction - The company plans to connect 3.3 gigawatts of generation and 5.1 gigawatt hours of storage projects in the U.S. by the end of 2027 [13][20] - The company aims to maintain at least a 70% stake in its portfolio while pursuing sell-downs to accelerate growth [49][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the supply chain and the ability to mitigate impacts from tariffs and policy changes [15][54] - For 2025, the company expects revenues between $490 million and$510 million, reflecting a 25% increase from 2024 [21][38] Other Important Information - The company completed financial closings for several projects, raising $1 billion in term loans and tax equity [18][37] - A major asset sale in Israel is expected to generate a$94 million profit in Q1 2025 [19][37] Q&A Session Summary Question: Contribution from major projects in 2025 guidance - Management indicated that none of the new projects are included in the 2025 guidance, which is based on projects connected by the end of 2024 [45][46] Question: Future sell-downs and capital needs - The company plans to hold at least 70% of its portfolio long-term, with current growth allowing for some sell-downs to accelerate growth [49][51] Question: Impact of U.S. administration on financing - Management noted that current executive orders have minimal impact on projects, with tariffs on Chinese goods having a minor effect [53][54] Question: Clarification on tax benefits in guidance - The adjusted EBITDA guidance for 2025 includes an estimated $60 million to$80 million in income from U.S. tax benefits [58][84] Question: Performance versus previous guidance - Management attributed strong results to good operational performance and advancing CODs ahead of schedule [71][72] Question: Collaboration with NewMed Energy in Morocco - The company sees significant opportunities in Morocco due to strong renewable resources and plans for energy export to Europe [80][81]