☒ Form 20-F
|
☐ Form 40-F
|
· |
Net profit attributable to the Company for the full year 2018 was $41.6 million, compared with $(111.8) million loss in 2017.
|
· |
Revenues in 2018 increased by 3.5% year-over-year to $1,043.8 million.
|
· |
Further Adjusted EBITDA including unconsolidated affiliates1 increased by 9.2% to
$858.7 million in 2018, compared with $786.6 million in 2017.
|
· |
Cash available for distribution (“CAFD”) was $171.5 million in 2018, meeting annual guidance.
|
· |
Quarterly dividend of $0.37 per share declared by the Board of Directors, representing a 19% increase compared with the same quarter of 2017.
|
· |
Maintaining DPS growth targets.
|
· |
Creation of a strategic review committee to evaluate strategic alternatives to optimize the value of the Company and to improve returns to shareholders.
|
1
|
Further Adjusted EBITDA including unconsolidated affiliates includes our share in EBITDA of unconsolidated affiliates. Additionally, for the full year 2017, it
includes the dividend from the preferred equity investment in Brazil or its compensation (see reconciliation on page 14).
|
Year ended December 31,
|
||||||||
(in thousands of U.S. dollars)
|
2018
|
2017
|
||||||
Revenue
|
$
|
1,043,822
|
$
|
1,008,381
|
||||
Profit / (loss) for the period attributable to the Company
|
41,596
|
(111,804
|
)
|
|||||
Further Adjusted EBITDA incl. unconsolidated affiliates2
|
858,717
|
786,575
|
||||||
Net cash provided by operating activities
|
401,043
|
385,623
|
||||||
CAFD3
|
171,546
|
170,568
|
2
|
Further Adjusted EBITDA including unconsolidated affiliates includes our share in EBITDA of unconsolidated affiliates. Additionally,
for the full year 2017, it includes the dividend from the preferred equity investment in Brazil or its compensation (see reconciliation on page 14).
|
3
|
CAFD for the year ended December 31, 2017 included $10.4 million of ACBH dividend compensation (see reconciliation on page 15).
|
Year ended December 31,
|
||||||||
2018
|
2017
|
|||||||
Renewable energy
|
||||||||
MW in operation4
|
1,496
|
1,442
|
||||||
GWh produced5
|
3,058
|
3,167
|
||||||
Efficient natural gas
|
||||||||
MW in operation
|
300
|
300
|
||||||
GWh produced
|
2,318
|
2,372
|
||||||
Electric Availability (%)6
|
99.8
|
%
|
100.5
|
%
|
||||
Electric transmission lines
|
||||||||
Miles in operation
|
1,152
|
1,099
|
||||||
Availability (%)7
|
99.9
|
%
|
97.9
|
%
|
||||
Water
|
||||||||
Mft3 in operation4
|
10.5
|
10.5
|
||||||
Availability (%)7
|
102.0
|
%
|
101.8
|
%
|
(in thousands of U.S. dollars)
|
Year ended December 31,
|
|||||||
2018
|
2017
|
|||||||
Revenue by geography
|
||||||||
North America
|
$
|
357,177
|
$
|
332,705
|
||||
South America
|
123,214
|
120,797
|
||||||
EMEA
|
563,431
|
554,879
|
||||||
Total revenue
|
$
|
1,043,822
|
$
|
1,008,381
|
||||
Further Adjusted EBITDA incl. unconsolidated affiliates by geography
|
||||||||
North America
|
$
|
308,748
|
$
|
282,328
|
||||
South America
|
100,234
|
108,766
|
||||||
EMEA
|
449,735
|
395,481
|
||||||
Total Further Adjusted EBITDA incl. unconsolidated affiliates
|
$
|
858,717
|
$
|
786,575
|
4
|
Represents total installed capacity in assets owned at the end of the period, regardless of our percentage of ownership in each of
the assets.
|
5
|
Includes curtailment production in wind assets for which we receive compensation.
|
6
|
Electric availability refers to operational MW over contracted MW with PEMEX.
|
7
|
Availability refers to actual availability divided by contracted availability.
|
(in thousands of U.S. dollars)
|
Year ended December 31,
|
|||||||
2018
|
2017
|
|||||||
Revenue by business sector
|
||||||||
Renewable energy
|
$
|
793,557
|
$
|
767,226
|
||||
Efficient natural gas
|
130,799
|
119,784
|
||||||
Electric transmission lines
|
95,998
|
95,096
|
||||||
Water
|
23,468
|
26,275
|
||||||
Total revenue
|
$
|
1,043,822
|
$
|
1,008,381
|
Further Adjusted EBITDA incl. unconsolidated affiliates by business sector
|
||||||||
Renewable energy
|
$
|
664,428
|
$
|
569,193
|
||||
Efficient natural gas
|
93,858
|
106,140
|
||||||
Electric transmission lines
|
78,461
|
87,695
|
||||||
Water
|
21,970
|
23,547
|
||||||
Total Further Adjusted EBITDA incl. unconsolidated affiliates
|
$
|
858,717
|
$
|
786,575
|
· |
The U.S. solar portfolio delivered a strong performance in 2018, with increased production from both Solana and Mojave. The U.S. solar portfolio reached its
highest yearly production ever, with a combined capacity factor of 28.2% in 2018.
|
· |
Production in Spain for the year ended December 31, 2018 decreased due to lower solar radiation. However, impact on revenue was limited, since most of the revenue
is based on the availability of assets and not on their actual production.
|
· |
Strong operating performance in 2018 by Kaxu (South Africa), reaching a capacity factor of 36.0% (compared with 24.9% in 2017).
|
· |
Finally, production of our wind assets in 2018 was generally in line with 2017.
|
8
|
Net corporate leverage calculated as corporate net debt divided by Cash Available For Distribution for the year 2018 before corporate debt service.
|
· |
2019 expected Further Adjusted EBITDA in the range of $820 million to $870 million.
|
· |
2019 expected CAFD guidance in the range of $180 million to $200 million.
|
9
|
Reflects 2019 expectations including full contribution from the Mojave project, for which the off-taker is PG&E. Under the current contract, we expect Mojave’s 2019
expected CAFD to range between $30 million to $35 million. PG&E filed for reorganization under Chapter 11 of the Bankruptcy Code on January 29, 2019, at this point we do not have the certainty that the current contract will be honored
by PG&E due to its current situation. See 2019 guidance reconciliation on page 16.
|
• |
they do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
|
• |
they do not reflect changes in, or cash requirements for, our working capital needs;
|
• |
they may not reflect the significant interest expense, or the cash requirements necessary, to service interest or principal payments, on our debts;
|
• |
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often need to be replaced in the future and Further
Adjusted EBITDA and CAFD do not reflect any cash requirements that would be required for such replacements;
|
• |
some of the exceptional items that we eliminate in calculating Further Adjusted EBITDA reflect cash payments that were made, or will be made in the future; and
|
•
|
the fact that other companies in our industry may calculate Further Adjusted EBITDA and CAFD differently than we do, which limits their usefulness as comparative
measures.
|
For the three-month period
ended December 31,
|
Year ended December 31,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Revenue
|
$
|
206,897
|
$
|
233,202
|
$
|
1,043,822
|
$
|
1,008,381
|
||||||||
Other operating income
|
20,343
|
24,345
|
132,557
|
80,844
|
||||||||||||
Raw materials and consumables used
|
(2,996
|
)
|
(5,774
|
)
|
(10,648
|
)
|
(16,983
|
)
|
||||||||
Employee benefit expenses
|
663
|
(5,602
|
)
|
(15,130
|
)
|
(18,854
|
)
|
|||||||||
Depreciation, amortization, and impairment charges
|
(118,898
|
)
|
(74,529
|
)
|
(362,697
|
)
|
(310,960
|
)
|
||||||||
Other operating expenses
|
(82,661
|
)
|
(90,788
|
)
|
(299,994
|
)
|
(284,461
|
)
|
||||||||
Operating profit
|
$
|
23,348
|
$
|
80,854
|
$
|
487,910
|
$
|
457,967
|
||||||||
Financial income
|
(159
|
)
|
(124
|
)
|
36,444
|
1,007
|
||||||||||
Financial expense
|
(118,679
|
)
|
(155,147
|
)
|
(425,019
|
)
|
(463,717
|
)
|
||||||||
Net exchange differences
|
565
|
202
|
1,597
|
(4,092
|
)
|
|||||||||||
Other financial income/(expense), net
|
2,904
|
17,132
|
(8,235
|
)
|
18,434
|
|||||||||||
Financial expense, net
|
$
|
(115,369
|
)
|
$
|
(137,937
|
)
|
$
|
(395,213
|
)
|
$
|
(448,368
|
)
|
||||
Share of profit/(loss) of associates carried under the equity method
|
541
|
1,651
|
5,231
|
5,351
|
||||||||||||
Profit/(loss) before income tax
|
$
|
(91,480
|
)
|
$
|
(55,432
|
)
|
$
|
97,928
|
$
|
14,950
|
||||||
Income tax
|
16,409
|
(94,507
|
)
|
(42,659
|
)
|
(119,837
|
)
|
|||||||||
Profit/(loss) for the period
|
$
|
(75,071
|
)
|
$
|
(149,939
|
)
|
$
|
55,269
|
$
|
(104,887
|
)
|
|||||
Loss/(profit) attributable to non-controlling interests
|
(3,845
|
)
|
(4,447
|
)
|
(13,673
|
)
|
(6,917
|
)
|
||||||||
Profit/(loss) for the period attributable to the Company
|
$
|
(78,916
|
)
|
$
|
(154,386
|
)
|
$
|
41,596
|
$
|
(111,804
|
)
|
|||||
Weighted average number of ordinary shares outstanding (thousands)
|
100,217
|
100,217
|
100,217
|
100,217
|
||||||||||||
Basic and diluted earnings per share attributable to Atlantica Yield plc (U.S. dollar per share)
|
$
|
(0.79
|
)
|
$
|
(1.54
|
)
|
$
|
0.42
|
$
|
(1.12
|
)
|
Assets
|
As of December 31,
2018
|
As of December 31,
2017
|
||||||
Non-current assets
|
||||||||
Contracted concessional assets
|
$
|
8,549,181
|
$
|
9,084,270
|
||||
Investments carried under the equity method
|
53,419
|
55,784
|
||||||
Financial investments
|
52,670
|
45,242
|
||||||
Deferred tax assets
|
136,066
|
165,136
|
||||||
Total non-current assets
|
$
|
8,791,336
|
9,350,432
|
|||||
Current assets
|
||||||||
Inventories
|
$
|
18,924
|
17,933
|
|||||
Clients and other receivables
|
236,395
|
244,449
|
||||||
Financial investments
|
240,834
|
210,138
|
||||||
Cash and cash equivalents
|
631,542
|
669,387
|
||||||
Total current assets
|
$
|
1,127,695
|
$
|
1,141,907
|
||||
Total assets
|
$
|
9,919,031
|
$
|
10,492,339
|
||||
Equity and liabilities
|
||||||||
Share capital
|
$
|
10,022
|
$
|
10,022
|
||||
Parent company reserves
|
2,029,940
|
2,163,229
|
||||||
Other reserves
|
95,011
|
80,968
|
||||||
Accumulated currency translation differences
|
(68,315
|
)
|
(18,147
|
)
|
||||
Retained Earnings
|
(449,274
|
)
|
(477,214
|
)
|
||||
Non-controlling interest
|
138,728
|
136,595
|
||||||
Total equity
|
$
|
1,756,112
|
$
|
1,895,453
|
||||
Non-current liabilities
|
||||||||
Long-term corporate debt
|
$
|
415,168
|
$
|
574,176
|
||||
Long-term project debt
|
4,826,659
|
5,228,917
|
||||||
Grants and other liabilities
|
1,658,126
|
1,636,060
|
||||||
Related parties
|
33,675
|
141,031
|
||||||
Derivative liabilities
|
279,152
|
329,731
|
||||||
Deferred tax liabilities
|
211,000
|
186,583
|
||||||
Total non-current liabilities
|
$
|
7,423,780
|
$
|
8,096,498
|
||||
Current liabilities
|
||||||||
Short-term corporate debt
|
268,905
|
68,907
|
||||||
Short-term project debt
|
264,455
|
246,291
|
||||||
Trade payables and other current liabilities
|
192,033
|
155,144
|
||||||
Income and other tax payables
|
13,746
|
30,046
|
||||||
Total current liabilities
|
$
|
739,139
|
$
|
500,388
|
||||
Total equity and liabilities
|
$
|
9,919,031
|
$
|
10,492,339
|
For the three-month period
ended December 31,
|
For the twelve-month period
ended December 31,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Profit/(loss) for the period
|
(75,071
|
)
|
(149,939
|
)
|
55,269
|
(104,887
|
)
|
|||||||||
Financial expense and non-monetary adjustments
|
202,826
|
320,432
|
697,655
|
848,840
|
||||||||||||
Profit for the period adjusted by financial expense and non-monetary adjustments
|
$
|
127,755
|
$
|
170,493
|
$
|
752,924
|
$
|
743,953
|
||||||||
Variations in working capital
|
78,676
|
38,706
|
(18,344
|
)
|
(8,797
|
)
|
||||||||||
Net interest and income tax paid
|
(143,721
|
)
|
(150,866
|
)
|
(333,537
|
)
|
(349,533
|
)
|
||||||||
Net cash provided by/(used in) operating activities
|
$
|
62,710
|
$
|
58,333
|
$
|
401,043
|
$
|
385,623
|
||||||||
Investment in contracted concessional assets10
|
6,964
|
37,564
|
68,048
|
30,058
|
||||||||||||
Other non-current assets/liabilities
|
5,838
|
14,792
|
(16,668
|
)
|
8,183
|
|||||||||||
(Acquisitions)/Sales of subsidiaries and other
|
(63,866
|
)
|
2,763
|
(70,672
|
)
|
30,124
|
||||||||||
Investments in entities under the equity method
|
-
|
549
|
4,432
|
3,003
|
||||||||||||
Net cash provided by/(used in) investing activities
|
$
|
(51,064
|
)
|
$
|
55,668
|
$
|
(14,860
|
)
|
$
|
71,368
|
||||||
Net cash provided by/(used in) financing activities
|
$
|
(123,138
|
)
|
$
|
(243,820
|
)
|
$
|
(405,231
|
)
|
$
|
(416,327
|
)
|
||||
Net increase/(decrease) in cash and cash equivalents
|
$
|
(111,492
|
)
|
$
|
(129,819
|
)
|
$
|
(19,048
|
)
|
$
|
40,664
|
|||||
Cash and cash equivalents at beginning of the period
|
744,636
|
794,094
|
669,387
|
594,811
|
||||||||||||
Translation differences in cash or cash equivalent
|
(1,602
|
)
|
5,112
|
(18,797
|
)
|
33,912
|
||||||||||
Cash & cash equivalents at end of the period
|
$
|
631,542
|
$
|
669,387
|
$
|
631,542
|
$
|
669,387
|
10
|
Investments in contracted concessional assets includes proceeds for $72.6 million and investments for $4.6 million in 2018, and proceeds for $42.5 million and investments
for $12.4 million in 2017.
|
(in thousands of U.S. dollars)
|
For the three-month period
ended December 31,
|
For the twelve-month period
ended December 31,
|
||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Profit/(loss) for the period attributable to the Company
|
$
|
(78,916
|
)
|
$
|
(154,386
|
)
|
$
|
41,596
|
$
|
(111,804
|
)
|
|||||
Profit attributable to non-controlling interest
|
3,845
|
4,447
|
13,673
|
6,917
|
||||||||||||
Income tax
|
(16,409
|
)
|
94,507
|
42,659
|
119,837
|
|||||||||||
Share of loss/(profit) of associates carried under the equity method
|
(541
|
)
|
(1,651
|
)
|
(5,231
|
)
|
(5,351
|
)
|
||||||||
Financial expense, net
|
115,369
|
137,937
|
395,213
|
448,367
|
||||||||||||
Operating profit
|
$
|
23,348
|
$
|
80,854
|
$
|
487,910
|
$
|
457,967
|
||||||||
Depreciation, amortization, and impairment charges
|
118,898
|
74,530
|
362,697
|
310,960
|
||||||||||||
Dividend from exchangeable preferred equity investment in ACBH
|
-
|
-
|
-
|
10,383
|
||||||||||||
Further Adjusted EBITDA
|
$
|
142,246
|
$
|
155,384
|
$
|
850,607
|
$
|
779,310
|
||||||||
Atlantica’s pro-rata share of EBITDA from Unconsolidated Affiliates
|
2,024
|
2,049
|
8,110
|
7,265
|
||||||||||||
Further Adjusted EBITDA including unconsolidated affiliates
|
$
|
144,270
|
$
|
157,433
|
$
|
858,717
|
$
|
786,575
|
(in thousands of U.S. dollars)
|
For the three-month period
ended December 31,
|
For the twelve-month period
ended December 31,
|
||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Net cash provided by operating activities
|
$
|
62,710
|
$
|
58,333
|
$
|
401,043
|
$
|
385,623
|
||||||||
Net interest and income tax paid
|
143,721
|
150,867
|
333,537
|
349,533
|
||||||||||||
Variations in working capital
|
(78,676
|
)
|
(38,706
|
)
|
18,344
|
8,797
|
||||||||||
Other non-cash adjustments and other
|
14,491
|
(15,110
|
)
|
97,683
|
35,357
|
|||||||||||
Further Adjusted EBITDA
|
$
|
142,246
|
$
|
155,384
|
$
|
850,607
|
$
|
779,310
|
||||||||
Atlantica’s pro-rata share of EBITDA from unconsolidated affiliates
|
2,024
|
2,049
|
8,110
|
7,265
|
||||||||||||
Further Adjusted EBITDA including unconsolidated affiliates
|
$
|
144,270
|
$
|
157,433
|
$
|
858,717
|
$
|
786,575
|
(in thousands of U.S. dollars)
|
For the three-month period
ended December 31,
|
For the twelve-month period
ended December 31,
|
||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Profit/(loss) for the period attributable to the Company
|
$
|
(78,916
|
)
|
$
|
(154,386
|
)
|
$
|
41,596
|
$
|
(111,804
|
)
|
|||||
Profit attributable to non-controlling interest
|
3,845
|
4,447
|
13,673
|
6,917
|
||||||||||||
Income tax
|
(16,409
|
)
|
94,507
|
42,659
|
119,837
|
|||||||||||
Share of loss/(profit) of associates carried under the equity method
|
(541
|
)
|
(1,651
|
)
|
(5,231
|
)
|
(5,351
|
)
|
||||||||
Financial expense, net
|
115,369
|
137,937
|
395,213
|
448,368
|
||||||||||||
Operating profit
|
$
|
23,348
|
$
|
80,854
|
$
|
487,910
|
$
|
457,967
|
||||||||
Depreciation, amortization, and impairment charges
|
118,898
|
74,530
|
362,697
|
310,960
|
||||||||||||
Dividends from exchangeable preferred equity investment in ACBH
|
-
|
-
|
-
|
10,383
|
||||||||||||
Atlantica’s pro-rata share of EBITDA from unconsolidated affiliates
|
2,024
|
2,049
|
8,110
|
7,265
|
||||||||||||
Further Adjusted EBITDA including unconsolidated affiliates
|
$
|
144,270
|
$
|
157,433
|
$
|
858,717
|
$
|
786,575
|
||||||||
Atlantica’s pro-rata share of EBITDA from unconsolidated affiliates
|
(2,024
|
)
|
(2,049
|
)
|
(8,110
|
)
|
(7,265
|
)
|
||||||||
Dividends from equity method investments
|
-
|
549
|
4,432
|
3,003
|
||||||||||||
Non-monetary items
|
(15,057
|
)
|
14,906
|
(99,280
|
)
|
(20,882
|
)
|
|||||||||
Interest and income tax paid
|
(143,721
|
)
|
(150,866
|
)
|
(333.537
|
)
|
(349,533
|
)
|
||||||||
Principal amortization of indebtedness
|
(127,947
|
)
|
(113,362
|
)
|
(229,647
|
)
|
(209,742
|
)
|
||||||||
Deposits into/ withdrawals from restricted accounts
|
6,149
|
(1,205
|
)
|
(30,837
|
)
|
(28,386
|
)
|
|||||||||
Change in non-restricted cash at project level
|
95,596
|
83,397
|
29,986
|
(20,992
|
)
|
|||||||||||
Dividends paid to non-controlling interests
|
-
|
-
|
(9,745
|
)
|
(4,638
|
)
|
||||||||||
Changes in other assets and liabilities
|
81,815
|
49,621
|
(10,433
|
)
|
22,428
|
|||||||||||
Cash Available For Distribution11
|
$
|
39,081
|
$
|
38,424
|
$
|
171,546
|
$
|
170,568
|
11
|
CAFD for the twelve-month period ended December 31, 2017 includes $10.4 million of ACBH dividend compensation.
|
(in millions of U.S. dollars)
|
Guidance
2019E
|
|||
Further Adjusted EBITDA including unconsolidated affiliates
|
820 – 870
|
|||
Atlantica’s pro-rata share of EBITDA from unconsolidated affiliates
|
(7)
|
|||
Dividends from unconsolidated affiliates
|
0 – 5
|
|||
Non-monetary items
|
(30)-(40)
|
|
||
Interest and income tax paid
|
(310)-(320)
|
|
||
Changes in other assets and liabilities and change in available cash at project level
|
(43)-(48)
|
|
||
Principal amortization of indebtedness
|
(250)-(260)
|
|
||
Cash Available For Distribution
|
180 - 200
|
Chief Financial Officer
|
Investor Relations & Communication
|
Francisco Martinez-Davis
|
Leire Perez
|
E ir@atlanticayield.com
|
E ir@atlanticayield.com
|
T +44 20 3499 0465
|
|
ATLANTICA YIELD PLC
|
||
|
|
|
|
/s/ Santiago Seage
|
|||
|
|
Name:
|
Santiago Seage
|
|
|
Title:
|
Chief Executive Officer
|