Enlight Renewable Energy Ltd. announces a notable increase in revenues for the second quarter of 2024, reaching $85 million, representing year-on-year growth of 61%.
This increase is mainly due to the commissioning of new solar and wind projects, as well as increased production and the indexation of energy prices in the company’s long-term contracts.
However, despite this strong revenue performance, the company’s net income fell by 58% to $9 million.
This was mainly due to the impact of the revaluation of inflation-indexed debt in Israel, as well as the absence of the exceptional gains recorded in the same quarter of the previous year.
Strategic expansion and geographic diversification
Enlight continues to expand its project portfolio, with key developments in the USA, Europe and the Middle East.
The Atrisco Solar and Energy Storage project in New Mexico, comprising 364 MW of solar capacity and 1.2 GWh of storage capacity, recently completed its construction phase and is expected to start generating revenues in the coming months.
This project underlines Enlight’s growing commitment to the US market, where the company expects to generate a significant proportion of its future revenues.
In Europe, Enlight is benefiting from the commissioning of the Tapolca solar project in Hungary, as well as the extension of the Gecama wind farm in Spain.
The latter benefited from higher electricity prices on the market, contributing to a 37% year-on-year increase in project revenues.
The company is also continuing to develop its solar and storage cluster in Israel, with several new projects adding significant capacity.
Upward revision of annual forecasts
Following the solid performance recorded in the first half of 2024, Enlight is revising its full-year forecasts upwards.
The company now expects sales of between $345 and $360 million, compared with an initial forecast of $335 to $360 million.
Similarly, adjusted EBITDA for 2024 is now estimated at between $245 and $260 million, compared with an initial range of $235 to $255 million.
These revisions reflect the company’s confidence in the robustness of its project portfolio and its ability to maintain sustained growth.
Enlight continues to diversify its sources of financing, notably through the financial closing of the Atrisco project, which secured over $400 million from a banking consortium led by HSBC.
This approach enabled the company to recycle $234 million in equity, strengthening its financial position and its ability to invest in new projects.
Outlook and risk management
Enlight takes a proactive approach to managing the risks associated with volatile energy prices, particularly in Europe.
The company has put in place hedging strategies that protect its margins, by fixing sales prices for a large proportion of its production.
For example, the Gecama project in Spain is hedged against 65% of its estimated 2024 production at an average price of 100 EUR/MWh.
These measures enable Enlight to minimize the impact of electricity price fluctuations on its financial results.
The company also remains attentive to regulatory developments and market conditions in the regions where it operates, particularly in the United States, where it expects to significantly increase its market share over the next few years.
With a strategy focused on geographic and sector diversification, as well as prudent cost and risk management, Enlight is well positioned to maintain its growth trajectory.
