Utility-scale transatlantic clean energy independent power producer
Alternus Clean Energy, Inc. (NASDAQ: ALCE) (“Alternus” or the
“Company”) today announced its audited financial results for
the full year 2023 under US GAAP format. The 2023 financial report
is included in a Form 10-K filed with the Securities and Exchange
Commission. The 2023 financial report is available to view on the
Alternus’ website at
https://ir.alternusenergy.com/financials-filings/sec-filings.
Company Highlights:
- Increase in revenue from by 17.5%
YoY;
- Increase in revenue offtake by 3.8%
YoY;
- Debt reduced by $77 million
subsequent to balance sheet;
- Total of 165 GWH of clean energy
produced in 2023, further offsetting global CO2 emissions;
- Completed business combination
agreement with Clean Earth Acquisitions Corp., (“Clean Earth”)
priorly listed as “CLIN”, “CLINW”, and “CLINU” over NASDAQ;
- Listed on NASDAQ in December 2023
under the ticker symbol “ALCE”;
- Divestment of non-strategic
operating assets in Poland and the Netherlands, reducing debt by
over $75M;
- Net loss of $69.5M, due primarily
to one-time events including, $15.8M related to divestment of
projects in non-core countries, $16.6M for fair value movement
related to the forward purchase agreement, $11.2M related to the
Solis bond waiver fees, and $5.5M related to loss on disposal of
assets.
Commenting on the results, Vincent
Browne, Chairman and Group CEO said:
“In 2023, we focused on a strategic business
realignment and consolidation, refining our core operations to pave
the way for further growth in key high-potential markets across the
US and Europe. One standout moment was our successful merger with
Clean Earth Acquisitions Corp (CLIN), culminating in our Nasdaq
listing (NASDAQ: “ALCE”)—a significant achievement that fills us
with pride. Now, equipped with renewed energy and resolve, we're
poised to increase our impact, broaden our scope, and ignite
further growth in our business. We remain focused on our goal of
reaching 3GW of operational assets within five years.”
Alternus Chief Financial Officer Joseph
E. Duey added:
“2023 represented a year of strategic
development for Alternus. We announced our listing on Nasdaq in
December 2023 and are now well positioned organisationally to
deliver on our goals. Our 2023 balance sheet is reflective of a
conservative position. Subsequent to this balance sheet we have
reduced debt by $77 million. We are now in a process of refinancing
assets over a longer-term period, to align our debt with the
longevity of our continuing asset portfolio. Once restructured the
debt will be spread out of our balance sheet. We also have a secure
pipeline of potential acquisition projects to execute on within the
coming 12-18 months and are confident that we have the ability to
access equity capital as needed and fund the growth plan we have in
place.”
Results Underpinned by a Diversified
Portfolio of Assets
The table below summarises the Company’s portfolio of
assets as of December 31, 2023.
COUNTRY |
|
|
MEGAWATTSINSTALLED |
|
|
Percentage |
|
Romania |
|
|
|
40.1 |
|
|
|
91.3 |
% |
United States |
|
|
|
3.8 |
|
|
|
8.7 |
% |
Total |
|
|
|
43.9 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
The Company announced the divestment of non-core
assets in late 2023, in line with our renewed strategy to focus on
strategic markets across Europe and the US. A focus will be on
delivering on the advanced stage development pipeline portfolio of
over 300MW in Italy and Spain and on executing on near-term
acquisitions of both operating and ready-to-build projects from a
growing pipeline of ‘equity light’ projects in the US.
It was announced in 2023 that Alternus acquired
32MWp solar PV project in Tennessee, USA, known as ‘Dancing Horse.’
Dancing Horse is expected to start operating in Q1 2025 and should
produce annual revenue of approximately $2.3 million when fully
operational. 100% of the offtake from this facility is secured by
30-year power purchase agreements with two regional utilities.
The Company also announced a planned expansion
in Spain with the acquisition of Solar PV projects totalling 32 MWp
of Solar PV projects in Valencia, Spain, known as the NF Projects.
The portfolio consists of six projects in total: five of which,
totalling 24.4 MWp, are expected to reach operation in Q2 2024,
with the remaining project expected to achieve operation in Q1
2025.
Once operating, 10-year average annual revenues
from the initial portfolio of five will be approximately $2.3
million, going to $2.8 million once all are connected.
Business Combination and Nasdaq
Listing
The Company successfully started trading over
Nasdaq on the 26th of December 2023 under the ticker (NASDAQ: ALCE)
following a successful business combination with its predecessor,
Clean Earth. Under the terms of the business combination agreement,
the Company acquired the majority of Alternus Energy Group PLC, a
company incorporated under the laws of Ireland (“AEG”)’s assets,
with simultaneously issuing it common stock, in turn making it the
largest shareholder in the Company. AEG continues to exist as a
separate legal entity and continues to trade on the Euronext Growth
stock market in Oslo under the ticker (OSE: ALT). The completion of
the business combination with Clean Earth and resultant listing on
Nasdaq, is a key strategic pillar in our commitment towards a
sustainable future.
The below table summarises the Company’s financial
performance for the full year 2023, compared to the full year
2022.
|
2023 |
2022 |
$ Change |
% Change |
Revenues |
20.1 |
17.1 |
3.0 |
18% |
Cost of Sales |
(4.5) |
(4.4) |
(0.1) |
2% |
Gross Profit |
15.6 |
12.7 |
2.9 |
23% |
Gross Margin |
78% |
74% |
3% |
5% |
Selling and General Expenses |
(11.2) |
(5.7) |
(5.5) |
96% |
EBITDA |
4.4 |
7.0 |
(2.6) |
-37% |
|
|
|
|
|
Interest Charges |
(18.6) |
(10.3) |
(8.3) |
81% |
Depreciation and amortization |
(3.7) |
(3.7) |
– |
0% |
Total Other Expense |
(35.8) |
(11.6) |
(24.2) |
209% |
Net Loss |
(53.7) |
(18.6) |
(35.1) |
189% |
|
|
|
|
|
Subsequent Events Strengthen Outlook and
Deliver on Sustained Growth
After the close of the year, the Company
announced material developments that it believes strengthens its
growth position.
Close of Sale in the
Netherlands
The Company announced the closing of the sale of
100% of the share capital in Zoonepark Rilland B.V. to Theia on the
21st of February 2024. This activity was a planned activity in line
with the divestment of non-core projects within the operating
portfolio.
Green Bond Covenant Waiver
The bondholders voted to approve the resolutions
for the extension of the waivers and the maturity date to the Bond
Terms and the maturity date until 30 April 2024, with the right to
further extend to May 31, 2024, at the Bond Trustee’s discretion,
and thereafter on a month-to-month basis to 29 November 2024 at the
Bond Trustee’s discretion and approval from a majority of
Bondholders.
Project Development
On 4 April 2024 it was announced that Alternus
had entered into a joint venture with Acadia Energy (Acadeia), a
microgrid and renewable energy developer, to develop 200MW of
Microgrid Projects in New York State. The venture will focus on
developing and operating a portfolio of microgrid projects over the
next 2-3 years. Under the terms of the joint venture, Alternus will
hold a 51% majority ownership stake in the projects.
About Alternus Clean Energy,
Inc.
Alternus is a transatlantic clean energy
independent power producer. Headquartered in the United States, we
currently develop, install, own, and operate utility-scale solar
parks in the North America and Europe. Our highly motivated and
dynamic team at Alternus have achieved rapid growth in recent
years. Building on this, our goal is to reach 3GW of operating
projects within five years through continued organic development
activities and targeted strategic opportunities. Our vision is to
become a leading provider of 24/7 clean energy delivering a
sustainable future of renewable power with people and planet in
harmony. For more information
visit www.alternusenergy.com.
Forward-Looking Statements
Certain information contained in this release,
including any information on the Company’s plans or future
financial or operating performance and other statements that
express the Company’s management’s expectations or estimates of
future performance, constitute forward-looking statements. When
used in this notice, words such as “anticipate,” “believe,”
“continue,” “could,” “estimate,” “expect,” “intend,” “may,”
“might,” “plan,” “possible,” “potential,” “predict,” “project,”
“should,” “would” and similar expressions, as they relate to us or
our management team, identify forward-looking statements. Such
forward-looking statements are based on the beliefs of management,
as well as assumptions made by, and information currently available
to, the Company’s management. Such statements are based on a number
of estimates and assumptions that are subject to significant
business, economic and competitive uncertainties, many of which are
beyond the control of the Company. The Company cautions that such
forward-looking statements involve known and unknown risks and
other factors that may cause the actual financial results,
performance, or achievements of the Company to differ materially
from the Company’s estimated future results, performance or
achievements expressed or implied by the forward-looking
statements. These statements should not be relied upon as
representing Alternus’ assessments of any date after the date of
this release. The Company undertakes no obligation to update these
statements for revisions or changes after the date of this release,
except as required by law.
For More Information:
Alternus Investors:Alternus
Clean Energyir@alternusenergy.com+1 (913) 815-1557
Alternus Media:The Blueshirt
Groupalternus@blueshirtgroup.com+1 (323) 240-5796
ALTERNUS CLEAN ENERGY, INC., AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(in thousands, except share and per share
data) |
|
|
|
As ofDecember 31, |
|
|
As ofDecember 31, |
|
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4,618 |
|
|
$ |
705 |
|
Accounts receivable, net |
|
|
651 |
|
|
|
3,335 |
|
Unbilled energy incentives
earned |
|
|
5,607 |
|
|
|
4,954 |
|
Prepaid expenses and other
current assets |
|
|
3,344 |
|
|
|
1,482 |
|
Taxes recoverable |
|
|
631 |
|
|
|
1,388 |
|
Restricted Cash |
|
|
19,161 |
|
|
|
– |
|
Current discontinued assets
held for sale |
|
|
80,943 |
|
|
|
– |
|
Total Current
Assets |
|
|
114,955 |
|
|
|
11,864 |
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
61,302 |
|
|
|
68,953 |
|
Right of use asset |
|
|
1,330 |
|
|
|
1,004 |
|
Restricted cash |
|
|
– |
|
|
|
6,598 |
|
Other receivable |
|
|
1,483 |
|
|
|
– |
|
Capitalized development cost
and other long-term assets, net |
|
|
6,216 |
|
|
|
2,146 |
|
Non-current discontinued
assets held for sale |
|
|
– |
|
|
|
87,750 |
|
Total
Assets |
|
$ |
185,286 |
|
|
$ |
178,315 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDER’’ EQUITY (DEFICIT) |
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
5,084 |
|
|
$ |
1,138 |
|
Accrued liabilities |
|
|
24,410 |
|
|
|
3,471 |
|
Taxes payable |
|
|
14 |
|
|
|
616 |
|
Deferred income |
|
|
5,607 |
|
|
|
4,954 |
|
Operating lease liability |
|
|
175 |
|
|
|
75 |
|
Green bonds |
|
|
166,122 |
|
|
|
– |
|
Convertible and
non-convertible promissory notes, net of debt issuance costs |
|
|
31,420 |
|
|
|
– |
|
Current discontinued
liabilities held for sale |
|
|
14,259 |
|
|
|
– |
|
Total Current
Liabilities |
|
|
247,091 |
|
|
|
10,254 |
|
|
|
|
|
|
|
|
|
|
Green bonds |
|
|
– |
|
|
|
149,481 |
|
Convertible and
non-convertible promissory notes, net of debt issuance costs |
|
|
– |
|
|
|
9,214 |
|
Operating lease liability, net
of current portion |
|
|
1,252 |
|
|
|
960 |
|
Asset retirement
obligations |
|
|
197 |
|
|
|
397 |
|
Non-current discontinued
liabilities held for sale |
|
|
– |
|
|
|
10,591 |
|
Total
Liabilities |
|
|
248,540 |
|
|
|
180,897 |
|
|
|
|
|
|
|
|
|
|
Shareholders’
Deficit |
|
|
|
|
|
|
|
|
Preferred stock, $0.0001 par
value, 1,000,000 authorized as of December 31, 2023. 0 issued and
outstanding as of December 31, 2023. |
|
|
– |
|
|
|
– |
|
Common Stock, $0.0001 par
value, 150,000,000 authorized as of December 31, 2023; 71,905,363
issued and outstanding as of December 31, 2023, and 57,500,000
issued and outstanding as of December 31, 2022. |
|
|
7 |
|
|
|
6 |
|
Additional paid in
capital |
|
|
27,874 |
|
|
|
19,797 |
|
Foreign Currency Translation
Reserve |
|
|
(2,925 |
) |
|
|
(3,639 |
) |
Accumulated deficit |
|
|
(88,210 |
) |
|
|
(18,746 |
) |
Total Shareholders’
Deficit |
|
|
(63,254 |
) |
|
|
(2,582 |
) |
Total Liabilities and
Shareholder’ Deficit |
|
$ |
185,286 |
|
|
$ |
178,315 |
|
ALTERNUS CLEAN ENERGY, INC., AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS |
(in thousands, except share and per share
data) |
|
|
|
Year Ended December 31 |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Revenues |
|
$ |
20,084 |
|
|
$ |
17,089 |
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
(4,468 |
) |
|
|
(4,439 |
) |
Selling, general and
administrative |
|
|
(11,228 |
) |
|
|
(5,720 |
) |
Depreciation, amortization,
and accretion |
|
|
(3,657 |
) |
|
|
(3,677 |
) |
Development Costs |
|
|
(798 |
) |
|
|
(11,372 |
) |
Loss on disposal of
assets |
|
|
(5,501 |
) |
|
|
(79 |
) |
Total operating
expenses |
|
|
(25,652 |
) |
|
|
(25,287 |
) |
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(5,568 |
) |
|
|
(8,198 |
) |
|
|
|
|
|
|
|
|
|
Other
income/(expense): |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(18,562 |
) |
|
|
(10,256 |
) |
Fair value movement of FPA
Asset |
|
|
(16,642 |
) |
|
|
– |
|
Solis bond waiver fee |
|
|
(11,232 |
) |
|
|
– |
|
Other expense |
|
|
(1,642 |
) |
|
|
(684 |
) |
Other income |
|
|
9 |
|
|
|
569 |
|
Total other expenses |
|
|
(48,069 |
) |
|
|
(10,371 |
) |
Loss before provision for
income taxes |
|
|
(53,637 |
) |
|
|
(18,569 |
) |
Income taxes |
|
|
(15 |
) |
|
|
– |
|
Net loss from
continuing operations |
|
|
(53,652 |
) |
|
|
(18,569 |
) |
|
|
|
|
|
|
|
|
|
Discontinued
operations: |
|
|
|
|
|
|
|
|
Income/(loss) from operations
of discontinued business component |
|
|
(3,885 |
) |
|
|
141 |
|
Impairment loss recognized on
the remeasurement to fair value less costs to sell |
|
|
(11,766 |
) |
|
|
– |
|
Income tax |
|
|
(161 |
) |
|
|
(21 |
) |
Net income/(loss) from
discontinued operations |
|
|
(15,812 |
) |
|
|
120 |
|
Net loss |
|
$ |
(69,464 |
) |
|
$ |
(18,449 |
) |
|
|
|
|
|
|
|
|
|
Net loss attributable to
common stockholders, basic |
|
|
(53,652 |
) |
|
|
(18,569 |
) |
Net loss per share
attributable to common stockholders, basic |
|
|
(0.93 |
) |
|
|
(0.32 |
) |
Net loss per share
attributable to common stockholders, diluted |
|
|
(0.93 |
) |
|
|
(0.32 |
) |
Weighted-average common stock
outstanding, basic |
|
|
57,862,598 |
|
|
|
57,500,000 |
|
Weighted-average common stock
outstanding, diluted |
|
|
57,862,598 |
|
|
|
57,500,000 |
|
|
|
|
|
|
|
|
|
|
Comprehensive loss: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(69,464 |
) |
|
$ |
(18,449 |
) |
Foreign currency translation
adjustment |
|
|
714 |
|
|
|
(992 |
) |
Comprehensive
loss |
|
$ |
(68,750 |
) |
|
$ |
(19,441 |
) |
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