Abengoa Yield Announces First Quarter 2015 Financial Results, Announces a 450 MW Acquisition From Abengoa and Increases 2016 Guidance

  • Announces first quarter results with an excellent CAFD generation of $38.5 million and further adjusted EBITDA including unconsolidated affiliates of $105.2 million, a 106 % increase compared to the first quarter of 2014.
  • Quarterly dividend approved by the Board of Directors, for a total amount of $0.34 per share, over 30 % higher than previous quarter.
  • Announces acquisition from Abengoa of 450 MW in renewable energy assets for $669 million, with a 9.4 % CAFD yield financed with $670 million proceeds from a capital increase priced Friday, May 8 at $33.14 per share, which was based on a 3 % discount versus May 7 closing price.
  • Raises 2016 Dividend per Share guidance by up to 9 % to $2.10-$2.15 per share, representing 30 % to 34 % growth in 2016 vs 2015.
  • Yearly dividend per share growth after 2016 expected to be 12 % to 15 %, with current Abengoa ROFO assets expected to contribute CAFD of $310-360 million.

First quarter results

WASHINGTON, May 11, 2015 (GLOBE NEWSWIRE) -- Abengoa Yield (Nasdaq:ABY), the sustainable total return company that owns a diversified portfolio of contracted assets in the energy and environment sectors, reported revenues of $118.3 million for the three months ended March 31, 2015, representing an 85 % increase compared to the first quarter of 2014 and Further Adjusted EBITDA including unconsolidated affiliates of $105.2 million, representing a 106 % increase compared to the same period of 2014. Cash Available for Distribution reached $38.5 million, more than one quarter of the 2015 CAFD guidance in spite of seasonality.

Increase in quarterly dividend

Abengoa Yield announced today that the Board of Directors declared a quarterly dividend corresponding to the first quarter of 2015, amounting to $0.34 per share, representing more than a 30 % increase with respect to our last quarterly dividend and a very comfortable pay-out ratio of 71 %. This dividend is expected to be paid on or about June 15, 2015 to shareholders of record on May 29, 2015.

$669 million acquisition of assets from Abengoa announced

Abengoa Yield has reached an agreement with Abengoa to acquire four solar assets consisting of:

  • Helios (100 MW complex), Solnovas (150 MW complex) and the remaining 70 % stake in Helioenergy (100 MW complex of which Abengoa Yield already owns a 30 % stake), all in Spain.
  • A 51 % stake in Kaxu, a 100 MW plant in South Africa.

Abengoa Yield expects these new assets to generate incremental run rate cash available for distribution of approximately $63 million per year before debt service associated with acquisition financing. This represents a 9.4 % acquisition yield. The acquisition includes the exercise of the 12 % call option signed with Abengoa in December 2014. Pro forma of this transaction, 93 % of CAFD is expected to be denominated or indexed to US$.

The acquisition will be financed with $670 million proceeds of a capital increase priced Friday, May 8, at $33.14 per share, which was based on a 3 % discount versus May 7 closing price, pursuant to a private placement that will result in the issuance of 20,217,260 new shares. The private placement is expected to close on May 14, 2015. Abengoa has subscribed for 51 % of the newly-issued shares and will maintain its current stake in Abengoa Yield.

Average remaining useful life of the portfolio to be acquired is approximately 22 years. Helios, Solnovas and Helioenergy have been operating for two to five years, showing a solid operational track record and have significant management and operational synergies with existing solar assets in Abengoa Yield's portfolio. Kaxu solar plant is located in the Kalahari desert in South Africa site with a solar radiation higher than the Southwest of the United States and has a power purchase agreement in place for 100 % of the output with Eskom, with a guarantee from the Department of Energy of the Government of South Africa, rated BBB-, Baa2, BBB.1

Increase in Dividend per Share Guidance

Santiago Seage, CEO of Abengoa Yield, commented "Our largest acquisition of assets from Abengoa will double our existing installed capacity in renewable energy, while maintaining very good quality in our portfolio, with a best-in-class average remaining useful life of 23 years and all our CAFD generated from contracted or regulated assets with high quality off-takers. As a result, we are pleased to raise our guidance for the year 2016, in which we expect to distribute a dividend in the range of $2.10 to $2.15 per share, an increase of up to 9 % with respect to our previous guidance. With this, we would provide a dividend per share growth of 30 % to 34% in 2016 vs 2015."

Outlook beyond 2016

In addition, considering Abengoa's current portfolio of assets in operation and construction, which are expected to generate cash available for distribution in the range of $310 to $360 million, and future potential opportunities, we expect to deliver a yearly dividend per share growth in the range of 12 % to 15 %. This means that mid-term dividend growth per share from our 2015 IPO target of $1.36 would be higher than 20 % per year.

Details of the Results Presentation

Abengoa Yield is hosting a presentation to investors and analysts today May 11th at 8:30 a.m. EST at the Westin New York at Times Square. Santiago Seage, CEO, and Eduard Soler, EVP and CFO, will review the first quarter 2015 results as well as the acquisition announced and the updates in guidance. The event will start with a breakfast at 8:00 a.m. EST.

Additionally, a live webcast of the event, including Q&A session, will be available on Abengoa Yield's corporate website starting at 8:30 a.m. Those accessing the webcast should visit the website at least 15 minutes prior to the event in order to register and download any necessary audio software. Participants may also dial +1 855 228 3874 (US) / +44 (0) 2034 262 822 (UK) to listen to the event.

About Abengoa Yield

Abengoa Yield is a total return company that owns a diversified portfolio of contracted renewable energy, power generation, electric transmission and water assets in North America, South America and EMEA. We focus on providing a predictable and growing quarterly dividend or yield to our shareholders (www.abengoayield.com).

Forward-Looking Statements

This news release contains forward-looking statements. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this prospectus, including, without limitation, those regarding our future financial position and results of operations, our strategy, plans, objectives, goals and targets, future developments in the markets in which we operate or are seeking to operate or anticipated regulatory changes in the markets in which we operate or intend to operate. In some cases, you can identify forward-looking statements by terminology such as "aim," "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "guidance," "intend," "is likely to," "may," "plan," "potential," "predict," "projected," "should" or "will" or the negative of such terms or other similar expressions or terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Our actual results of operations, financial condition and the development of events may differ materially from (and be more negative than) those made in, or suggested by, the forward-looking statements.

Factors that could cause actual results to differ materially from those contemplated above include, among others, general economic conditions, changes in government expenditure budgets, challenges in making acquisitions, changes in public support of renewable energy, weather conditions, legal challenges to regulations, changes to subsidies and incentives that support renewable energy sources, government regulations, the volatility of energy and fuel prices, counterparty credit risk, failure of customers to perform under contracts, our ability to enter into new contracts as existing contracts expire, reliance on third-party contractors and suppliers, failure of newly constructed assets to perform as expected, failure to receive dividends from assets, changes in our tax position, unanticipated outages at our generation facilities, the condition of capital markets generally, our ability to access capital markets, adverse results in current and future litigation and our ability to maintain and grow our quarterly dividends. Furthermore, any dividends are subject to available capital, market conditions, and compliance with associated laws and regulations. These factors should be considered in connection with information regarding risks and uncertainties that may affect Abengoa Yield's future results included in Abengoa Yield's filings with the U.S. Securities and Exchange Commission at www.sec.gov.

Abengoa Yield undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or developments or otherwise.

The ordinary shares sold in the private placement were offered and sold pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the Securities Act). Such ordinary shares have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell, or a solicitation of an offer to purchase, the ordinary shares in any jurisdiction in which such offer or solicitation would be unlawful.

1 Current ratings provided by Standard & Poors, Moody's and Fitch credit rating agencies.

CONTACT: EVP and Chief Financial Officer Eduard Soler E-mail: ir@abengoayield.com Communication Department Patricia Malo de Molina Tel: +34 954 93 71 11 E-mail: communication@abengoa.com Investor Relations Leire Perez Tel: +44 20 7098 4384 E-mail: ir@abengoayield.comSource:Abengoa Yield