Alternus Clean Energy, Inc. Reports FY 2023 Financial Results
- Revenue increased by 17.5% and gross profit by 25% YoY for FY 2023.
- Debt reduced by $77 million, with 165 GWH of clean energy produced in 2023.
- Net loss of $69.5 million due to one-time events, including divestment costs.
- Acquisition of solar PV projects in the US and Spain for future revenue generation.
- Successful business combination with Clean Earth leading to Nasdaq listing under 'ALCE'.
- Net loss of $69.5 million in FY 2023.
- One-time events contributing to the net loss, including divestment costs.
- Debt reduction by $77 million may impact future financial flexibility.
- Revenue increase may not fully offset the net loss incurred in FY 2023.
Insights
Alternus Clean Energy, Inc.'s announcement of a 17.5% increase in revenue and a 25% increase in gross profit year-over-year, against a backdrop of a net loss of
The strategy of divestment in non-core markets like Poland and the Netherlands can be seen as a move to concentrate resources and efforts on markets with higher growth potential, such as the United States and select European countries. The pursuit of 'equity light' projects in the US is indicative of a trend in the renewable energy sector where companies are seeking to maximize returns while minimizing equity costs, which can be capital intensive. The secured pipeline in Italy and Spain, alongside acquisitions such as the 'Dancing Horse' project in Tennessee, reflect a focused geographical and sectoral expansion. The expected operational start dates and revenue from these projects reveal a clear timeline for growth and investment returns, which should be closely monitored for execution risks and potential deviations from projected financial outcomes.
Mergers and acquisitions are pivotal events for companies and their stakeholders. Alternus's successful merger with Clean Earth Acquisitions Corp and the subsequent Nasdaq listing not only signal a boost in credibility and potential liquidity for investors but also represent a strategic consolidation within the industry. This maneuver allows Alternus to leverage Clean Earth's assets while providing a platform for elevated market presence and increased access to capital. The merger's significance is amplified by the concurrent issuance of common stock, making AEG the largest shareholder, thereby intertwining the fortunes of both entities. It is imperative for investors to track how this expanded shareholder base influences corporate governance and strategy going forward. Additionally, the continuation of AEG as a separate legal entity and its listing on the Euronext Growth market in Oslo could provide insights into investor sentiment across different market regions.
• Revenue up by
• Gross profit up by
FORT MILL, S.C., April 15, 2024 (GLOBE NEWSWIRE) -- 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
Results Underpinned by a Diversified Portfolio of Assets
The table below summarises the Company’s portfolio of assets as of December 31, 2023.
| COUNTRY | MEGAWATTS INSTALLED | 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
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
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 | |
| Cost of Sales | (4.5) | (4.4) | (0.1) | |
| Gross Profit | 15.6 | 12.7 | 2.9 | |
| Gross Margin | ||||
| Selling and General Expenses | (11.2) | (5.7) | (5.5) | |
| EBITDA | 4.4 | 7.0 | (2.6) | - |
| Interest Charges | (18.6) | (10.3) | (8.3) | |
| Depreciation and amortization | (3.7) | (3.7) | – | |
| Total Other Expense | (35.8) | (11.6) | (24.2) | |
| 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
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
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 Energy
ir@alternusenergy.com
+1 (913) 815-1557
Alternus Media:
The Blueshirt Group
alternus@blueshirtgroup.com
+1 (323) 240-5796
| ALTERNUS CLEAN ENERGY, INC., AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except share and per share data) | ||||||||
| As of December 31, | As of December 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, | – | – | ||||||
| Common Stock, | 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 | ) | ||
FAQ
What was the percentage increase in revenue for Alternus Clean Energy, Inc. in FY 2023?
What was the net loss for Alternus Clean Energy, Inc. in FY 2023?
What was the reason behind the net loss for Alternus Clean Energy, Inc. in FY 2023?
What acquisitions did Alternus Clean Energy, Inc. announce in FY 2023?
What was the result of the business combination between Alternus Clean Energy, Inc. and Clean Earth?
What was the total debt reduction for Alternus Clean Energy, Inc. in FY 2023?
What was the total clean energy production for Alternus Clean Energy, Inc. in 2023?
What was the focus of Alternus Clean Energy, Inc.'s strategic realignment in 2023?
What is the ticker symbol for Alternus Clean Energy, Inc. on Nasdaq?
What is the goal of Alternus Clean Energy, Inc. in terms of operational assets within five years?
