Atlantica Yield plc (NASDAQ:AY) Q2 2019 Earnings Conference Call Transcript
Aug 07, 2019 • 08:30 am ET
Welcome to the Atlantica's Second Quarter 2019 Financial Results Conference Call. Atlantica is a sustainable total return infrastructure company that owns a diversified portfolio of contracted renewable energy, power generation, electric transmission and water assets in North and South America, and certain markets in EMEA. Just a reminder that this call is being webcast live on the Internet and a replay of the call will be available on -- at the Atlantica Yield corporate website.
Atlantica will be making forward-looking statements during this call based on current expectations and assumptions, which are subject to risk and uncertainties. Actual results could differ materially from the forward-looking statements if any of our key assumptions are incorrect or because of other factors discussed in today's earnings presentation or the comments made during this conference call in the Risk Factors section at the accompanying presentation on our latest reports and filings with the Securities and Exchange Commission, each of which can be found on our website. Atlantica Yield does not undertake any duty to update any forward-looking statements.
Joining us for today's conference call is Atlantica's CEO, Santiago Seage, and CFO, Francisco Martinez-Davis. As usual, at the end of the conference call, we will open the lines for the Q&A session. I will now pass you over to Mr. Seage. Please, sir, go ahead.
Thank you very much. Good morning, and thank you for joining us for our second quarter conference call. If we start on Page 3, we can see that we have continued showing a strong performance in the first half of 2019, where we have delivered growth in terms of revenues and further adjusted EBITDA, including unconsolidated affiliates on a like-for-like basis. Cash available for distribution, CAFD, also increased in the first half of 2019.
In the second quarter, we continued delivering on several strategic initiatives within our existing portfolio. In first place, we have internalized operation and maintenance services in our US solar assets. This initiative should deliver immediate additional CAFD even before considering any efficiency or cost savings. Second, we successfully refinanced the project debt of our assets in Chile. As a result, we expect to increase the CAFD we obtain every year from these assets starting in 2020. In third place, we signed our first ESG-linked financial guarantee line that will help us to progressively release restricted cash in some of our projects, as discussed last quarter.
Finally, we recently signed a $125 million limit increase for our revolving credit facility. Now the limit is $425 million, providing us with significant liquidity to continue growing accretively. Finally, our Board of Directors has declared a quarterly dividend of $0.40 per share, representing an increase of 18% compared with the second quarter of 2018. The Board and management remain fully committed to dividend growth.
On Slide 5, we present our key financials. Revenues reached in the first half of the year $505 million, a 2% decrease, primarily due to currency translation effects. On a constant currency basis, revenues increased by 3%