Atlantica Sustainable Infrastructure plc (AY): history, ownership, mission, how it works & makes money

A Brief History of Atlantica Sustainable Infrastructure plc (AY)

Formation and Early Years

Atlantica Sustainable Infrastructure plc was founded in 2012 under the name Atlantica Yield plc. The company was established with the intention of acquiring and managing a portfolio of sustainable infrastructure assets, focusing primarily on renewable energy and essential services.

Initial Public Offering

Atlantica went public on the NASDAQ stock exchange in 2014, offering approximately $250 million in its initial public offering (IPO). The shares were priced at $20.00 each, allowing the company to raise significant capital for its expansion.

Acquisitions and Growth

In 2015, Atlantica made a notable acquisition of a 49% stake in the Solana Generating Station in Arizona, a solar thermal power plant. This acquisition marked a key step in expanding its renewable energy portfolio.

By 2017, Atlantica had diversified its assets, which included wind farms, solar plants, and other renewable infrastructures, with an aggregate capacity of over 1,500 MW.

Strategic Rebranding

In 2018, the company rebranded itself to Atlantica Sustainable Infrastructure plc to better reflect its mission and investment focus on sustainable solutions and services.

Financial Performance

As of 2022, Atlantica reported total revenue of $566 million and operating income of $366 million. The company recorded net income attributable to the shareholders of approximately $117 million.

Recent Developments

In 2023, Atlantica announced plans to invest around $500 million in new renewable energy projects, aiming to enhance its portfolio by increasing its capacity by an additional 300 MW over the next 2 years.

Current Portfolio Overview

As of 2023, Atlantica manages a diverse portfolio, including:

• Wind Farms
• Solar Power Plants
• Water Infrastructure
• Other Renewable Assets

Share Performance

As of October 2023, Atlantica shares are trading at approximately $21.50, with a market capitalization of around $1.5 billion.

Future Outlook

Looking ahead, the company plans to expand its asset base and aims for a compound annual growth rate (CAGR) of 7-10% over the next five years, focusing on sustainability and renewable energy advancements.

Conclusion of Historical Insights

Atlantica Sustainable Infrastructure plc continues to play a significant role in the renewable energy sector, with a commitment to sustainable practices and infrastructure development.

A Who Owns Atlantica Sustainable Infrastructure plc (AY)

Major Shareholders

As of the latest reports, the ownership of Atlantica Sustainable Infrastructure plc (AY) is primarily distributed among institutional and individual investors. The following table outlines the significant shareholders and their respective ownership percentages:

Recent Stock Performance

As of October 2023, Atlantica Sustainable Infrastructure plc's stock (AY) has shown a steady performance, reflecting investor confidence. The following statistics illustrate the stock's performance over the past year:

Executive Leadership

The executive leadership team plays a crucial role in the company's strategic direction. Key members include:

• Álvaro Romero - CEO
• David D. G. McDonald - CFO
• Alberto García - COO
• Laura G. González - CCO

Institutional Ownership Trends

Institutional ownership has fluctuated over the years, indicating varying levels of confidence from professional investment firms. As of 2023, institutional ownership has reached approximately 65%.

Geographical Distribution of Owners

The geographical distribution of Atlantica's shareholders is diverse. The following table outlines the percentages based on region:

Financial Overview

Financial metrics as of the latest quarterly report highlight the company's growth and sustainability focus:

Recent Transactions

Recent ownership transactions have involved significant shares being traded among institutional investors, contributing to market volatility:

• BlackRock has increased its stake from 10% to 12.5% in the last year.
• Vanguard has maintained its stake around 10.2% with minor adjustments.
• ClearBridge Investments has reduced its holdings slightly over the same period.

Atlantica Sustainable Infrastructure plc (AY) Mission Statement

Overview

Atlantica Sustainable Infrastructure plc (AY) is committed to sustainable infrastructure investments that provide renewable energy and essential services worldwide. The company's mission is to deliver long-term value while positively impacting the environment and society.

Core Values

• Sustainability: Committed to environmental stewardship and sustainable practices.
• Integrity: Operating with transparency and ethical principles.
• Innovation: Investing in cutting-edge technologies that drive efficiency and sustainability.
• Partnership: Collaborating with stakeholders to achieve common goals.

Financial Performance

As of the latest financial report, Atlantica Sustainable Infrastructure's key financial figures include:

Strategic Objectives

Atlantica's strategic objectives focus on expanding its portfolio of sustainable infrastructure assets through:

• Acquiring renewable energy projects that align with its mission.
• Enhancing operational efficiency to improve asset performance.
• Fostering community engagement and support for projects.
• Implementing innovative technologies to reduce environmental impact.

Key Projects

The company operates several notable projects across various sectors, contributing to its mission of sustainability. Some key projects include:

Sustainability Commitment

Atlantica's commitment to sustainability includes measurable targets, such as:

• Reducing greenhouse gas emissions by 30% by 2030.
• Increasing renewable energy generation capacity by 20% annually.
• Implementing sustainable practices in all operational areas.

Future Outlook

The outlook for Atlantica includes:

• Expansion into new markets with high renewable energy potential.
• Investment in innovative technologies to enhance project performance.
• Strengthened partnerships with governments and private sectors.

How Atlantica Sustainable Infrastructure plc (AY) Works

Overview of Atlantica Sustainable Infrastructure

Atlantica Sustainable Infrastructure plc operates as an infrastructure investment company focused on sustainable assets. Its business model revolves around managing and investing in a portfolio of renewable energy and efficient infrastructure projects.

Investment Portfolio

The company primarily concentrates on renewable energy plants, including solar, wind, and hydroelectric facilities. As of 2023, Atlantica has a total gross installed capacity of approximately 2,195 MW. The breakdown includes:

• Solar: 1,117 MW
• Wind: 1,058 MW
• Hydro: 20 MW

Financial Performance

As of the third quarter of 2023, Atlantica reported a revenue of approximately $435 million, with a net income of about $90 million. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at $350 million, indicating a strong operational performance.

Debt and Financing Structure

Atlantica maintains a healthy capital structure. As of September 30, 2023, total debt was approximately $2.5 billion, while cash and cash equivalents were reported at $200 million. The company has a debt-to-EBITDA ratio of 7.14, demonstrating manageable leverage.

Geographical Distribution of Assets

Atlantica’s assets are spread across several countries, showcasing its international reach. The geographical distribution as of 2023 includes:

Regulatory Environment

Atlantica operates in a complex regulatory landscape, heavily influenced by government policies supporting renewable energy. In many jurisdictions, favorable policies include:

• Tax incentives for renewable energy investments
• Feed-in tariffs guaranteeing fixed payments
• Renewable Portfolio Standards mandating a certain percentage of energy to come from renewable sources

Dividends and Shareholder Returns

Atlantica has a history of providing consistent dividends to its shareholders. In 2023, the dividend yield was approximately 5.2%, distributing around $1.10 per share annually. The company focuses on returning value to shareholders while maintaining investment in sustainable projects.

Future Projects and Growth Strategy

The company plans to expand its portfolio by entering new markets and investing in emerging technologies, such as energy storage and green hydrogen. Projected growth includes:

• Investment of approximately $600 million in new projects over the next two years
• Targeting an increase in total capacity to over 3,000 MW by 2025

Conclusion on Operating Model

Atlantica Sustainable Infrastructure operates on a model that emphasizes sustainability, financial performance, and shareholder returns while navigating a complex regulatory framework across diverse geographical markets.

How Atlantica Sustainable Infrastructure plc (AY) Makes Money

Revenue Streams

Atlantica Sustainable Infrastructure plc generates revenue through the following primary sources:

• Long-term contracts in energy generation
• Infrastructure services
• Market-based energy sales

Energy Generation

The company operates a diversified portfolio of renewable energy assets, including solar, wind, and hydropower facilities. As of 2022, Atlantica generated approximately $520 million in revenue from energy generation.

Breakdown by energy type:

Contracts and Agreements

Atlantica engages in long-term power purchase agreements (PPAs) that provide stable cash flows. As of 2023, approximately 90% of its revenue was secured through these contracts, allowing for predictable income streams.

Infrastructure Services

The company also derives revenue from operating infrastructure assets, specifically in water and waste management sectors. In 2022, revenue from infrastructure services was approximately $150 million.

Financial Performance

As of Q2 2023, Atlantica reported the following key financial metrics:

Growth Strategy

Atlantica aims to expand its asset base and enhance revenue by:

• Investing in new renewable energy projects
• Expanding geographic reach, particularly in emerging markets
• Acquiring operational infrastructure assets

Market Trends

As of 2023, the global renewable energy market is projected to grow at a CAGR of 8.4% from 2021 to 2028, providing a favorable environment for Atlantica's growth initiatives. The company's market cap was approximately $1.1 billion as of the end of 2022.