There has been a six-fold increase from investment and wealth managers signing up to take a financial planning qualification.

A financial planning trainer has told Money Marketing that she has seen a big jump in the number of both doing the level 7 diploma in advanced financial planning.

This is associated with the Chartered Institute for Securities & Investment (CISI).

Over the past two years Lockie Consultants director Jacqueline Lockie has seen the number of investment and wealth managers doing level 7 rise from 5% to 30%.

Lockie said: “These two worlds [planners and investment managers] have been slowly coming together over the past 10 years”.

The reason why investment and wealth managers want to pursue a planning training course is because the profession offers an individual a more personal relationship with a client, Lockie added.

However, this can be worrying for the adviser community, as an investment manager tends to have more capital behind them.

So, this combined with a planning qualification can potentially be harmful and provide strong competition to other advisers.

She has seen an increase in demand for the financial advice market. Lockie used to be a financial planner herself for eight years.

Previously, she was CISI head of financial planning and the Association of Investment Companies (AIC) head of training.

The recently implemented Consumer Duty also resulted in a four-fold increase in the amount of people taking the level 7 course in May 2023.

The Duty was very concerning to wealth managers, which helped to drive them to take the level 7 course, Lockie said.

In general, both investment and wealth managers wanted to be prepared as much as possible for the Consumer Duty, and taking the level 7 financial planning was part of that.

Lockie also works with RQ Ratings, an organisation that aims to increase collaboration for accountants, solicitors and independent financial advisers.

Lockie said that “sometimes lawyers and accountants do not speak the same language as advisers”.

RQ Ratings would do the due diligence for an accountant looking to work with an adviser or vice versa.

Additionally, Lockie said: “Everyone is quite territorial about their client, so they want to know who they can trust”.

Lockie Consultants was set up in February 2021.

The Emergency Board is comprised of Governor Philip B. Scott, Chair; Senator Jane Kitchel; Senator Ann Cummings; Representative Diane Lanpher; and Representative Emilie Kornheiser. VermontBiz photo, July 31, 2023, Governor's Ceremonial Office, State House.

Vermont Business Magazine Emergency grant funding will be available to assist Vermont residents, including homeowners and renters, who were impacted by the July 2023 flood disaster, as declared in Executive Order No. 03-23, and need to replace flood-damaged and flood-destroyed appliances and equipment. Current FEMA reports estimate over 4,000 residences were impacted. This emergency funding will support addressing this urgent financial need. Efficiency Vermont will utilize existing, cost-effective programs, supply chain partners, and delivery mechanisms to ensure supply availability.

Program Amount: Up to $10,000,000

Grant Program: Applications will be considered, and grants will be awarded on a rolling basis and until all funds have been granted. Qualifying replacement appliances and equipment include those on Efficiency Vermont’s Qualifying Products List and comparably efficient equipment. Income qualifications are based on Vermont’s Area Median Income (AMI) in keeping with Efficiency Vermont’s standard practices. Priority will be given to Vermonters with income at or below 120% AMI. For renters, awards will be based on the renter’s income, not the landlord’s income. For a multi-unit dwelling, the average income of all renters in the building may be used to determine income for appliances and equipment that affect more than one unit.

Awards shall not exceed $10,000 per individual. Assistance will not be available for items reimbursed by another source, including insurance payouts and FEMA awards. Applicants will be required to verify income, proof of damage with damage assessments from FEMA and/or insurance companies and other documents as requested by the grantor.

Grant award decisions can be stacked with Distribution Utility Tier III and Efficiency Utility programs and incentives, federal tax incentives, Inflation Reduction Act incentives and state-controlled programs; ARPA-funded weatherization, heat pump and hot water heater switch-and save programs, electric panel upgrades, and flexible load management; FEMA assistance, and other grant awards or philanthropic dollars.

Public Service Department Commissioner June Tierney said at the Emergency Board meeting at the State House on July 31 that the program was developed over the previous weekend “with many cooks in the kitchen.”

The Emergency Board is comprised of Governor Philip B. Scott, Chair; Senator Jane Kitchel; Senator Ann Cummings; Representative Diane Lanpher; and Representative Emilie Kornheiser.

Tierney said it’s an emergency financial assistance program for flood impact and Vermonters the purpose of the program is emergency grant funding that will be available to assist Vermont residents including homeowners and renters who were impacted by the July 23rd 2023 flood disaster and as declared in the executive order 03-23 and these folks need to replace flood-damaged and flood-destroyed appliances and equipment.

FEMA reports estimate that over 4,000 residences were impacted.

“We don't know exactly how many of those are necessarily low or middle income but that is the target audience for this aid and the emergency funding would support addressing their needs.”

Efficiency Vermont would be deployed to utilize existing cost-effective programs supply chain partners and delivery mechanisms to ensure supply availability.

The Department will direct the grant funding to Efficiency Vermont in consultation with many other entities that are habitually active in the space anyway such as the Office of Economic Opportunity and the Vermont Housing Financing Authority.

The PSD will work with these stakeholders to essentially try to get affordable housing off of fossil fuel and to introduce efficiency measures instead.

Tierney said the grant program would be capped at $10 million that would be transferred from $35 million that was appropriated to the department for weatherization and would not to exceed $10,000 per individual. There would be income qualifications they would be using based on Vermont's area median income in keeping with practices that already exist at Efficiency Vermont and priority would be given to folks with income below 120 percent AMI.

They would also make sure the funds are spread out around the state to ensure regional distribution equity, meaning not any one community gets all the money because they have the most applications that get through the door first.

The electric utilities would also be involved in this process with their energy efficiency programs.

Also, customers would be allowed to stack the awards, with, say, existing federal tax incentives and inflation reduction act incentives and any other state control program.

“We all know there's a terrible, terrible need out there to weatherize buildings and the judgment that we can take 10 from 35 million is a solid judgment. I would be hesitating if we go much farther because any contractor will tell you when you're trying to address both efficiency and decarbonization, starting with the envelope of the building is the way to go and that is what weatherization is all about so that's where we are in the program development.”

All of the amounts disclosed in this press release are in U.S. dollars unless otherwisenoted

TEL AVIV, Israel, Aug. 09, 2023 (GLOBE NEWSWIRE) -- Enlight Renewable Energy Ltd. (NASDAQ: ENLT, TASE: ENLT) today reported financial results for the second quarter ended June 30, 2023.

The Company’s quarterly earnings materials and a link to the earnings webcast, which will be held today at 8:00 AM ET, may be found on the investor relations section of Enlight’s website at https://enlightenergy.co.il/data/financial-reports/

Second Quarter 2023: Financial Highlights

• Revenue of $53m, up 32% year over year.
• Net Income of $22m, transitioning from a $1m loss last year.
• Adjusted EBITDA* of $42m, up 58% year over year.
• Cash flow from operation of $39m, up 95% year over year.

First Half 2023: Financial Highlights

• Revenue of $124m, up 65% year over year.
• Net income of $56m, up 600% year over year
• Adjusted EBITDA* of $95m, up 86% year over year
• Cash flow from operation of $95m, up 181% year over year.

“We delivered rapid growth and increased profitability in the second quarter of 2023, driven primarily by 700 MW of new operational projects. While quarterly revenue grew at a rate of 32% year over year, which was lower than expected, driven by lower wind production and electricity prices at Project Gecama in Spain, Adjusted EBITDA growth remained as expected at 58% thanks to lower O&M costs in Spain and better results across other projects”, said Gilad Yavetz, CEO of Enlight Renewable Energy.

“We made significant progress this quarter across our Mature Portfolio, which provides us with a strong indication of our ability to deliver consistent rapid growth.We reached commercial operation on150 MWof generation and 40 MWh of energy storage, including our first ever storage project,while securing critical milestones on over 2 GW of MatureProjects, including the addition of a new flagship project in the Western U.S to our Mature Portfolio.We believe thatthe progress we have made further de-risks our plan to reach 4.6 GW and 3.6 GWh of operational projects by the end 2025.”

“In addition, we continued to deliver projects with above-market returns. During the quarter, we secured 250 MW of power purchase agreement (“PPA”) amendments with an average price increase of 87% and signed 280 MW and 1,680 MWh of new PPAs at attractive prices. Project Atrisco was also recognized as an energy community under the Inflation Reduction Act (“IRA”), further increasing the projected returns for our first flagship project in the United States. We believe our proven record of delivering both rapid growth and above-market returns puts us in a prime position to capture the massive opportunity we see ahead.”

Second Quarter: Further Highlights

• Delivering on project conversion: 150 MW and 40 MWh reached commercial operation; 94 MW commenced construction; 330 MW and 840 MWh added to the Mature Portfolio, including a new flagship solar and storage project in the Western U.S.
• Focusing on project economics: 280 MW and 1,680 MWh of new PPAs signed at attractive pricing. Amended 250MW of PPAs at an average price increaseof 87%.
• 4.3 GW of U.S. portfolio may benefit from energy community tax credit adder (+17% from Q1 estimate, post assessment of brownfield locations).
• Project Atrisco expected to benefit from energy community adder, increasing projected returns; financial close expected by the end of September 2023. Project COD on track for Q2 2024 COD.
• Secured $170m of corporate revolving credit facilities from several Israeli banks (currently undrawn), further enhancing the Company’s financial flexibility.
• 65% of revenues in USD and EUR, driven by ongoing transition to large scale developed markets in Europe and North America. While we continue to invest in Israel in the positive backdrop of deregulation of the local electricity market, Israel’s share of our global mix is expected to shrink over time.
• 2023 Guidance Updates: due to lower than expected wind production and electricity prices at Project Gecama in Spain, we are adjusting our revenue guidance from $290-300m to $265-275m. However, based on significantly lower than expected windfall taxes (O&M costs) in Spain and compensation recognized from Siemens Gamesa at Björnberget in connection with delays in reaching full production, we are reaffirming our Adjusted EBITDA guidance at $188-198m.

Overview of Financial and Operating Results: Revenue

In the second quarter of 2023, the Company’s revenues increased to $53m, up from $40m last year, a growth rate of 32% year over year. Growth was mainly driven by the revenue contribution of new operational projects, as well as the inflation indexation embedded in PPAs for already operational projects.

Since the second quarter of last year, 700MW of projects started selling electricity, includingGecama andBjörnberget. These projects collectively contributed $11m of revenue during the second quarter of 2023.

The Company also benefited from inflation indexation embedded in its PPAs, which contributed an additional $3m of revenue during the quarter. This reflected an average indexation of 7.2% across 592 MW of PPAs for projects that have been operational for a full year.

With respect to FX, the impact of a strengthening Euro was offset by a weaker Shekel, with a cumulative negative impactof $1 million.

Financial performance was well-balanced between Western Europe, Central-Eastern Europe (“CEE”) and Israel, with 61% of revenues in the second quarter of 2023 denominated in Euros, 5% in another European currency and 30% denominated in Israeli shekel. In the second half of 2023, revenue is expected to include a substantial contribution denominated in U.S. dollars, following the COD of Apex Solar, the Company’s first project to reach commercial operations in the United States.

In addition to the above, the Company sold $5m of electricity in projects treated as financial assets in the second quarter.Under IFRS this revenue is accounted for as financing income or other non-P&L metrics.

Net Income

In the second quarter of 2023, the Company’s net income increased to $22m, transitioning from a $1m loss last year. $12m of the increase was driven by new projects, including $6m from Björnberget, largely reflecting the after-tax impact of the compensation recognized from Siemens Gamesa.

With respect to the accurate announcement by Siemens Gamesa on issues with its onshore wind turbines, we do not expect either a short or long term impact to Project Björnberget. During the second quarter, we recognized compensatory payments from Siemens Gamesa under our agreement due to delays in reaching full production. As of today, 56 of 60 turbines are operational. COD under the PPA has been declared and Björnberget is expected to reach full production in the coming weeks.

The residual growth in net income of $11m was driven by a reduced expectation of earnout payments to be incurred for the acquisition of Clenera for early stage projects not in our Mature Portfolio ($5m) and interest income on deposits as well as foreign exchange impacts (strengthening USD relative to the NIS) on our cash and cash equivalents ($6m).

Adjusted EBITDA*

In the second quarter of 2023, the Company’s Adjusted EBITDA grew by 58% to $42m compared to $26m for the same period in 2022.

The increase was driven by the same factors which affected our revenue increase in the same period, as well as $8m of compensation recognized from Siemens Gamesa due to the delay in reaching full production at Project Björnberget as described above, offset by a $2m increase in overhead as the team scales to accommodate rapid growth.

Portfolio Overview1

Key changes to the Company’s projects portfolio during the second quarter of 2023:

• Operational portfolio grew by 150 MW and 40 MWh, including Apex Solar, AC/DC, and one project which reached COD within the Solar & Storage cluster in Israel.

• Commenced construction on94MWinSerbia(Project Pupin, adjacent to Project Blacksmith).
• Mature Project portfolio grew by 330 MW and 840 MWh, including Roadrunner, our new flagship solar and storage project in the Western U.S. with a signed PPA and interconnection agreement.

Portfolio Overview

1 As of August 09, 2023 (“Approval Date”).

United States

The Company delivered significant progress on its large U.S. portfolio during the second quarter of 2023.

The Apex Solar project, sized at 105MWdc and located in southwestern Montana, achieved mechanical completion and began operating in June. After optimization and tuning, commercial operations were achieved in July. The milestone is a significant one for the group as it represents Enlight’s first project to reach commercial operations in the United States.

In New Mexico, our 364 MW / 1,200 MWh Atrisco Solar project is advancing steadily. The project’s battery provider completed work to finalize factory qualification and has initialized battery pack shipments required for container deliveries, which are set to begin in the fourth quarter of 2023. Site work is on schedule and commercial operation is on track for the end of the second quarter 2024. Moreover, the Company confirmed that Atrisco qualifies for a 10% tax credit adder on both the solar and storage portions of the project. The adder is based on the project site’s brownfield status and subsequent qualification for energy community classification. Project finance definitive agreements are advancing with financial close now expected in September of 2023.

The Company is also progressing on the CO Bar project, located in Arizona. At 1.2 GW solar and 824 MWh storage, CO Bar is the first of the Company’s gigawatt sized projects to mature. In the second quarter, we successfully contracted the remaining 258 MW and 824 MWh of the project. CO Bar is now fully contracted with two leading Arizona utilities (Salt River Project and Arizona Public Service), under 20 year busbar PPAs. There is also potential to expand the storage part of the project in the future from 824 MWh today to 4 GWh given the size of our interconnection position. On the development front, the CO Bar project has primary land control and permitting in place. The system impact study (SIS) for the interconnection is complete, and the facilities study is expected in Q4 of 2023. CO Bar is expected to start construction in the fourth quarter of 2023 and achieve COD in phases through 2025. The project stands to benefit from the IRA, including the production tax credit (PTC) and the possibility of a domestic content adder on the storage.

Moreover, the Company added 278 MW and 800 MWh to its Mature Portfolio in the U.S., driven by the addition of Roadrunner,a flagship combined solar and storage project in Arizona.The project totaling 250 MW and 800 MWh is contracted to AEPCO under a 20 year busbar PPA. COD is expected in H1 2026. The projecthas site control, a signed PPA and a signed interconnection agreement. Final permitting is required, after which construction is expected to commence. The project highlights our continued market leadership in the West and the underlying quality of our project pipeline.  

Finally, the Company’s advanced portfolio and market specific knowledge has enabled it to avoid the increasing interconnection queue congestion across the United States over the quarter. In the second quarter, Rustic Hills secured its system impact study, a significant milestone for the project. The Company’s entire Mature Portfolio and Advanced Development Portfolio in the U.S. is now past the system impact study phase – a critical component of the interconnection study process. Given this advantage, the Company believes it is well positioned to continue and even potentially accelerate its growth in the United States.

On supply chain, the Company’s diversified sourcing strategy has reliably satisfied module and other equipment supply requirements in the United States. The Company has the right to purchase up to 2 GW of modules from India with delivery through 2025. We also have access to additional supply from Southeast Asia. Our battery cell source is now qualified in international factories, and we are seeing strong progress in reaching our goal to have qualified domestic supply for late 2024 deliveries and beyond. Our procurement strength is proving to be a source of strategic advantage in negotiating project contracts with utility offtake and demonstrating to financing parties we can hold construction schedules.

Europe

The Company made substantial progress on its European portfolio during the quarter. The Company reached commercial operation on 26 MW in Hungary. This is our second project to reach commercial operation in Hungary with another 60 MW currently under construction. In addition, during the quarter the Company commenced construction on project Pupin, a 94 MW wind project in Serbia. Pupin is located adjacent to our existing operational asset in Serbia, Project Blacksmith, leveraging the same point of interconnection under our land and expand strategy.

On the development front, Gecama Solar (Spain), a 250 MW solar and 200 MWh storage project, is approaching the start of construction. The Company believes the project is close to securing its environmental permit, which would be the final major development milestone. Construction is on schedule to commence by the end of 2023 with COD expected by year end 2024.

Within the Company’s operational portfolio in Europe, wind speeds during the second quarter were lower than expected across Spain, impacting Project Gecama (Spain). In addition, at Project Gecama, merchant pricing was lower than expected driven by falling natural gas prices. This was offset by significantly lower than expected windfall taxes (O&M costs). The windfall tax was implemented by the Spanish government to reduce the impact of high electricity prices on consumers, by taxing renewable generators. The windfall tax moves in tandem with natural gas prices. During the second quarter of 2023, Gecama (Spain) sold electricity at an average price of EUR 65 per MWh, of which 65% was hedged at EUR 58 per MWh with the remainder sold on merchant basis at EUR 79 per MWh. Windfall taxes were EUR 4 per MWh. While merchant prices were lower than expected in the second quarter, merchant prices in Spain remain high through 2024. During the second quarter, the Company signed hedges comprising 22% of production at an average price of EUR 97 per MWh for 2024 delivery.

Israel

In the second quarter, Genesis Wind, the largest renewable energy project in Israel, totaling 207 MWwas connectedto the grid. Full COD is expected by the end of the third quarter 2023.

The Company continues to progress construction on Solar + Storage project clusters, totaling 248 MW and 474 MWh of storage. During the second quarter 23 MW and 40 MWh reached commercial operation. An additional 67 MW and 115 MWh is expected to reach commercial operation before the end of 2023, with the remainder of the cluster expected to be commercialized by the end of the first half of 2024.

The Company made significant progress during the quarter on securing offtake for the Solar + Storage projects. Corporate PPAs were signed with leading multinationals including Amdocs, and SodaStream (subsidiary of PepsiCo) totaling 30 MW and 60 MWh, with negotiations ongoing with several additional offtakers. As a result of the deregulation of the electricity market in Israel, we are observing significant corporate demand for renewable energy, which has increased our PPA prices and the returns we expect to generate from our future projects.

Post-quarter end, in July 2023, the Company sold two small projects in Israel totaling 25 MW at a valuation of $465,000 per MW. This is expected to contribute about $6m of net proceeds in the third quarter.

Balance Sheet

The Company benefits from a strong and diversified liquidity position, with 84% of cash and cash equivalents held in U.S. dollars or Euros, with minimal exposure to the Israeli shekel.

* Securities, largely government fixed income securities

The Company secured $170m of revolving credit facilities from numerous Israeli banks. The revolving credit facilities, which are undrawn, demonstrate our financial strength and provide additional flexibility to the Company as it delivers on its Mature Project portfolio.

2023 Financial Outlook

Commenting on the outlook, Enlight Chief Financial Officer Nir Yehuda noted, “In light of lower merchant pricing and weaker wind speeds in Spain we have revised our revenue forecast for the year. This impact is expected to be offset at the Adjusted EBITDA level by lower O&M costs, as windfall tax costs in Spain have significantly decreased, driven by lower natural gas prices, coupled with compensation recognized from Siemens Gamesa for Project Björnberget. We are therefore pleased to affirm our Adjusted EBITDA guidance for 2023.”

Details of the 2023 outlook include:

• Revenue between $265m and $275m

• Adjusted EBITDA*reaffirmed between$188m and $198m

* The section titled “Non-IFRS Financial Measures” below contains a description of Adjusted EBITDA, a non-IFRS financial measure discussed in this press release. A reconciliation between Adjusted EBITDA and Net Income, its most directly comparable IFRS financial measure, is contained in the tables below. The Company is unable to provide a reconciliation of Adjusted EBITDA to Net Income on a forward-looking basis without unreasonable effort because items that impact this IFRS financial measure are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, forward-looking depreciation and amortization, share based compensation, other income, finance income, finance expenses, share of losses of equity accounted investees and taxes on income. Such information may have a significant, and potentially unpredictable, impact on the Company’s future financial results. We note that “Adjusted EBITDA” measures that we disclosed in previous filings in Israel were not comparable to “Adjusted EBITDA” disclosed in the release and in our future filings.

Conference Call Information

Enlight plans to hold its Second Quarter 2023 Conference Call and Webcast on Wednesday, August 09, 2023 at 8:00 a.m. ET to review its financial results and business outlook. Management will deliver prepared remarks followed by a question-and-answer session. Participants can join by conference call or webcast:

The press release with the financial results as well as the investor presentation materials will be accessible from the Company’s website prior to the conference call. Approximately one hour after completion of the live call, an archived version of the webcast will be available on the Company’s investor relations website at https://enlightenergy.co.il/info/investors/.

Supplemental Financial and Other Information

We intend to announce material information to the public through the Enlight investor relations website at https://enlightenergy.co.il/info/investors, SEC filings, press releases, public conference calls, and public webcasts. We use these channels to communicate with our investors, customers, and the public about our company, our offerings, and other issues. As such, we encourage investors, the media, and others to follow the channels listed above, and to review the information disclosed through such channels.

Any updates to the list of disclosure channels through which we will announce information will be posted on the investor relations page of our website.

Non-IFRS Financial Measures

This release presents Adjusted EBITDA, a financial metric, which is provided as a complement to the results provided in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). A reconciliation of the non-IFRS financial information to the most directly comparable IFRS financial measure is provided in the accompanying tables found at the end of this release.

We define Adjusted EBITDA as net income (loss) plus depreciation and amortization, share based compensation, finance expenses, taxes on income and share in losses of equity accounted investees and minus finance income and non-recurring other income. Non-recurring other income for the second quarter of 2023 included income recognized in relation to the reduction of earnout we expect to pay as part of the Clenera Acquisition. With respect to other expense (income), as part of Enlight’s strategy to accelerate growth and reduce the need for equity financing, the Company sells parts of, or entire, developed assets from time to time, and therefore includes realized gains and losses from these asset dispositions in Adjusted EBITDA. Our management believes Adjusted EBITDA is indicative of operational performance and ongoing profitability and uses Adjusted EBITDA to evaluate the operating performance and for planning and forecasting purposes.

Non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under IFRS. There are a number of limitations related to the use of non-IFRS financial measures versus comparable financial measures determined under IFRS. For example, other companies in our industry may calculate the non-IFRS financial measures that we use differently or may use other measures to evaluate their performance. All of these limitations could reduce the usefulness of our non-IFRS financial measures as analytical tools. Investors are encouraged to review the related IFRS financial measure, Net Income, and the reconciliations of Adjusted EBITDA provided below to Net Income and to not rely on any single financial measure to evaluate our business.

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding the Company’s business strategy and plans, capabilities of the Company’s project portfolio and achievement of operational objectives, market opportunity and potential growth, discussions with commercial counterparties and financing sources, progress of Company projects, including anticipated timing of related approvals and counterparty obligations in connection with production delays, the Company’s future financial results, expected impact from various regulatory developments, including the IRA, expectations regarding wind production, electricity prices and windfall taxes, and Revenue, EBITDA, and Adjusted EBITDA guidance, the expected timing of completion of our ongoing projects, and the Company’s anticipated cash requirements and financing plans, are forward-looking statements. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “target,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible,” “forecasts,” “aims” or the negative of these terms and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions.

These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our genuine results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our ability to site suitable land for, and otherwise source, renewable energy projects and to successfully develop and convert them into Operational Projects;availability of, and access to, interconnection facilities and transmission systems;our ability to obtain and maintain governmental and other regulatory approvals and permits, including environmental approvals and permits;construction delays, operational delays and supply chain disruptions leading to increased cost of materials required for the construction of our projects, as well as cost overruns and delays related to disputes with contractors;our suppliers’ ability and willingness to perform both existing and future obligations;competition from traditional and renewable energy companies in developing renewable energy projects;potential slowed demand for renewable energy projects and our ability to enter into new offtake contracts on acceptable terms and prices as current offtake contracts expire;offtakers’ ability to terminate contracts or seek other remedies resulting from failure of our projects to meet development, operational or performance benchmarks;various technical and operational challenges leading to unplanned outages, reduced output, interconnection or termination issues;the dependence of our production and revenue on suitable meteorological and environmental conditions, and our ability to accurately predict such conditions;our ability to enforce warranties provided by our counterparties in the event that our projects do not perform as expected;government curtailment, energy price caps and other government actions that restrict or reduce the profitability of renewable energy production;electricity price volatility at assets with merchant exposure, unusual weather conditions (including the effects of climate change, could adversely affect wind and solar conditions), catastrophic weather-related or other damage to facilities, unscheduled generation outages, maintenance or repairs, unanticipated changes to availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or electric transmission system constraints and the possibility that we may not have adequate insurance to cover losses as a result of such hazards;our dependence on certain operational projects for a substantial portion of our cash flows;our ability to continue to grow our portfolio of projects through successful acquisitions;changes and advances in technology that impair or eliminate the competitive advantage of our projects or upsets the expectations underlying investments in our technologies;our ability to effectively anticipate and manage cost inflation, interest rate risk, currency exchange fluctuations and other macroeconomic conditions that impact our business;our ability to retain and attract key personnel;our ability to manage legal and regulatory compliance and litigation risk across our global corporate structure;our ability to protect our business from, and manage the impact of, cyber-attacks, disruptions and security incidents, as well as acts of terrorism or war;changes to existing renewable energy industry policies and regulations that present technical, regulatory and economic barriers to renewable energy projects;the reduction, elimination or expiration of government incentives for, or regulations mandating the use of, renewable energy;our ability to effectively manage our supply chain and comply with applicable regulations with respect to international trade relations, tariffs, sanctions, export controls and anti-bribery and anti-corruption laws;our ability to effectively comply with Environmental Health and Safety and other laws and regulations and receive and maintain all necessary licenses, permits and authorizations;our performance of various obligations under the terms of our indebtedness (and the indebtedness of our subsidiaries that we guarantee) and our ability to continue to secure project financing on attractive terms for our projects;limitations on our management rights and operational flexibility due to our use of tax equity arrangements;potential claims and disagreements with partners, investors and other counterparties that could reduce our right to cash flows generated by our projects;our ability to comply with tax laws of various jurisdictions in which we currently operate as well as the tax laws in jurisdictions in which we intend to operate in the future;the unknown effect of the dual listing of our ordinary shares on the price of our ordinary shares;various risks related to our incorporation and location in Israel;the costs and requirements of being a public company, including the diversion of management’s attention with respect to such requirements; certain provisions in our Articles of Association and certain applicable regulations that may delay or prevent a change of control; and; and the other risk factors set forth in the section titled “Risk factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2022 filed with the Securities and Exchange Commission (the “SEC”)and our other documents filed with or furnished to the SEC.  

These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. You should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot ensure that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by applicable law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

About Enlight

Founded in 2008, Enlight develops, finances, constructs, owns, and operates utility-scale renewable energy projects. Enlight operates across the three largest renewable segments today: solar, wind and energy storage. A global platform, Enlight operates in the United States, Israel and 9 European countries. Enlight has been traded on the Tel Aviv Stock Exchange since 2010 (TASE: ENLT) and completed its US IPO (Nasdaq: ENLT) in 2023.

Appendix 1 – Financial information

Consolidated Statements of Income

Consolidated Statements of Financial Position as of

Consolidated Statements of Financial Position as of (Cont.)

Consolidated Statements of Cash Flows

Consolidated Statements of Cash Flows (Cont.)

Consolidated Statements of Cash Flows (Cont.)

Segmental Reporting

Segmental Reporting (cont.)

Segmental Reporting (cont.)

Segmental Reporting (cont.)

Appendix 2 - Reconciliations between Net Income to Adjusted EBITDA

Appendix 3 - Mature Projects: 4.6 GW and 3.6 GWh operational by 2025

Appendix 4 - Mature Projects information

a) Segment information: Operational projects

b) Operational Projects Further Detail

c) Projects under construction

d) Pre-Construction Projects (due to commence construction within 12 months of the Approval Date)

Appendix 5 – Corporate level (TopCo) debt

Appendix 6 – Functional Currency Conversion Rates:

The financial statements of each of the Company’s subsidiaries were prepared in the currency of the main economic environment in which it operates (hereinafter: the “Functional Currency”). For the purpose of consolidating the financial statements, results and financial position of each of the Group’s member companies are translated into the Israeli shekel (“NIS”), which is the Company’s Functional Currency. The Group’s consolidated financial statements are presented in U.S. dollars (“USD”).

FX Rates to USD:

Photos accompanying this announcement are available at:

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MCLEAN, Va., Aug. 14, 2023 /PRNewswire/ -- Arlington Asset Investment Corp. (NYSE: AAIC) (the "Company," "Arlington," "we," "us" or "our") today reported financial results for the quarter ended June 30, 2023.

Second Quarter 2023 Financial Highlights

• $6.64 per common share of book value, a 2.6% increase from prior quarter
• $0.15 per diluted common share of GAAP net income available to common shareholders
• $0.06 per diluted common share of non-GAAP earnings available for distribution
• 0.5 to 1 "at risk" leverage ratio as of June 30, 2023
• Entered into Agreement and Plan of Merger with Ellington Financial Inc. ("Ellington Financial")

Second Quarter Investment Portfolio

As of June 30, 2023, the Company's investment portfolio capital allocation was as follows (dollars in thousands):

MSR Related Investments

The Company is party to agreements with a licensed, U.S. government sponsored enterprise ("GSE") approved residential mortgage loan servicer that enable the Company to garner the economic return of an investment in a mortgage servicing right ("MSR") purchased by the mortgage servicing counterparty.  The arrangement allows the Company to participate in the economic benefits of investing in an MSR without holding the requisite licenses to purchase or hold MSRs directly.  Under the terms of the arrangement, the Company provides capital to the mortgage servicing counterparty to purchase MSRs directly and the Company, in turn, receives all the economic benefits of the MSRs less a fee payable to the counterparty. At the Company's request, the mortgage servicing counterparty may utilize leverage on the MSRs to which the Company's MSR financing receivables are referenced to finance the purchase of additional MSRs to increase potential returns to the Company.  These transactions are accounted for as financing receivables in the Company's consolidated financial statements. 

The Company's MSR financing receivable investments as of June 30, 2023 are summarized in the tables below (dollars in thousands):

As of June 30, 2023, the mortgage servicing counterparty had no draws outstanding under its credit facility collateralized by the MSRs to which the Company's MSR financing receivables are referenced.  The weighted average yield on the Company's MSR financing receivables was 13.79% for the second quarter of 2023 compared to 13.78% for the first quarter of 2023, and the genuine weighted-average constant prepayment rate ("CPR") for the MSRs underlying the Company's MSR financing receivables was 5.19% for the second quarter of 2023 compared to 3.44% for the first quarter of 2023.  As of June 30, 2023, the valuation multiple of the MSRs underlying the Company's MSR financing receivables, calculated as the underlying MSR price divided by the weighted-average servicing fee, was 5.58x.

Credit Investments

The Company's credit investments generally include mortgage loans secured by residential or commercial real property or MBS collateralized by residential or commercial mortgage loans or residential solar panel loans ("non-agency" MBS or ABS).  As of June 30, 2023, the Company's credit investment portfolio at fair value was comprised of the following (dollars in thousands):

As of June 30, 2023, the Company had $79.5 million in repurchase agreements outstanding with a weighted average rate of 5.84% and remaining weighted average maturity of 19 days secured by $88.7 million of non-agency MBS at fair value.  As of June 30, 2023, the Company had a $17.2 million repurchase agreement outstanding with a rate of 7.75% and remaining maturity of 115 days secured by a $26.0 million commercial mortgage loan at fair value. 

Agency MBS

The Company's agency MBS consist of residential mortgage pass-through certificates for which the principal and interest payments are guaranteed by a government sponsored enterprise, such as the Federal National Mortgage Association ("Fannie Mae") or the Federal Home Loan Mortgage Corporation ("Freddie Mac").  As of June 30, 2023, the Company's agency MBS investment portfolio was comprised of the following (dollars in thousands): 

As of June 30, 2023, the Company's specified agency MBS investment portfolio was comprised of the following (dollars in thousands):

The Company's weighted average yield on its specified agency MBS was 4.26% for the second quarter of 2023 compared to 4.23% for the first quarter of 2023, and the genuine weighted-average CPR for the Company's specified agency MBS was 4.58% for the second quarter of 2023 compared to 3.52% for the first quarter of 2023. 

As of June 30, 2023, the Company's net short TBA agency MBS investment portfolio was comprised of the following (dollars in thousands):

As of June 30, 2023, the Company had $403.2 million of repurchase agreements outstanding with a weighted average rate of 5.31% and remaining weighted average maturity of 13 days secured by an aggregate of $423.4 million of agency MBS at fair value.  The Company's weighted average cost of repurchase agreement funding secured by agency MBS was 5.14% during the second quarter of 2023 compared to 4.67% during the first quarter of 2023. 

The Company enters into various hedging transactions to mitigate the interest rate sensitivity of its cost borrowing and the value of its fixed-rate agency MBS and MSR financing receivables.  Under the terms of the Company's interest rate swap agreements, the Company pays or receives interest payments based on a fixed rate and pays or receives variable interest payments based upon the Secured Overnight Financing Rate ("SOFR").  As of June 30, 2023, the Company's interest swap agreements were comprised of the following (dollars in thousands):

The Company's weighted average net pay rate of its interest rate swap agreements was 0.80% during the second quarter of 2023 compared to 0.53% during the first quarter of 2023.  Under GAAP, the Company has not designated these transactions as hedging instruments for financial reporting purposes and, therefore, all gains and losses on its hedging instruments are recorded to line item "investment and derivative gains (losses), net" in the Company's financial statements. 

Other Second Quarter 2023 Financial Highlights

The Company's book value was $6.64 per common share as of June 30, 2023 compared to $6.47 per common share as of March 31, 2023.  Book value per common share is calculated as total equity less the preferred stock liquidation preference divided by common shares outstanding plus vested restricted stock units convertible into common stock less unvested restricted common stock.  The Company's fully diluted book value was $5.77 per common share as of June 30, 2023.  Fully diluted book value per share is calculated as total equity less the preferred stock liquidation preference divided by common shares outstanding, including unvested restricted common stock, plus vested restricted stock units convertible into common stock and performance-based restricted stock units expected to be earned and convertible into common stock upon the previously announced proposed sale of the Company to Ellington Financial. 

The Company's "at risk" leverage ratio was 0.5 to 1 as of June 30, 2023 compared to 0.4 to 1 as of March 31, 2023.  The Company's "at risk" leverage ratio is calculated as the sum of the Company's repurchase agreement financing, net payable or receivable for unsettled securities, net contractual price of TBA purchase and sale commitments and financing embedded in its MSR financing receivables less cash and cash equivalents compared to the Company's investable capital measured as the sum of the Company's shareholders' equity and long-term unsecured debt. 

Additional Information

The Company will make available additional quarterly information for the benefit of its shareholders through a supplemental presentation that will be available at the Company's website, www.arlingtonasset.com.  The presentation will be available on the Webcasts and Presentations section located under the Updates & Events tab of the Company's website. 

About the Company

Arlington Asset Investment Corp. (NYSE: AAIC) currently invests primarily in mortgage related assets and has elected to be taxed as a REIT.  The Company is headquartered in the Washington, D.C. metropolitan area.  For more information, please visit www.arlingtonasset.com.

Statements concerning interest rates, portfolio allocation, financing costs, portfolio hedging, prepayments, dividends, book value, utilization of loss carryforwards, any change in long-term tax structures (including any REIT election), use of equity raise proceeds and any other guidance on present or future periods constitute forward-looking statements that are subject to a number of factors, risks and uncertainties that might cause genuine results to differ materially from stated expectations or current circumstances.  These factors include, but are not limited to, inflation, changes in interest rates, increased costs of borrowing, decreased interest spreads, credit risks underlying the Company's assets, especially related to the Company's mortgage credit investments, changes in political and monetary policies, changes in default rates, changes in prepayment rates and other assumptions underlying our estimates related to our projections of future earnings available for distribution, changes in the Company's returns, changes in the use of the Company's tax benefits, the Company's ability to qualify and maintain qualification as a REIT, changes in the agency MBS asset yield, changes in the Company's monetization of net operating loss carryforwards, changes in the Company's investment strategy, changes in the Company's ability to generate cash earnings and dividends, preservation and utilization of the Company's net operating loss and net capital loss carryforwards, impacts of changes to and changes by Fannie Mae and Freddie Mac, actions taken by the U.S. Federal Reserve, the Federal Housing Finance Agency and the U.S. Treasury, availability of opportunities that meet or exceed the Company's risk adjusted return expectations, ability and willingness to make future dividends, ability to generate sufficient cash through retained earnings to satisfy capital needs, the Company's ability to consummate the proposed plan of merger with Ellington, the uncertainty and economic impact of a resurgence of the coronavirus (COVID-19) pandemic or other public health emergencies, and the effect of general economic, political, regulatory and market conditions, including the impact of a potential recessionary environment.  These and other material risks are described in the Company's most accurate Annual Report on Form 10-K and any other documents filed by the Company with the SEC from time to time, which are available from the Company and from the SEC, and you should read and understand these risks when evaluating any forward-looking statement. All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect the Company.  Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Financial data to follow