Boralex Inc. (“Boralex” or the “Company”) (TSX: BLX) is pleased to
report its results for the third quarter and nine-month period
ended September 30, 2024.
Highlights
Third quarter financial results
-
EBITDA(A)1, operating
income and net earnings under pressure in Q3-2024 owing to adverse
weather conditions
- Production down 3% (1% on a combined1 basis)2 from Q3-2023;
total production 14% (11%) below anticipated production1 due
primarily to adverse wind conditions in Canada and France as well
as increased curtailments at certain wind farms.
- EBITDA(A) of $87 million ($109 million on a combined basis) in
Q3-2024, down $3 million ($4 million) from Q3-2023, with the
decrease in production partially offset by the contribution of
newly commissioned sites in France and the positive impact of the
electricity selling price optimization strategy.
- Operating income of $7 million ($22 million) in Q3-2024, down
$6 million ($6 million) from Q3-2023.
- Net earnings down $7 million from Q3-2023.
- Lower net cash flow related to
operating activities for the quarter, balance sheet remains
strong
- Net cash outflows related to operating activities of $184
million in Q3-2024 compared to inflows of $1 million in Q3-2023, a
decrease attributable to the change in non-cash working capital
items following the payment from accounts payable of the
inframarginal revenue cap tax and the feed-in premium in
France.
- Discretionary cash flows1 of $16 million in Q3-2024, down $7
million from Q3-2023.
- $288 million of cash and cash equivalents included in the $608
million of available cash resources and authorized financing1 as at
September 30, 2024.
Update on development and construction
activities
- Under-construction and
ready-to-build projects progressing according to plan
- Ongoing turbine assembly at the Apuiat wind farm in Québec
(total 200 MW, Boralex’s share 100 MW) and the Limekiln wind farm
in Scotland (106 MW), both scheduled for commissioning later this
year.
- Start of construction at the Hagersville (300 MW) and Tilbury
(80 MW) storage projects in Ontario, scheduled for commissioning in
the fourth quarter of 2025.
- Ongoing development of the Des Neiges Sud wind project in
Québec (total 400 MW, Boralex’s share 133 MW) and the Oxford
storage project in Ontario (125 MW), both scheduled for
commissioning in 2026.
- Acquisition of Sallachy, a 50
MW advanced-stage wind project in the United Kingdom
- 391 MW added to the
early-stage project pipeline
- 510 MW in wind, solar, and storage capacity added and modified
in North America and Europe.
- 119 MW of non-strategic solar projects removed in
Scotland.
- Electricity selling price optimization
strategy
- Signing of a 15-year corporate PPA
with Nestlé France for a facility commissioned in 2024 and two
projects included in the Corporation's project pipeline.
- Signing of a 20-year corporate PPA
with Saint-Gobain for two solar power projects and one wind power
project included in the Corporation's project pipeline.
|
1 |
EBITDA(A) is a total of segment measures. Anticipated production is
an additional financial measure. “Combined,” “discretionary cash
flows” and “available cash resources and authorized financing” are
non-GAAP financial measures and do not have a standardized
definition under IFRS. Consequently, these measures may not be
comparable to similar measures used by other companies. For more
details, see the Non-IFRS financial measures and other financial
measures section of this press release. |
| 2 |
Figures in brackets indicate results on a combined basis as opposed
to a consolidated basis. |
“We are pleased to report on the substantial
developments within our secured project pipeline. Construction is
proceeding apace at our Apuiat and Limekiln wind projects in Québec
and Scotland, with commissioning of both projects planned for later
this year. We have also commenced construction on our Hagersville
and Tilbury storage projects in Ontario, which are scheduled for
commissioning at the end of 2025. These developments confirm our
teams’ ability to successfully execute projects on time in a
variety of geographical settings, which bodes well for future
projects. Demand in our target markets remains strong and we are
well positioned to meet it. In particular, Hydro-Québec’s plan to
rapidly develop 10 GW of projects, the Ontario government’s
announcement of a 5 GW competitive energy procurement and the
announcement of major initiatives linked to an accelerated energy
transition in the United Kingdom represent strong growth potential
for the Company,” said Patrick Decostre, President and Chief
Executive Officer of Boralex.
“This quarter, Boralex recorded a low level of
production owing to adverse weather conditions in both Canada and
France. In the past few years we have seen the volatility of the
resource in our segment grow from quarter to quarter, which makes
it more difficult to plan and manage production without however
affecting mid to long term annual production forecasts. The
fluctuating weather conditions underscore the need to diversify
both geographically, notably in the UK and technologically in order
to strengthen the resilience of our business and ensure more stable
production. We are also working to optimize our revenues by
diversifying our electricity selling price optimization strategy,
and on that front we are very proud to announce the signature of
two corporate power purchase agreements in France with leading
industrial players Nestlé and Saint-Gobain,” Mr. Decostre
added.
Finally, Boralex continues to excel on the
corporate social responsibility front. In the third quarter, the
Company announced that it was one of the few companies in the
industry to have had its greenhouse gas emission reduction targets
validated by the Science Based Targets initiative (SBTi). This
recognition shows Boralex’s commitment to achieve carbon neutrality
by 2050.
3rd quarter highlights
Three-month periods ended September
30
|
(in millions of Canadian dollars, unless otherwise specified)
(unaudited) |
Consolidated |
Combined |
|
|
2024 |
|
|
2023 |
|
Change |
|
2024 |
|
|
2023 |
|
Change |
|
|
|
|
|
|
$ |
|
% |
|
|
|
|
|
|
$ |
|
% |
|
|
Power production (GWh)1 |
|
1,081 |
|
|
1,110 |
|
|
(29 |
) |
(3 |
) |
|
1,508 |
|
|
1,522 |
|
|
(14 |
) |
(1 |
) |
|
Revenues from energy sales and feed-in premium |
|
150 |
|
|
171 |
|
|
(21 |
) |
(12 |
) |
|
175 |
|
|
194 |
|
|
(19 |
) |
(10 |
) |
|
Operating income |
|
7 |
|
|
13 |
|
|
(6 |
) |
(44 |
) |
|
22 |
|
|
28 |
|
|
(6 |
) |
(20 |
) |
|
EBITDA(A) |
|
87 |
|
|
90 |
|
|
(3 |
) |
(4 |
) |
|
109 |
|
|
113 |
|
|
(4 |
) |
(4 |
) |
|
Net loss |
|
(14 |
) |
|
(7 |
) |
|
(7 |
) |
>(100 |
) |
|
(14 |
) |
|
(7 |
) |
|
(7 |
) |
>(100 |
) |
|
Net loss attributable to shareholders of Boralex |
|
(14 |
) |
|
(8 |
) |
|
(6 |
) |
(92 |
) |
|
(14 |
) |
|
(8 |
) |
|
(6 |
) |
(92 |
) |
|
Per share - basic and diluted |
|
($0.13 |
) |
|
($0.07 |
) |
|
($0.06 |
) |
(90 |
) |
|
($0.13 |
) |
|
($0.07 |
) |
|
($0.06 |
) |
(88 |
) |
|
Net cash flows related to operating activities |
|
(184 |
) |
|
1 |
|
|
(185 |
) |
>(100 |
) |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
Cash flows from operations2 |
|
64 |
|
|
67 |
|
|
(3 |
) |
(5 |
) |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
Discretionary cash flows |
|
16 |
|
|
23 |
|
|
(7 |
) |
(30 |
) |
|
— |
|
|
— |
|
|
— |
|
— |
|
In the third quarter of 2024, Boralex produced
1,081 GWh (1,508 GWh) of electricity, 3% (1%) less than the 1,110
GWh (1,522 GWh) produced in the third quarter of 2023. The decrease
was mainly attributable to the weather conditions and power
curtailments. As a result, Boralex ended the quarter with total
production that was 14% (11%) below anticipated production.
Revenues from energy sales and feed-in premiums
for the three-month period ended September 30, 2024, amounted to
$150 million ($175 million), 12% (10% on a combined basis) lower
than in the third quarter of 2023. The decrease was mainly
attributable to the lower production. EBITDA(A)1 amounted to $87
million ($109 million), down 4% (4%) from the third quarter of
2023. The decline in production was partially offset by the
contribution of new assets commissioned in France and to a lesser
degree by the positive impact of the electricity selling price
optimization strategy. Operating income totalled $7 million ($22
million), compared to $13 million ($28 million) for the same
quarter of 2023. The Company posted a net loss of $14 million, a
decrease of $7 million compared to the $7 million loss recorded for
the same quarter of 2023.
|
1 |
Power production includes the production for which Boralex received
financial compensation following power generation limitations as
management uses this measure to evaluate the Corporation’s
performance. This adjustment facilitates the correlation between
power production and revenues from energy sales and feed- in
premium. |
| 2 |
The cash flows from operations is a non-GAAP financial measure and
does not have a standardized meaning under IFRS. Accordingly, it
may not be comparable to similarly named measures used by other
companies. For more details, see the Non-IFRS and other financial
measures section of this press release. |
Nine-month periods ended September
30
|
(in millions of Canadian dollars, unless otherwise specified)
(unaudited) |
Consolidated |
Combined |
|
|
2024 |
|
|
2023 |
|
Change |
|
2024 |
|
|
2023 |
|
Change |
|
|
|
|
|
|
$ |
|
% |
|
|
|
|
|
|
$ |
|
% |
|
|
Power production (GWh)1 |
|
4,171 |
|
|
4,159 |
|
|
12 |
|
— |
|
|
5,745 |
|
|
5,670 |
|
|
75 |
|
1 |
|
|
Revenues from energy sales and feed-in premium |
|
589 |
|
|
679 |
|
|
(90 |
) |
(13 |
) |
|
675 |
|
|
759 |
|
|
(84 |
) |
(11 |
) |
|
Operating income |
|
148 |
|
|
128 |
|
|
20 |
|
16 |
|
|
214 |
|
|
187 |
|
|
27 |
|
15 |
|
|
EBITDA(A) |
|
412 |
|
|
376 |
|
|
36 |
|
10 |
|
|
479 |
|
|
446 |
|
|
33 |
|
7 |
|
|
Net earnings |
|
76 |
|
|
57 |
|
|
19 |
|
32 |
|
|
76 |
|
|
57 |
|
|
19 |
|
32 |
|
|
Net earnings attributable to shareholders of Boralex |
|
52 |
|
|
41 |
|
|
11 |
|
26 |
|
|
52 |
|
|
41 |
|
|
11 |
|
26 |
|
|
Per share - basic and diluted |
|
$0.50 |
|
|
$0.40 |
|
|
$0.10 |
|
26 |
|
|
$0.50 |
|
|
$0.40 |
|
|
$0.10 |
|
26 |
|
|
Net cash flows related to operating activities |
|
184 |
|
|
389 |
|
|
(205 |
) |
(53 |
) |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
Cash flows from operations1 |
|
310 |
|
|
284 |
|
|
26 |
|
9 |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
|
As atSep. 30 |
|
As atDec. 31 |
|
Change |
As atSep. 30 |
|
As atDec. 31 |
|
Change |
|
|
|
|
|
|
|
|
$ |
|
% |
|
|
|
|
|
|
|
|
$ |
|
% |
|
|
Total assets |
|
6,588 |
|
|
6,574 |
|
|
14 |
|
— |
|
|
7,461 |
|
|
7,304 |
|
|
157 |
|
2 |
|
|
Debt - principal balance |
|
3,464 |
|
|
3,327 |
|
|
137 |
|
4 |
|
|
4,030 |
|
|
3,764 |
|
|
266 |
|
7 |
|
|
Total project debt |
|
3,117 |
|
|
2,844 |
|
|
273 |
|
10 |
|
|
3,561 |
|
|
3,281 |
|
|
280 |
|
9 |
|
|
Total corporate debt |
|
347 |
|
|
483 |
|
|
(136 |
) |
(28 |
) |
|
347 |
|
|
483 |
|
|
(136 |
) |
(28 |
) |
In the nine-month period ended September 30,
2024, Boralex produced 4,171 GWh (5,745 GWh) of power, slightly
more than the 4,159 GWh (5,670 GWh) produced in the same period in
2023. Revenues from energy sales and feed-in premiums for the
nine-month period ended September 30, 2024, amounted to $589
million ($675 million), down $90 million ($84 million) or 13% (11%)
from the same period in 2023.
EBITDA(A) amounted to $412 million ($479
million), up $36 million ($33 million) or 10% (7%) from the same
period last year. Operating income totalled $148 million ($214
million), up $20 million ($27 million) from the same period in
2023. Overall, for the nine-month period ended September 30, 2024,
Boralex posted net earnings of $76 million ($76 million) compared
to net earnings of $57 million ($57 million) for the same period in
2023.
|
1 |
Power production includes the production for which Boralex received
financial compensation following power generation limitations
imposed by its customers since management uses this measure to
evaluate the Corporation's performance. This adjustment facilitates
the correlation between power production and revenues from energy
sales and feed-in premiums. |
Outlook
Boralex’s 2025 Strategic Plan is built around
the same four strategic directions as the plan launched in 2019 –
growth, diversification, customers and optimization – and six
corporate targets. The details of the plan, which also sets out
Boralex’s corporate social responsibility strategy, are found in
the Company’s annual report. Highlights of the main achievements
for the quarter ended September 30, 2024, in relation to the 2025
Strategic Plan can be found in the 2024 Interim Report 3, in the
Investors section of the Boralex website.
In the coming quarters, Boralex will continue to
work on its various initiatives under the strategic plan, including
project development, analysis of acquisition targets and
optimization of power sales and operating costs.
Finally, to fuel its organic growth, the Company
has a pipeline of projects at various stages of development and
construction defined on the basis of clearly identified criteria,
totaling 7.2 GW of wind, solar and energy storage projects.
Dividend declaration
The Company’s Board of Directors has authorized
and announced a quarterly dividend of $0.1650 per common share.
This dividend will be paid on December 16, 2024, to shareholders of
record at the close of business on November 29, 2024. Boralex
designates this dividend as an “eligible dividend” pursuant to
paragraph 89 (14) of the Income Tax Act (Canada) and all provincial
legislation applicable to eligible dividends.
About Boralex
At Boralex, we have been providing affordable
renewable energy accessible to everyone for over 30 years. As a
leader in the Canadian market and France’s largest independent
producer of onshore wind power, we also have facilities in the
United States and development projects in the United Kingdom. Over
the past five years, our installed capacity has more than doubled
to over 3.1 GW. We are developing a portfolio of projects in
development and construction of more than 7.2 GW in wind, solar and
storage projects, guided by our values and our corporate social
responsibility (CSR) approach. Through profitable and sustainable
growth, Boralex is actively participating in the fight against
global warming. Thanks to our fearlessness, our discipline, our
expertise and our diversity, we continue to be an industry leader.
Boralex’s shares are listed on the Toronto Stock Exchange under the
ticker symbol BLX.
For more information, visit www.boralex.com or
www.sedarplus.ca. Follow us on Facebook, LinkedIn and X.
Non-IFRS measures
Performance measures
In order to assess the performance of its assets
and reporting segments, Boralex uses performance measures.
Management believes that these measures are widely accepted
financial indicators used by investors to assess the operational
performance of a company and its ability to generate cash through
operations. The non-IFRS and other financial measures also provide
investors with insight into the Corporation’s decision making as
the Corporation uses these non-IFRS financial measures to make
financial, strategic and operating decisions. The non-IFRS and
other financial measures should not be considered as substitutes
for IFRS measures.
These non-IFRS and other financial measures are
derived primarily from the audited consolidated financial
statements, but do not have a standardized meaning under IFRS;
accordingly, they may not be comparable to similarly named measures
used by other companies. Non-IFRS and other financial measures are
not audited. They have important limitations as analytical tools
and investors are cautioned not to consider them in isolation or
place undue reliance on ratios or percentages calculated using
these non-IFRS financial measures.
|
Non-IFRS financial measures |
|
Specific financialmeasure |
Use |
Composition |
Most directlycomparable IFRSmeasure |
|
Financial data - Combined (all disclosed financial data) |
To assess the operating performance and the ability of a company to
generate cash from its operations and investments in joint ventures
and associates. |
Results from the combination of the financial information of
Boralex Inc. under IFRS and the share of the financial information
of the Interests. Interests in the Joint Ventures and associates,
Share in earnings (losses) of the Joint Ventures and associates and
Distributions received from the Joint Ventures and associates are
then replaced with Boralex’s respective share in the financial
statements of the Interests (revenues, expenses, assets,
liabilities, etc.) |
Respective financial data - Consolidated |
|
Discretionary cash flows |
To assess the cash generated from operations and the amount
available for future development or to be paid as dividends to
common shareholders while preserving the long-term value of the
business. Corporate objectives for 2025 from the strategic
plan. |
Net cash flows related to operating activities before "change in
non-cash items related to operating activities,” less
(i) distributions paid to non-controlling shareholders;
(ii) additions to property, plant and equipment (maintenance
of operations); (iii) repayments on non-current debt
(projects) and repayments to tax equity investors;(iv) principal
payments related to lease liabilities;(v) adjustments for
non-operational items; plus(vi) development costs (from the
statement of earnings). |
Net cash flows related to operating activities |
|
Cash flows from operations |
To assess the cash generated by the Company's operations and its
ability to finance its expansion from these funds. |
Net cash flows related to operating activities before changes in
non-cash items related to operating activities. |
Net cash flows related to operating activities |
|
Non-IFRS financial measures |
|
Specific financialmeasure |
Use |
Composition |
Most directlycomparable IFRSmeasure |
|
Available cash and cash equivalents |
To assess the cash and cash equivalents available, as at balance
sheet date, to fund the Corporation's growth. |
Represents cash and cash equivalents, as stated on the balance
sheet, from which known short-term cash requirements are
excluded. |
Cash and cash equivalents |
|
Available cash resources and authorized financing |
To assess the total cash resources available, as at balance sheet
date, to fund the Corporation's growth. |
Results from the combination of credit facilities available to fund
growth and the available cash and cash equivalents. |
Cash and cash equivalents |
|
Other financial measures - Total of segments
measure |
|
Specific financial measure |
Most directly comparable IFRS measure |
|
EBITDA(A) |
Operating income |
|
Other financial measures - Supplementary Financial
Measures |
|
Specific financial measure |
Composition |
|
Credit facilities available for growth |
The credit facilities available for growth include the unused
tranche of the parent company's credit facility, apart from the
accordion clause, as well as the unused tranche credit facilities
of subsidiaries which includes the unused tranche of the credit
facility- France and the unused tranche of the construction
facility. |
|
Anticipated production |
For older sites, anticipated production by the Corporation is based
on adjusted historical averages, planned commissioning and
shutdowns and, for all other sites, on the production studies
carried out. |
Combined
The following tables reconcile Consolidated
financial data with data presented on a Combined basis:
|
(in millions of Canadian dollars) (unaudited) |
2024 |
|
2023 |
|
|
Consolidated |
|
Reconciliation(1) |
|
Combined |
|
Consolidated |
|
Reconciliation(1) |
|
Combined |
|
|
Three-month periods ended September 30: |
|
|
|
|
|
|
|
|
|
Power production (GWh)(2) |
1,081 |
|
427 |
|
1,508 |
|
1,110 |
|
412 |
|
1,522 |
|
|
Revenues from energy sales and feed-in premium |
150 |
|
25 |
|
175 |
|
171 |
|
23 |
|
194 |
|
|
Operating income |
7 |
|
15 |
|
22 |
|
13 |
|
15 |
|
28 |
|
|
EBITDA(A) |
87 |
|
22 |
|
109 |
|
90 |
|
23 |
|
113 |
|
|
Net loss |
(14 |
) |
— |
|
(14 |
) |
(7 |
) |
— |
|
(7 |
) |
|
Nine-month periods ended September 30: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Power production (GWh)(2) |
4,171 |
|
1,574 |
|
5,745 |
|
4,159 |
|
1,511 |
|
5,670 |
|
|
Revenues from energy sales and feed-in premiums |
589 |
|
86 |
|
675 |
|
679 |
|
80 |
|
759 |
|
|
Operating income |
148 |
|
66 |
|
214 |
|
128 |
|
59 |
|
187 |
|
|
EBITDA(A) |
412 |
|
67 |
|
479 |
|
376 |
|
70 |
|
446 |
|
|
Net earnings |
76 |
|
— |
|
76 |
|
57 |
|
— |
|
57 |
|
|
|
As at September 30, 2024 |
|
As at December 31, 2023 |
|
|
Total assets |
6,588 |
|
873 |
|
7,461 |
|
6,574 |
|
730 |
|
7,304 |
|
|
Debt - Principal balance |
3,464 |
|
566 |
|
4,030 |
|
3,327 |
|
437 |
|
3,764 |
|
|
(1) |
Includes the respective contribution of joint ventures and
associates as a percentage of Boralex's interest less adjustments
to reverse recognition of these interests under IFRS. This
contribution is attributable to the North America segment's wind
farms and includes corporate expenses of $1 million under EBITDA(A)
for the nine-month period ended September 30, 2024 ($1 million as
at September 30, 2023). |
| (2) |
Includes compensation following electricity production
limitations. |
EBITDA(A)
EBITDA(A) is a total of segment financial
measures and represents earnings before interest, taxes,
depreciation and amortization, adjusted to exclude other items such
as acquisition and integration costs, other losses (gains), net
loss (gain) on financial instruments and foreign exchange loss
(gain), with the last two items included under Other.
EBITDA(A) is used to assess the performance of
the Corporation's reporting segments.
EBITDA(A) is reconciled to the most comparable
IFRS measure, namely, operating income, in the following table:
|
(in millions of Canadian dollars) (unaudited) |
2024 |
|
2023 |
|
Change 2024 vs 2023 |
|
Consolidated |
|
Reconciliation(1) |
|
Combined |
|
Consolidated |
|
Reconciliation(1) |
|
Combined |
|
Consolidated |
|
Combined |
|
|
Three-month periods ended September 30: |
|
|
|
|
EBITDA(A) |
87 |
|
22 |
|
109 |
|
90 |
|
23 |
|
113 |
|
(3 |
) |
(4 |
) |
|
Amortization |
(77 |
) |
(15 |
) |
(92 |
) |
(73 |
) |
(15 |
) |
(88 |
) |
(4 |
) |
(4 |
) |
|
Impairment |
(2 |
) |
— |
|
(2 |
) |
— |
|
— |
|
— |
|
(2 |
) |
(2 |
) |
|
Other gains |
7 |
|
— |
|
7 |
|
— |
|
3 |
|
3 |
|
7 |
|
4 |
|
|
Share in earnings of joint ventures and associates |
(9 |
) |
9 |
|
— |
|
(1 |
) |
1 |
|
— |
|
(8 |
) |
— |
|
|
Change in fair value of a derivative included in the share in
earnings of a joint venture |
1 |
|
(1 |
) |
— |
|
(3 |
) |
3 |
|
— |
|
4 |
|
— |
|
|
Operating income |
7 |
|
15 |
|
22 |
|
13 |
|
15 |
|
28 |
|
(6 |
) |
(6 |
) |
|
|
|
|
|
|
|
|
|
Nine-month periods ended September 30: |
|
|
|
|
|
|
|
EBITDA(A) |
412 |
|
67 |
|
479 |
|
376 |
|
70 |
|
446 |
|
36 |
|
33 |
|
|
Amortization |
(224 |
) |
(44 |
) |
(268 |
) |
(218 |
) |
(44 |
) |
(262 |
) |
(6 |
) |
(6 |
) |
|
Impairment |
(5 |
) |
— |
|
(5 |
) |
— |
|
— |
|
— |
|
(5 |
) |
(5 |
) |
|
Other gains |
8 |
|
— |
|
8 |
|
— |
|
3 |
|
3 |
|
8 |
|
5 |
|
|
Share in earnings of joint ventures and associates |
(43 |
) |
43 |
|
— |
|
(42 |
) |
42 |
|
— |
|
(1 |
) |
— |
|
|
Change in fair value of a derivative included in the share in
earnings of a joint venture |
— |
|
— |
|
— |
|
12 |
|
(12 |
) |
— |
|
(12 |
) |
— |
|
|
Operating income |
148 |
|
66 |
|
214 |
|
128 |
|
59 |
|
187 |
|
20 |
|
27 |
|
|
(1) |
Includes the respective contribution of joint ventures and
associates as a percentage of Boralex's interest less adjustments
to reverse recognition of these interests under IFRS. |
Cash flow from operations and discretionary cash
flows
The Corporation computes the cash flow from
operations and discretionary cash flows as follows:
|
(in millions of Canadian dollars) (unaudited) |
Consolidated |
|
Three-month periods ended |
Twelve-month periods ended |
|
September 30 |
September 30 |
December 31 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
Net cash flows related to operating
activities |
(184 |
) |
1 |
|
291 |
|
496 |
|
|
Change in non-cash items relating to operating activities |
248 |
|
66 |
|
180 |
|
(51 |
) |
|
Cash flows from operations |
64 |
|
67 |
|
471 |
|
445 |
|
|
Repayments on non-current debt (projects)(1) |
(48 |
) |
(44 |
) |
(237 |
) |
(232 |
) |
|
Adjustment for non-operating items(2) |
1 |
|
3 |
|
4 |
|
6 |
|
|
|
17 |
|
26 |
|
238 |
|
219 |
|
|
Principal payments related to lease liabilities(3) |
(4 |
) |
(3 |
) |
(18 |
) |
(17 |
) |
|
Distributions paid to non-controlling shareholders(4) |
(10 |
) |
(9 |
) |
(68 |
) |
(57 |
) |
|
Additions to property, plant and equipment (maintenance of
operations)(5) |
(3 |
) |
(1 |
) |
(8 |
) |
(6 |
) |
|
Development costs (from statement of earnings)(6) |
16 |
|
10 |
|
54 |
|
45 |
|
|
Discretionary cash flows |
16 |
|
23 |
|
198 |
|
184 |
|
|
(1) |
Includes repayments on non-current debt (projects) and repayments
to tax equity investors, and excludes VAT bridge financing, early
debt repayments and repayments under the construction facility -
Boralex Energy Investments portfolio and the CDPQ Fixed Income Inc.
term loan. |
|
(2) |
For the twelve-month periods ended September 30, 2024 and December
31, 2023, favourable adjustment consisting mainly of acquisition,
integration and transaction costs. |
|
(3) |
Excludes the principal payments related to lease liabilities for
projects under development and construction. |
|
(4) |
Comprises distributions paid to non-controlling shareholders as
well as the portion of discretionary cash flows attributable to the
non-controlling shareholder of Boralex Europe Sàrl. |
|
(5) |
Excludes the additions to the property, plant and equipment of
regulated assets (treated as assets under construction since they
are regulated assets for which investments in the plant are
considered in the setting of its electricity selling price). For
the twelve-month period ended September 30, 2024, a favourable
adjustment of $3 million was made to take into account this change
of position. |
|
(6) |
During Q1-2024, the Corporation reclassified the employee benefits
for 2023 and 2024 related to its incentive plans, which were
reported in full under Operating expenses in the consolidated
statements of earnings. To better allocate these expenses to the
Corporation's various functions and thus provide more relevant
information to users of the financial statements, the Corporation
is now allocating these costs to Operating, Administrative and
Development expenses in the consolidated statements of earnings
according to the breakdown of staff. This change resulted in a $2
million increase in development costs for the three-month period
ended September 30, 2023, a $1 million increase for the
twelve-month period ended September 30, 2024, and a $5 million
increase for the year ended December 31, 2023. |
Available cash and cash equivalents and
available cash resources and authorized financing
The Corporation defines available cash and cash
equivalents as well as available cash resources and authorized
financing as follows:
|
(in millions of Canadian dollars) (unaudited) |
Consolidated |
|
As at September 30 |
|
As at December 31 |
|
|
2024 |
|
2023 |
|
|
Cash and cash equivalents |
288 |
|
478 |
|
|
Cash and cash equivalents held by entities subject to project debt
agreements(1) |
(228 |
) |
(388 |
) |
|
Bank overdraft |
— |
|
(6 |
) |
|
Available cash and cash equivalents |
60 |
|
84 |
|
|
Credit facilities available for growth |
548 |
|
463 |
|
|
Available cash resources and authorized
financing |
608 |
|
547 |
|
|
(1) |
This cash can be used for the operations of the respective
projects, but is subject to restrictions for non-project related
purposes under the credit agreements. |
Disclaimer regarding forward-looking
statements
Certain statements contained in this release,
including those related to results and performance for future
periods, installed capacity targets, EBITDA(A) and discretionary
cash flows, the Corporation's strategic plan, business model and
growth strategy, organic growth and growth through mergers and
acquisitions, obtaining an investment grade credit rating, payment
of a quarterly dividend, the Corporation’s financial targets, the
projects commissioning dates, the portfolio of renewable energy
projects, the Corporation’s Growth Path, the bids for new storage
and solar projects and its Corporate Social Responsibility (CSR)
objectives are forward-looking statements based on current
forecasts, as defined by securities legislation. Positive or
negative verbs such as “will,” “would,” “forecast,” “anticipate,”
“expect,” “plan,” “project,” “continue,” “intend,” “assess,”
“estimate” or “believe,” or expressions such as “toward,” “about,”
“approximately,” “to be of the opinion,” “potential” or similar
words or the negative thereof or other comparable terminology, are
used to identify such statements.
Forward-looking statements are based on major
assumptions, including those about the Corporation’s return on its
projects, as projected by management with respect to wind and other
factors, opportunities that may be available in the various sectors
targeted for growth or diversification, assumptions made about
EBITDA(A) margins, assumptions made about the sector realities and
general economic conditions, competition, exchange rates as well as
the availability of funding and partners. While the Corporation
considers these factors and assumptions to be reasonable, based on
the information currently available to the Corporation, they may
prove to be inaccurate.
Boralex wishes to clarify that, by their very
nature, forward-looking statements involve risks and uncertainties,
and that its results, or the measures it adopts, could be
significantly different from those indicated or underlying those
statements, or could affect the degree to which a given
forward-looking statement is achieved. The main factors that may
result in any significant discrepancy between the Corporation’s
actual results and the forward-looking financial information or
expectations expressed in forward-looking statements include the
general impact of economic conditions, fluctuations in various
currencies, fluctuations in energy prices, the risk of not renewing
PPAs or being unable to sign new corporate PPA, the risk of not
being able to capture the US or Canadian investment tax credit,
counterparty risk, the Corporation’s financing capacity,
cybersecurity risks, competition, changes in general market
conditions, industry regulations and amendments thereto,
particularly the legislation, regulations and emergency measures
that could be implemented for time to time to address high energy
prices in Europe, litigation and other regulatory issues related to
projects in operation or under development, as well as certain
other factors considered in the sections dealing with risk factors
and uncertainties appearing in Boralex's MD&A for the fiscal
year ended December 31, 2023.
Unless otherwise specified by the Corporation,
forward-looking statements do not take into account the effect that
transactions, non-recurring items or other exceptional items
announced or occurring after such statements have been made may
have on the Corporation’s activities. There is no guarantee that
the results, performance or accomplishments, as expressed or
implied in the forward-looking statements, will materialize.
Readers are therefore urged not to rely unduly on these
forward-looking statements.
Unless required by applicable securities
legislation, Boralex’s management assumes no obligation to update
or revise forward- looking statements in light of new information,
future events or other changes.
| For more information: |
| |
|
| MEDIA |
INVESTOR RELATIONS |
| Camille Laventure |
Stéphane Milot |
| Senior Advisor, Public Affairs and External Communications |
Vice President, Investor Relations |
| Boralex Inc. |
Boralex Inc. |
| 438-883-8580 |
514-213-1045 |
| camille.laventure@boralex.com |
stephane.milot@boralex.com |
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