Northland Power Inc. (
“Northland” or the
“Company”) (TSX:
NPI) reported
today financial results for the three and six months ended June 30,
2024. All dollar amounts set out herein are in thousands of
Canadian dollars, unless otherwise stated.
“Northland’s strong performance in the second
quarter has contributed to solid results for the first half of
2024, largely driven by high wind resource at our offshore wind
facilities,” said John Brace, Northland’s Executive Chair. “We also
continue to make progress on the construction of our two offshore
wind projects in Taiwan and Poland, and our energy storage project
in Canada. The execution of these three projects remains our top
priority as we focus on their safe and successful delivery. At the
same time, we remain active in pursuing various development
opportunities in core markets across our 9GW development pipeline.
We are also happy to report we completed the sale of our interest
in the La Lucha Solar Facility in Mexico.”
Second Quarter Highlights
Financial results for the three months ended
June 30, 2024, were higher compared to the same quarter of 2023,
primarily due to higher wind resource across all offshore wind
facilities, contribution from the New York onshore wind projects
that achieved commercial operations in October 2023 and higher
revenue from EBSA due to higher market demand, foreign exchange
changes and rate escalations. This increase was partially offset by
lower revenue generated from the Canadian solar facilities due to
lower solar resource, and higher unpaid curtailments related to
negative prices and grid outages at our German facilities.
Financial Results
-
Sales increased to $529 million from $472 million
in 2023.
- Gross
Profit increased to $483 million from $427 million in
2023.
- Net
Income increased to $262 million from $22 million in
2023.
- Adjusted
EBITDA (a non-IFRS measure) increased to $268 million from
$232 million in 2023.
- Adjusted
Free Cash Flow per share (a non-IFRS measure) increased to
$0.27 from $0.25 in 2023.
- Free
Cash Flow per share (a non-IFRS measure) increased to
$0.20 from $0.16 in 2023.
The following table presents key IFRS and non-IFRS financial
measures and operational results. Sales, gross profit, operating
income and net income, as reported under IFRS, include consolidated
results of entities not wholly owned by Northland, whereas
Northland’s non-IFRS financial measures include only Northland’s
proportionate ownership interest.
Summary of Consolidated Results |
|
|
|
|
|
|
(in thousands
of dollars, except per share amounts) |
Three months ended June 30, |
|
Six months ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
FINANCIALS |
|
|
|
|
|
|
|
|
Sales |
$ |
528,974 |
|
$ |
471,547 |
|
$ |
1,283,894 |
|
$ |
1,093,268 |
|
Gross
profit |
|
483,376 |
|
|
427,468 |
|
|
1,180,830 |
|
|
996,371 |
|
Operating income |
|
152,025 |
|
|
102,625 |
|
|
498,194 |
|
|
375,167 |
|
Net
income (loss) |
|
262,356 |
|
|
21,662 |
|
|
411,653 |
|
|
128,799 |
|
Net
income (loss) attributable to shareholders |
|
246,090 |
|
|
4,341 |
|
|
321,693 |
|
|
74,235 |
|
Adjusted EBITDA (a non-IFRS measure) (2) |
|
268,190 |
|
|
232,255 |
|
|
722,056 |
|
|
583,954 |
|
|
|
|
|
|
|
|
|
|
Cash
provided by operating activities |
|
170,998 |
|
|
204,278 |
|
|
473,414 |
|
|
501,340 |
|
Adjusted Free Cash Flow (a non-IFRS measure) (2) |
|
68,594 |
|
|
62,703 |
|
|
294,325 |
|
|
242,773 |
|
Free
Cash Flow (a non-IFRS measure) (2) |
|
51,389 |
|
|
41,289 |
|
|
268,796 |
|
|
195,981 |
|
Cash
dividends paid |
|
49,836 |
|
|
51,148 |
|
|
100,994 |
|
|
101,195 |
|
Total
dividends declared (1) |
$ |
77,061 |
|
$ |
75,749 |
|
$ |
153,760 |
|
$ |
151,065 |
|
|
|
|
|
|
|
|
|
Per
Share |
|
|
|
|
|
|
|
|
Weighted average number of shares — basic and diluted (000s) |
|
256,659 |
|
|
252,356 |
|
|
256,070 |
|
|
251,579 |
|
Net
income (loss) attributable to common shareholders — basic and
diluted |
$ |
0.95 |
|
$ |
0.01 |
|
$ |
1.24 |
|
$ |
0.28 |
|
Adjusted Free Cash Flow — basic (a non-IFRS measure) (2) |
$ |
0.27 |
|
$ |
0.25 |
|
$ |
1.15 |
|
$ |
0.96 |
|
Free
Cash Flow — basic (a non-IFRS measure) (2) |
$ |
0.20 |
|
$ |
0.16 |
|
$ |
1.05 |
|
$ |
0.78 |
|
Total
dividends declared |
$ |
0.30 |
|
$ |
0.30 |
|
$ |
0.60 |
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
ENERGY
VOLUMES |
|
|
|
|
|
|
|
|
Electricity production in gigawatt hours
(GWh) |
|
2,563 |
|
|
2,024 |
|
|
6,030 |
|
|
4,855 |
(1) Represents
total dividends paid to common shareholders, including dividends in
cash or in shares under Northland’s dividend reinvestment
plan. |
(2) See Forward-Looking Statements and Non-IFRS Financial Measures
below. |
Second Quarter Results Summary
Offshore wind facilities
Electricity production for the three months
ended June 30, 2024, increased by 14% or 111GWh compared to the
same quarter of 2023. This was primarily due to a higher wind
resource across all offshore wind facilities, partially offset by
higher unpaid curtailments related to negative prices and grid
outages at our German facilities.
Sales of $241 million for the three months ended
June 30, 2024, increased 9% or $20 million, compared to the same
quarter of 2023, primarily due to higher production across all
offshore wind facilities by $28 million, partially offset by a $5
million P&I factor adjustment and $3 million related to various
other items.
Adjusted EBITDA of $131 million for the three
months ended June 30, 2024, increased 8% or $10 million compared to
the same quarter of 2023, due to the same factors as noted
above.
An important indicator for performance of
offshore wind facilities is the current and historical average
power production of the facility. The following tables summarize
actual electricity production and the historical average, high and
low, for the applicable operating periods of each offshore
facility:
Three months ended June 30, |
2024 (1) |
|
2023 (1) |
|
Historical Average (2) |
|
Historical High
(2) |
|
Historical Low
(2) |
Electricity production (GWh) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gemini |
498 |
|
433 |
|
446 |
|
498 |
|
385 |
Nordsee One |
207 |
|
188 |
|
190 |
|
220 |
|
150 |
Deutsche Bucht |
188 |
|
160 |
|
165 |
|
188 |
|
141 |
Total |
893 |
|
781 |
|
|
|
|
|
|
(1) Includes GWh
produced and attributed to paid curtailments. |
(2) Represents the
historical power production since the commencement of commercial
operation of the respective facility (2017 for Gemini and Nordsee
One and 2020 for Deutsche Bucht) and excludes unpaid
curtailments. |
In June 2024, one of Gemini’s two export cables
was damaged and taken out of service. The subsea repair of the
cable has commenced and completion is expected in the third
quarter. Gemini’s production continued via the second export cable.
This event occurred during the lower production season and is
expected to have an immaterial impact, net of the anticipated
insurance proceeds, to Northland’s full year results.
Onshore renewable facilities
Electricity production was 26% or 136GWh higher
than the same quarter of 2023, primarily due to the contribution
from the New York onshore wind projects that achieved commercial
operations in October 2023, and higher wind and solar resource at
the Spanish onshore renewable facilities, partially offset by lower
wind and solar resource at the Canadian onshore renewable
facilities.
Sales of $114 million were 17% or $16 million
higher than the same quarter of 2023, primarily due to the
contribution from the New York onshore wind projects and higher
revenue from the Spanish portfolio. Please refer to the MD&A
for a further breakdown of Spanish portfolio revenue by
component.
Adjusted EBITDA of $78 million was 18% or $12
million higher than the same quarter of 2023, due to the same
factors as above.
Natural gas facilities
Electricity production increased 26% or 186GWh
compared to the same quarter of 2023, mainly due to higher market
demand for dispatchable power.
Sales of $76 million for the three months ended
June 30, 2024, were largely in line with the same quarter of
2023.
Adjusted EBITDA of $50 million for the three
months ended June 30, 2024, was largely in line with the same
quarter of 2023.
Utility
Sales of $91 million for the three months ended
June 30, 2024, increased 24% or $18 million compared to the same
quarter of 2023, primarily due to the higher market demand, rate
escalations and foreign exchange gains as a result of the
strengthening of the Colombian peso.
Adjusted EBITDA of $40 million for the three
months ended June 30, 2024, increased 34% or $10 million compared
to the same quarter of 2023, primarily due to the same factors as
above.
Consolidated statement of income (loss)
General and administrative (“G&A”) costs of
$25 million in the second quarter decreased $6 million compared to
the same quarter of 2023, primarily due to lower payroll costs and
non-recurring expenditures.
Development costs of $17 million decreased $11
million compared to the same quarter of 2023, primarily due to
focused spending on development activities and timing of the
expenditures.
Net finance costs of $98 million in the second
quarter increased $16 million compared to the same quarter of 2023,
primarily due to the issuance of the Green Subordinated Notes
(“Green Notes”) in June 2023, partially offset by
scheduled repayments on facility-level loans.
Fair value gain on financial instruments was $82
million, primarily due to net movement in the fair value of
derivatives related to interest rate and foreign exchange
contracts.
Foreign exchange loss of $6 million in the
second quarter was primarily due to unrealized loss from
fluctuations in the closing foreign exchange rates.
Other income was $35 million higher than the
same quarter of 2023, primarily due to the gain on disposal of La
Lucha solar facility, partially offset by lower gains associated
with the sale of two offshore wind assets in Europe in 2023.
Net income of $262 million in the second quarter
of 2024 compared to net income of $22 million in the same quarter
of 2023, was primarily as a result of the factors described
above.
Adjusted EBITDA
The following table reconciles net income (loss)
to Adjusted EBITDA:
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
$ |
262,356 |
|
|
$ |
21,662 |
|
|
$ |
411,653 |
|
|
$ |
128,799 |
|
Adjustments: |
|
|
|
|
|
|
|
Finance costs, net |
|
76,585 |
|
|
|
71,064 |
|
|
|
149,024 |
|
|
|
138,278 |
|
Gemini interest income |
|
1,860 |
|
|
|
4,163 |
|
|
|
3,709 |
|
|
|
6,262 |
|
Provision for (recovery of) income taxes |
|
51,070 |
|
|
|
37,169 |
|
|
|
131,617 |
|
|
|
76,024 |
|
Depreciation of property, plant and equipment |
|
155,967 |
|
|
|
145,882 |
|
|
|
310,028 |
|
|
|
291,057 |
|
Amortization of contracts and intangible assets |
|
14,496 |
|
|
|
14,342 |
|
|
|
28,827 |
|
|
|
28,042 |
|
Fair value (gain) loss on derivative contracts |
|
(83,962 |
) |
|
|
(17,936 |
) |
|
|
(8 |
) |
|
|
63,003 |
|
Foreign exchange (gain) loss |
|
5,549 |
|
|
|
4,526 |
|
|
|
1,665 |
|
|
|
(24,648 |
) |
Fair value adjustment relating to disposal group classified as held
for sale |
|
— |
|
|
|
— |
|
|
|
43,884 |
|
|
|
— |
|
Elimination of non-controlling interests |
|
(53,719 |
) |
|
|
(54,042 |
) |
|
|
(163,914 |
) |
|
|
(133,009 |
) |
Finance lease (lessor) |
|
(1,175 |
) |
|
|
(1,511 |
) |
|
|
(2,409 |
) |
|
|
(2,969 |
) |
Share of (profit) loss from joint ventures |
|
(94,644 |
) |
|
|
15,327 |
|
|
|
(133,452 |
) |
|
|
16,469 |
|
Others (1) |
|
(66,193 |
) |
|
|
(8,391 |
) |
|
|
(58,568 |
) |
|
|
(3,354 |
) |
Adjusted EBITDA (2) |
$ |
268,190 |
|
|
$ |
232,255 |
|
|
$ |
722,056 |
|
|
$ |
583,954 |
|
(1) Others
primarily include Northland’s share of Adjusted EBITDA from equity
accounted investees, gain on sale of La Lucha solar facility and
other expenses (income). |
(2) See
Forward-Looking Statements and Non-IFRS Financial Measures
below. |
Adjusted EBITDA of $268 million for the three
months ended June 30, 2024, increased 15% or $36 million compared
to the same quarter of 2023. The significant factors increasing
Adjusted EBITDA include:
- $10 million
increase in operating results at the offshore wind facilities,
primarily due to higher wind resource, as described above;
- $10 million
increase in operating results at EBSA, as described above;
- $17 million
decrease in development expenditures and G&A costs, as
described above;
- $9 million
increase due to the contribution of New York Wind onshore wind
facilities; and
- $6 million
increase in the contribution from the Spanish renewables portfolio,
primarily due to higher market revenue, as described above.
The factor partially offsetting the increase in
the Adjusted EBITDA was:
- $23 million in
gains from partial asset sell-down in 2023.
Adjusted Free Cash Flow and Free Cash Flow
The following table reconciles cash flow from
operations to Adjusted Free Cash Flow and Free Cash Flow:
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cash provided by operating activities |
$ |
170,998 |
|
|
$ |
204,278 |
|
|
$ |
473,414 |
|
|
$ |
501,340 |
|
Adjustments: |
|
|
|
|
|
|
|
Net change in non-cash working capital balances related to
operations |
|
114,124 |
|
|
|
55,170 |
|
|
|
298,975 |
|
|
|
135,025 |
|
Non-expansionary capital expenditures |
|
(1,326 |
) |
|
|
(414 |
) |
|
|
(1,639 |
) |
|
|
(899 |
) |
Restricted funding for major maintenance, debt and decommissioning
reserves |
|
(7,677 |
) |
|
|
(6,811 |
) |
|
|
(12,165 |
) |
|
|
(2,653 |
) |
Interest |
|
(82,366 |
) |
|
|
(97,345 |
) |
|
|
(144,415 |
) |
|
|
(139,610 |
) |
Scheduled principal repayments on facility debt |
|
(270,503 |
) |
|
|
(274,157 |
) |
|
|
(329,062 |
) |
|
|
(325,642 |
) |
Funds set aside (utilized) for scheduled principal repayments |
|
102,073 |
|
|
|
104,016 |
|
|
|
(7,874 |
) |
|
|
(8,166 |
) |
Preferred share dividends |
|
(1,553 |
) |
|
|
(1,521 |
) |
|
|
(3,111 |
) |
|
|
(3,003 |
) |
Consolidation of non-controlling interests |
|
(15,741 |
) |
|
|
(16,670 |
) |
|
|
(83,591 |
) |
|
|
(61,653 |
) |
Investment income (1) |
|
6,617 |
|
|
|
9,755 |
|
|
|
13,222 |
|
|
|
17,270 |
|
Others (2) |
|
36,743 |
|
|
|
64,988 |
|
|
|
65,042 |
|
|
|
83,972 |
|
Free Cash Flow (3) |
$ |
51,389 |
|
|
$ |
41,289 |
|
|
$ |
268,796 |
|
|
$ |
195,981 |
|
Add back: Growth expenditures |
|
17,205 |
|
|
|
28,859 |
|
|
|
25,529 |
|
|
|
54,237 |
|
Less: Historical growth expenditures’ recovery due
to sell-down |
|
— |
|
|
|
(7,445 |
) |
|
|
— |
|
|
|
(7,445 |
) |
Adjusted Free Cash Flow (3) |
$ |
68,594 |
|
|
$ |
62,703 |
|
|
$ |
294,325 |
|
|
$ |
242,773 |
|
(1) Investment
income includes Gemini interest income and repayment of Gemini
subordinated debt. |
(2) Others
mainly include the effect of foreign exchange rates and hedges,
interest rate hedge, Nordsee One interest on shareholder loans,
share of joint venture project development costs, acquisition
costs, lease payments, interest income, Northland’s share of
Adjusted Free Cash Flow from equity accounted investees, gain on
sale of La Lucha solar facility, interest on corporate-level debt
raised to finance capitalized growth projects and other non-cash
expenses adjusted in working capital excluded from Free Cash Flow
in the period. |
(3) See
Forward-Looking Statements and Non-IFRS Financial Measures
below. |
Adjusted Free Cash Flow of $69 million for the
three months ended June 30, 2024, was 9% or $6 million higher than
the same quarter of 2023.
The significant factors increasing Adjusted Free
Cash Flow were:
- $32 million
increase in Adjusted EBITDA (gross of growth expenditures)
primarily due to the factors described above; and
- $20 million
increase from gain on disposal of La Lucha solar facility.
The factors partially offsetting the increase in
Adjusted Free Cash Flow were:
- $19 million
increase in current taxes as a result of higher operating
results;
- $22 million
decrease from foreign exchange and interest rate hedges, and other
settlements; and
- $11 million
decrease from gain from sales of offshore wind development assets
in Europe in 2023.
Free Cash Flow, which is reduced by growth
expenditures, totaled $51 million for the three months ended June
30, 2024, and was $10 million higher than the same quarter of 2023,
due to the same factors as Adjusted Free Cash Flow.
The following table reconciles Adjusted EBITDA
to Adjusted Free Cash Flow.
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Adjusted EBITDA (2) |
$ |
268,190 |
|
|
$ |
232,255 |
|
|
$ |
722,056 |
|
|
$ |
583,954 |
|
Adjustments: |
|
|
|
|
|
|
|
Scheduled debt repayments |
|
(137,551 |
) |
|
|
(144,207 |
) |
|
|
(276,803 |
) |
|
|
(283,543 |
) |
Interest expense |
|
(57,844 |
) |
|
|
(54,744 |
) |
|
|
(96,788 |
) |
|
|
(99,160 |
) |
Current taxes |
|
(36,368 |
) |
|
|
(17,694 |
) |
|
|
(106,120 |
) |
|
|
(64,690 |
) |
Non-expansionary capital expenditure |
|
(1,189 |
) |
|
|
(413 |
) |
|
|
(1,461 |
) |
|
|
(720 |
) |
Utilization (funding) of maintenance and decommissioning
reserves |
|
(7,302 |
) |
|
|
(6,347 |
) |
|
|
(10,979 |
) |
|
|
(2,645 |
) |
Lease payments, including principal and interest |
|
(317 |
) |
|
|
(1,464 |
) |
|
|
(3,381 |
) |
|
|
(4,529 |
) |
Preferred dividends |
|
(1,553 |
) |
|
|
(1,521 |
) |
|
|
(3,111 |
) |
|
|
(3,003 |
) |
Foreign exchange hedge gain (loss) |
|
(3,086 |
) |
|
|
6,830 |
|
|
|
12,891 |
|
|
|
30,288 |
|
Others (1) |
|
28,409 |
|
|
|
28,594 |
|
|
|
32,492 |
|
|
|
40,029 |
|
Free Cash Flow (2) |
$ |
51,389 |
|
|
$ |
41,289 |
|
|
$ |
268,796 |
|
|
$ |
195,981 |
|
Add Back: Growth expenditures |
|
17,205 |
|
|
|
28,859 |
|
|
|
25,529 |
|
|
|
54,237 |
|
Less: Historical growth expenditures’ recovery due
to sell-down |
|
— |
|
|
|
(7,445 |
) |
|
|
— |
|
|
|
(7,445 |
) |
Adjusted Free Cash Flow (2) |
$ |
68,594 |
|
|
$ |
62,703 |
|
|
$ |
294,325 |
|
|
$ |
242,773 |
|
(1) Others mainly
include repayment of Gemini subordinated debt, gain on sale of La
Lucha solar facility, interest rate and foreign currency hedge
settlements, and interest received on third-party loans to
partners. |
(2) See
Forward-Looking Statements and Non-IFRS Financial Measures
below. |
Significant Events and Updates
Balance Sheet:
- La Lucha
Solar Facility Sale – On June 28, 2024, Northland
completed the sale of its 100% stake in the La Lucha solar facility
to Cometa Energía, S.A. de C.V., wholly owned by Saavi Energía
(“Saavi”) for approximately $215 million in cash
after taxes, transaction fees and other customary adjustments. La
Lucha is a 130MW solar facility located in Durango, Mexico. The
facility achieved commercial operations in June 2023. A gain on
disposal of $20 million was recorded in Adjusted Free Cash Flow and
Free Cash Flow.
Renewables Growth:
-
Construction Update on Hai Long, Baltic Power, and
Oneida – The Hai Long project continues to make progress
with the fabrication of foundations, cables, and onshore and
offshore substations. The onshore construction work has advanced
well and is nearing mechanical completion. Offshore construction is
advancing, with this quarter marking the completion of installation
of offshore substation foundation jackets, the first offshore
substation topside and continuing with pin piles installations at
multiple turbine locations. Hai Long 2A and 2B pin pile
installation is expected to be completed by the end of the third
quarter. The pre-fabrication for the first batch of turbine
components including towers, generators and nacelles is progressing
well, with multiple parts en route to Taiwan. Full commercial
operations are expected to commence in 2026/2027, according to
schedule. Overall project cost is aligned with original
expectations.The Baltic Power project continues to make progress on
fabrication of onshore and offshore substations, foundations,
export cables, multiple turbine components and inter array cables.
Construction of an onshore substation and the operations and
management building are well underway. Major in-water offshore
construction activity is expected to start in early 2025. Full
commercial operations are expected to commence in the latter half
of 2026, according to schedule. Overall project cost is aligned
with original expectations.The Oneida project continues to make
progress with its construction activities. All the battery packs
and medium-voltage transformers have been delivered and cabling
installation continues across the site. The high-voltage
transformers arrived in Canada and are expected to arrive at site
in the third quarter. Full commercial operations are expected to
commence in 2025, according to schedule. Overall project cost is
aligned with original expectations.
- Other
Growth Activity – Northland continues to make progress on
its development activities in core markets for onshore renewables
including Alberta, Ontario, and New York, and offshore wind
including Scotland and South Korea. For example,
Northland signed a 15-year bilateral offtake agreement for
100% of the battery energy storage capacity from the Jurassic
Battery Energy Storage System (“Jurassic BESS”)
project in Alberta with members of the Alberta Schools Commodities
Purchasing Consortium. This is the first offtake agreement of its
kind in Canada for a battery storage project and is a key milestone
in the advancement of Northland’s Alberta portfolio.
2024 Financial Outlook
Northland’s outlook is underpinned by its
commitment to operational excellence, prudent growth in key global
markets and focus on the Company's three major renewable
construction programs, ensuring their successful execution.
To prepare for further growth, the Company also
continues to be active in pursuing various development
opportunities in its core markets. The Company has allocated $60
million of development expenditures in 2024 towards advancing the
9GW of development opportunities in markets including Alberta, New
York, Ontario, Scotland, South Korea and other select
jurisdictions.
As of August 14, 2024, management’s 2024
financial outlook remains unchanged from prior guidance. This
outlook reflects Northland’s commitment to strong operational
performance with key financial projections for 2024 including
expected Adjusted EBITDA in the range of $1.2 billion to $1.3
billion and Adjusted Free Cash Flow per share to be in the range of
$1.30 to $1.50. Furthermore, projected Free Cash Flow per share for
2024 is expected to be in the range of $1.10 to $1.30, reflecting
the Company’s commitment to prudent financial management. Due to
strong operating results experienced in the first half of 2024,
management is currently projecting the financial outlook for 2024
to be at the higher end of the disclosed guidance range.
It is important to note that while Northland is
confident in its outlook, it remains subject to the Forward-Looking
Statements set forth herein as well as the Risk Factors outlined in
Northland’s most recent Annual Information Form dated February 21,
2024 (“2023
AIF”).
Second-Quarter Earnings Conference Call
Northland will hold an earnings conference call
on August 15, 2024, to discuss its second quarter 2024
results. The call will be hosted by Northland’s Senior Management,
who will discuss the Company’s financial results and developments
as well as answering questions from analysts.
Conference call details are as follows:
Thursday, August 15, 2024, 10:00 a.m. ET
Participants wishing to join the call and ask
questions must register using the following URL below:
https://register.vevent.com/register/BI78c9f1b1d17e47499242d1b1147e8571
For all other attendees, the call will be
broadcast live on the internet, in listen-only mode and can be
accessed using the following link:
Webcast URL:
https://edge.media-server.com/mmc/p/qinx7csg
For those unable to attend the live call, an
audio recording will be available on northlandpower.com on Friday,
August 16, 2024.
Northland’s unaudited interim condensed
consolidated financial statements for the three and six months
ended June 30, 2024, and related Management’s Discussion and
Analysis can be found on SEDAR+ at www.sedarplus.ca under
Northland’s profile and on northlandpower.com.
ABOUT NORTHLAND POWER
Northland Power is a global power producer
dedicated to helping the clean energy transition by producing
electricity from clean renewable resources. Founded in 1987,
Northland has a long history of developing, building, owning and
operating clean and green power infrastructure assets and is a
global leader in offshore wind. In addition, Northland owns and
manages a diversified generation mix including onshore renewables,
natural gas energy, as well as supplying energy through a regulated
utility.
Headquartered in Toronto, Canada, with global
offices in eight countries, Northland owns or has an economic
interest in approximately 3.2GW (net 2.8GW) of operating capacity.
The Company also has a significant inventory of projects in
construction and in various stages of development encompassing
approximately 12GW of potential capacity.
Publicly traded since 1997, Northland's common
shares, Series 1 and Series 2 preferred shares trade on the Toronto
Stock Exchange under the symbols NPI, NPI.PR.A and NPI.PR.B,
respectively.
NON-IFRS FINANCIAL MEASURES
This press release includes references to the
Company’s adjusted earnings before interest, income taxes,
depreciation and amortization (“Adjusted EBITDA”),
Adjusted Free Cash Flow, Free Cash Flow and applicable payout
ratios and per share amounts, which are measures not prescribed by
International Financial Reporting Standards
(“IFRS”), and therefore do not have any
standardized meaning under IFRS and may not be comparable to
similar measures presented by other companies. Non-IFRS financial
measures are presented at Northland’s share of underlying
operations. These measures should not be considered alternatives to
net income (loss), cash flow from operating activities or other
measures of financial performance calculated in accordance with
IFRS. Rather, these measures are provided to complement IFRS
measures in the analysis of Northland’s results of operations from
management’s perspective. Management believes that Northland’s
non-IFRS financial measures and applicable payout ratio and per
share amounts are widely accepted and understood financial
indicators used by investors and securities analysts to assess the
performance of a company, including its ability to generate cash
through operations.
FORWARD-LOOKING STATEMENTS
This press release contains statements that
constitute forward-looking information within the meaning of
applicable securities laws (“forward-looking statements”) that are
provided for the purpose of presenting information about
management’s current expectations and plans. Readers are cautioned
that such statements may not be appropriate for other purposes.
Northland’s actual results could differ materially from those
expressed in, or implied by, these forward-looking statements and,
accordingly, the events anticipated by the forward-looking
statements may or may not transpire or occur. Forward-looking
statements include statements that are not historical facts and are
predictive in nature, depend upon or refer to future events or
conditions, or include words such as “expects,” “anticipates,”
“plans,” “predicts,” “believes,” “estimates,” “intends,” “targets,”
“projects,” “forecasts” or negative versions thereof and other
similar expressions or future or conditional verbs such as “may,”
“will,” “should,” “would” and “could.” These statements may
include, without limitation, statements regarding future Adjusted
EBITDA, Adjusted Free Cash Flow and Free Cash Flow, including
respective per share amounts, dividend payments and dividend payout
ratios, the timing for and attainment of the Hai Long and Baltic
Power offshore wind and Oneida energy storage projects and other
renewables growth activity, and the anticipated contributions
therefrom to Adjusted EBITDA, Adjusted Free Cash Flow and Free Cash
Flow, the expected generating capacity of certain projects,
guidance, anticipated dates of full commercial operations,
forecasts as to overall project costs, the completion of
construction, acquisitions, dispositions, whether partial or full,
investments or financings and the timing thereof, the timing for
and attainment of financial close and commercial operations for
each project, the potential for future production from project
pipelines, cost and output of development projects, the all-in
interest cost for debt financing, the impact of currency and
interest rate hedges, litigation claims, anticipated results from
the optimization of the Thorold Co-Generation facility and the
timing related thereto, future funding requirements, and the future
operations, business, financial condition, financial results,
priorities, ongoing objectives, strategies and the outlook of
Northland, its subsidiaries and joint ventures. These statements
are based upon certain material factors or assumptions that were
applied in developing the forward-looking statements, including the
design specifications of development projects, the provisions of
contracts to which Northland or a subsidiary is a party,
management’s current plans and its perception of historical trends,
current conditions and expected future developments, the ability to
obtain necessary approvals, satisfy any closing conditions, satisfy
any project finance lender conditions to closing sell-downs or
obtain adequate financing regarding contemplated construction,
acquisitions, dispositions, investments or financings, as well as
other factors, estimates and assumptions that are believed to be
appropriate in the circumstances. Although these forward-looking
statements are based upon management’s current reasonable
expectations and assumptions, they are subject to numerous risks
and uncertainties. Some of the factors that could cause results or
events to differ from current expectations include, but are not
limited to, risks associated with further regulatory and policy
changes in Spain which could impair current guidance and expected
returns, risks associated with merchant pool pricing and revenues,
risks associated with sales contracts, the emergence of widespread
health emergencies or pandemics, Northland’s reliance on the
performance of its offshore wind facilities at Gemini, Nordsee One
and Deutsche Bucht for over 50% of its Adjusted EBITDA,
counterparty and joint venture risks, contractual operating
performance, variability of sales from generating facilities
powered by intermittent renewable resources, wind and solar
resource risk, unplanned maintenance risk, offshore wind
concentration, natural gas and power market risks, commodity price
risks, operational risks, recovery of utility operating costs,
Northland’s ability to resolve issues/delays with the relevant
regulatory and/or government authorities, permitting, construction
risks, project development risks, integration and acquisition
risks, procurement and supply chain risks, financing risks,
disposition and joint-venture risks, competition risks, interest
rate and refinancing risks, liquidity risk, inflation risks,
commodity availability and cost risk, construction material cost
risks, impacts of regional or global conflicts, credit rating risk,
currency fluctuation risk, variability of cash flow and potential
impact on dividends, taxation, natural events, environmental risks,
climate change, health and worker safety risks, market compliance
risk, government regulations and policy risks, utility rate
regulation risks, international activities, cybersecurity, data
protection and reliance on information technology, labour
relations, labour shortage risk, management transition risk,
geopolitical risk in and around the regions Northland operates in,
large project risk, reputational risk, insurance risk, risks
relating to co-ownership, bribery and corruption risk, terrorism
and security, litigation risk and legal contingencies, and the
other factors described in the “Risks Factors” section of
Northland’s Management’s Discussion and Analysis and Annual
Information Form for the year ended December 31, 2023, which can be
found at www.sedarplus.ca under Northland’s profile and on
Northland’s website at northlandpower.com. Northland has attempted
to identify important factors that could cause actual results to
materially differ from current expectations; however, there may be
other factors that cause actual results to differ materially from
such expectations. Northland’s actual results could differ
materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurances can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur, and Northland cautions you not
to place undue reliance upon any such forward-looking
statements.
The forward-looking statements contained in this
release are, unless otherwise indicated, stated as of the date
hereof and are based on assumptions that were considered reasonable
as of the date hereof. Other than as specifically required by law,
Northland undertakes no obligation to update any forward-looking
statements to reflect events or circumstances after such date or to
reflect the occurrence of unanticipated events, whether as a result
of new information, future events or results, or otherwise.
Certain forward-looking information in this
release and the MD&A may also constitute a “financial outlook”
within the meaning of applicable securities laws. Financial outlook
involves statements about Northland’s prospective financial
performance, financial position or cash flows and is based on and
subject to the assumptions about future economic conditions and
courses of action and the risk factors described above in respect
of forward-looking information generally, as well as any other
specific assumptions and risk factors in relation to such financial
outlook noted in this release and the MD&A. Such assumptions
are based on management’s assessment of the relevant information
currently available and any financial outlook included in this
release and the MD&A is provided for the purpose of helping
readers understand Northland’s current expectations and plans for
the future. Readers are cautioned that reliance on any financial
outlook may not be appropriate for other purposes or in other
circumstances and that the risk factors described above or other
factors may cause actual results to differ materially from any
financial outlook. The actual results of Northland’s operations
will likely vary from the amounts set forth in any financial
outlook and such variances may be material.
For further information, please
contact:
Dario Neimarlija, Vice President, FP&A and
Investor Relations
647-288-1019
investorrelations@northlandpower.com
northlandpower.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/75bb65ef-c5b6-45a7-a069-73e96fcec7fa
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