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2017 second quarter: Boralex announces growth in operating results

by pmnationtalk on August 9, 201733 Views

Montréal, August 9, 2017 – Boralex Inc. (“Boralex” or the “Corporation”) (TSX: BLX) recorded increases in production, revenues from energy sales and EBITDA(A) for the three-month period ended June 30, 2017, compared with the second quarter of 2016.

“We’re extremely proud of these results which underscore the merits of our expansion strategy,” pointed out Patrick Lemaire, Boralex’s President and Chief Executive Officer. “What’s more, thanks to our approach focused on segment and geographic diversification of our sites, the good performance of wind farms in Canada and hydroelectric power stations in the United States more than compensated the less favourable conditions for French wind farms and Canadian hydroelectric power stations.”

Operational highlights

Note: The figures in brackets below show results under proportionate consolidation compared with the results under IFRS.

Boralex generated 744 GWh (863 GWh) of electricity in the second quarter of 2017, up 31% (27%) from the same period of 2016. This increase stemmed largely from the contribution of sites acquired and commissioned after June 30, 2016, representing an installed capacity of 274 MW.

Excluding the contribution of these sites, the production at existing facilities rose 7% (7%), driven primarily by the improved performance at U.S. hydroelectric power stations which benefited from better water flow conditions during the last quarter, offsetting the lower production of French wind farms and Canadian hydroelectric power stations. Note that weather conditions are generally less favourable for the wind power segment in the second quarter.

FINANCIAL HIGHLIGHTS Three-month periods ended June 30
(in millions of dollars, unless otherwise specified)
2017 2016 2017 2016
IFRS Proportionate consolidation(1)
Production (GWh) 744 566 863 678
Revenues from energy sales 92 65 105 77
EBITDA(A)(2) 57 38 67 48
EBITDA(A) margin (%) 62 58 64 63
Net loss (7) (7) (7) (7)
Net loss attributable to shareholders of
Boralex (2) (7) (2) (7)
Per share (basic and diluted) $(0.02) $(0.11) $(0.02) $(0.11)
Net cash flows related to operating
activities 38 29 43 33
Cash flows from operations(3) 44 27 46 28
  • These amounts  are  adjusted on  a  proportionate  consolidation  basis;  a  non-IFRS    See  the Reconciliations between IFRS and Proportionate Consolidation and Non-IFRS Measures sections in the Interim Report available on the websites of Boralex (boralex.com) and SEDAR (sedar.com).
  • EBITDA(A) consists of earnings before interest, taxes, amortization and depreciation, adjusted to include other items. For more details, see the Non-IFRS Measures section in the Interim Report available on the websites of Boralex (boralex.com) and SEDAR (sedar.com).
  • This is a non-IFRS measure. For more details, see the Non-IFRS Measures section in the Interim Report available on the websites of Boralex (boralex.com) and SEDAR (sedar.com).
FINANCIAL HIGHLIGHTS Six-month periods ended June 30
(in millions of dollars, unless otherwise specified)
2017 2016 2017 2016
IFRS Proportionate consolidation(1)
Production (GWh) 1,653 1,387 1,926 1,651
Revenues from energy sales 211 171 240 199
EBITDA(A)(2) 144 118 165 138
EBITDA(A) margin (%) 68 69 69 70
Net earnings 9 16 9 16
Net earnings attributable to
shareholders of Boralex 15 14 15 14
Per share (basic and diluted) $0.20 $0.20 $0.20 $0.20
Net cash flows related to operating
activities 93 105 105 115
Cash flows from operations(3) 102 87 114 98

Notes (1), (2) and (3) are identical to those in the table above.

Financial highlights

Boralex recorded $92 million ($105 million) in revenues from energy sales for the second quarter of 2017, up 41% (36%) from the same period of 2016. With these revenues, Boralex increased its EBITDA(A) by 52% (39%) to $57 million ($67 million). As a result, the

Corporation’s EBITDA(A) margin was up four percentage points to 62% from 58% for the same period of 2016 (64% from 63%).

Also, cash flows from operations reached $44 million ($46 million) in the second quarter of 2017 compared with $27 million ($28 million) for the same period of 2016. This increase was largely attributable to the $19 million ($19 million) increase in EBITDA(A).

The Corporation reported a net loss attributable to shareholders of $2 million or $0.02 per share (basic and diluted) for the second quarter of 2017 compared with a loss of $7 million or $0.11 per share (basic and diluted) for the same quarter of 2016. Note that the proportionate consolidation of results had no effect on the net loss.

Outlook

Boralex continues its expansion strategy. By the end of fiscal 2017, four new wind farms will be commissioned in France for an additional installed capacity of 87 MW. Accordingly, at the end of fiscal 2017, Boralex’s installed capacity under its control would amount to 1,456 MW, up 321 MW or 28% compared with the December 31, 2016 level. Note that the Corporation completed its largest ever transaction with the acquisition of the 230 MW Niagara Region Wind Farm in January 2017.

Within its portfolio of projects, the Corporation expects to commission during fiscal 2018 four wind farms in France, one wind farm in Canada and its first hydroelectric power station in Ontario, namely Yellow Falls with an installed capacity of 16 MW, for a total of 120 MW. In 2019, the 50 MW Otter Creek wind power project will be launched in Canada. Boralex acquired a majority interest in this project during the first quarter of 2017.

Once completed, these sites which are currently under development will increase Boralex’s installed capacity to 1,626 MW, which is less than 375 MW below the target of 2,000 MW by the end of 2020. Given the projects that are at an advanced stage of development in France and the initiatives taken elsewhere in Europe and North America, Boralex’s management is confident of achieving this target which represents a compound annual growth rate of about 10%.

At the same time, Boralex continues its expansion strategy in the markets of Alberta and Northeastern United States. In this respect, it announced on July 27, 2017 that it had submitted three different bids with the same wind project for the request for proposals launched on March 31, 2017 by the State of Massachusetts for the supply of renewable energy. The proposed SBx project is a 300 MW power project located on the private land of the Seigneurie de Beaupré, in the Greater Québec City Area. If selected, SBx would represent the fourth phase of the Seigneurie de Beaupré Wind Farms, the largest group of wind farms in Canada which already has an installed capacity of 364 MW. SBx is expected to be entirely developed, financed, built and operated by Boralex and Gaz Métro.

Last, very recently, the Caisse de dépôt et placement du Québec (the “Caisse”) became Boralex’s main shareholder with the acquisition of all the Class A common shares of Boralex held by Cascades Inc., representing 17.3% of the outstanding shares. In connection with this transaction, Boralex and the Caisse in particular agreed to explore partnership opportunities relating to investments in projects to be developed by Boralex, in line with its growth strategy.

Dividend declaration

The Corporation’s Board of Directors has authorized and declared a quarterly dividend of $0.15 per common share to be paid on September 18, 2017 to shareholders of record at the close of business on August 31, 2017. Boralex has designated this dividend as an eligible dividend within the meaning of Section 89.14 of the Income Tax Act (Canada) and all provisions of provincial laws applicable to eligible dividends.

About Boralex

Boralex develops, builds and operates renewable energy power facilities in Canada, France and the United States. A leader in the Canadian market and France’s largest independent producer of onshore wind power, the Corporation is recognized for its solid experience in optimizing its asset base in four power segments — wind, hydroelectric, thermal and solar. Boralex ensures sustained growth with its approach focused on segment and geographic diversification, and over 25 years of expertise. Boralex’s shares and convertible debentures are listed on the Toronto Stock Exchange under the ticker symbols BLX and BLX.DB.A, respectively. More information is available at www.boralex.com or www.sedar.com. Follow us on Facebook, LinkedIn and Twitter.

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For more information:

Media                                                           Investors
Julie Cusson                                                   Marc Jasmin
Director,                                                         Director,
Public Affairs and Communications              Investor Relations
Boralex Inc.                                                    Boralex Inc.
(514) 985-1353                                                 (514) 284-9868
julie.cusson@boralex.com                              marc.jasmin@boralex.com

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