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Boralex announces strong growth in power production and financial results in the second quarter of 2019
- Growth in financial results attributable to acquisitions, commissioning of new sites and increased production at existing sites
o Revenues from energy sales totalled $121 million ($148 million)1, up 27% (35%) from the comparable quarter last year
o EBITDA(A) of $83 million ($103 million), up 44% (52%) from the comparable quarter last year
o Discretionary cash flows (AFFO) of $16 million versus $1 million a year earlier
- Significant increase in total power production
- For the quarter: increase of 30% (39%) compared with the same quarter of 2018 and production volume in line with anticipated production2
- First six months of fiscal year: increase of 22% (37%) compared with a year earlier and production volume 1% (5%) higher than anticipated
- High level of activity in project development
- Wind power contracts totalling 68 MW awarded to Boralex in the April Request for Proposals (RFP) in France and submission filed for the August RFP
- Green light from Scottish government for Limekiln Wind Farm (90 MW)
- Faster than expected team deployment and development of potential projects in the U.S. solar power segment
- Strategic plan and new financial objectives announced on June 18, 2019
Montréal, August 8, 2019 – For the three-month period ended June 30, 2019, the results for Boralex Inc. (“Boralex” or the “Corporation”) (TSX: BLX) were higher than for the corresponding period of 2018. Growth in energy revenues, EBITDA(A) and net earnings is attributable to contributions from sites acquired and commissioned in the past 12 months as well as higher revenues from energy sales at existing sites.
“These second quarter results show that we have adopted the right approach in our strategy for growth and diversification in promising segments of the renewable energy sector,” said Patrick Lemaire, President and Chief Executive Officer of Boralex. “In addition to the contribution from sites acquired and commissioned in Canada and France, the improved results stem from significant production increases at our comparable wind farms in Canada and France, and at our hydroelectric power stations.”
Mr. Lemaire continued, stressing Boralex’s strong growth potential in a fast-growing industry. “As we said at our Investor Day on June 18, there is significant development potential in the segments we are targeting going forward and in which we have proven expertise. Our people are quickly preparing the way for the initiatives that will allow us to carry out our strategic plan and achieve our financial objectives. The contracts Boralex recently won in France, the latest developments in Scotland, and the prompt execution by our teams in the U.S. solar segment are all clear examples of this.”
Operational highlights – Second quarter
Boralex’s total power output, including the compensated volume from the Niagara Region Wind Farm (NRWF) in Ontario grew 30% (39%) in the second quarter of 2019 compared with the corresponding quarter last year. This increase was driven by good conditions in the wind and hydroelectric power segments.
In the wind power segment, Canadian wind conditions were favourable in the second quarter, driving a 13% (7%) increase in production volume at existing sites, compared to the same period last year. Including the commissioning of the Moose Lake wind farm on April 4, 2019 and the acquisition of the Invenergy3 interest in five wind farms on September 14, 2018, production volume in the Canadian wind power segment was up 17% (42%) for the second quarter of 2019, compared to the same quarter a year earlier. Production volume was 8% higher than the anticipated volume.
In France, conditions in the second quarter 2019 improved over the comparable quarter of 2018. Production volume at existing wind farms was up 13% compared with the same period last year. Including the commissioning of wind farms since June 30, 2018 and acquisition of the Kallista4 facilities on June 20, 2018, production volume in the wind power sector in France rose 59% to 393 GWh in the second quarter of 2019 compared with a year earlier. This increase was not, however, sufficient to reach the anticipated volume.
Overall, production volumes for the U.S. and Canadian hydroelectric power stations were 32% higher than last year and 18% above anticipated production.
Financial highlights – Second quarter
|For three-month periods ended June 30|
|(in millions of Canadian dollars, unless otherwise specified) (unaudited)||2019||2018||2019||2018|
|Power production (GWh)(2)||1,009||775||1,267||909|
|Revenues from energy sales and feed-in premium||121||95||148||110|
|Net loss attributable to shareholders of Boralex||(13)||(28)||(13)||(28)|
|Per share (basic and diluted)||($0.14)||($0.36)||($0.14)||($0.36)|
|Net cash flows related to operating activities||113||52||124||59|
|Cash flows from operations(1)||55||21||59||26|
- For more details, see the Non-IFRS Measures section in the 2019 Second Quarter interim Report available on the websites of Boralex (boralex.com) and SEDAR (sedar.com).
- GWh for which NRWF wind power site was compensated following power limitations were included in the power production as management considers this measure in its evaluation of the Corporation’s performance. This change facilitates the correlation between power production and revenues from energy sales and feed-in premium.
For the three-month period ended June 30, 2019, revenues from energy sales totalled $121 million ($148 million), up 27% (35%) compared with the corresponding quarter of 2018. Contributions from the assets acquired from Kallista on June 20, 2018 and the sites commissioned over the past 12 months, including the 10 MW Catésis wind farm commissioned during the quarter, resulted in a favourable difference of $15 million ($28 million on a Combined basis including contributions from the interests in five Québec wind farms acquired from Invenergy). For existing wind farms, weather conditions were better compared to last year, resulting in a favourable difference of $12 million ($11 million).
Consolidated EBITDA(A) for the second quarter of 2019 was $83 million ($103 million), up 44% (52%) compared with the corresponding quarter of 2018. The increase stems from the contributions of sites acquired and commissioned during the past year and the increase in production volume at existing sites compared with the past year. The positive impact of IFRS 16 was $4 million.
In the second quarter of 2019, cash flows from operations totalled $55 million ($59 million) up from $21 million ($26 million) for the same period a year earlier. Discretionary cash flows (AFFO) grew to $16 million in the second quarter, compared with $1 million in the corresponding quarter of 2018.
The Corporation recorded a net loss attributable to shareholders of Boralex of $13 million or $0.14 per share (basic and diluted), compared to a net loss attributable to shareholders of Boralex of $28 million or $0.36 per share (basic and diluted) a year earlier. The improvement of $15 million ($0.22 per share, basic and diluted) stems from the increase in EBITDA(A), mitigated by the increase in amortization and financing expenses related to the expansion of the Corporation’s operating base.
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