Boralex pursues vigorous execution of its Strategic Plan in the 1st quarter

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Boralex pursues vigorous execution of its Strategic Plan in the 1st quarter

by ahnationtalk on May 11, 202219 Views

Highlights

  • Increases in consolidated operating income and EBITDA(A)1 in first quarter 2022
  • Operating income of $91 million ($105 million)2 for Q1-2022, up 18% (16%) from $77 million ($91 million) in 2021
  • EBITDA(A) of $173 million ($183 million) for Q1-2022, up 14% (13%) from $151 million ($162 million) in 2021
  • Partnership with Energy Infrastructure Partners (EIP) in France
  • Investment agreement signed and closed with EIP for the acquisition of a 30% stake in Boralex’s portfolio of operating assets and projects under development in France (recorded in Boralex’s financial statements as of April 29, 2022).
  • Consideration received by Boralex totaling CAD $717 million4 (€532 million), of which $23 million4 (€17 million) related to the development of the French portfolio. Enterprise value multiple on EBITDA(A) 2021 of 20.3.
  • Significant contractual agreement announced and projects added to the portfolio
  • Boralex, Hydro-Québec and Energir announced on April 19 equal partnership agreement to develop three 400 MW wind projects for a total of 1,200 MW at the Seigneurie de Beaupré site in Quebec.
  • Three wind projects totaling 65 MW selected in the announcement of the latest wind energy call for tender results in France on February 28
  • 348 MW added to the Company’s project portfolio in Q1
  • Increase in cash flows from operations5 and in discretionary cash flows5
    • Cash flow from operations of $136 million for Q1-2022, up $21 million from Q1-2021
  • Net cash flow related to operating activities of $137 million ($144 million) for Q1-2022, up $4 million ($12 million) from Q1-2021.
  • Discretionary cash flow of $77 million, up $17 million or 28% over Q1-2021
  • Production 3% higher (2%) than in Q1-2021 and 4% (4%) above anticipated production3
    • Wind: 2% (1%) higher than in Q1-2021 and 1% (—%) above anticipated production
  • Hydroelectric: 10% higher than in Q1-2021 and 5% above anticipated production
  • Solar: 15% above anticipated production

Montreal, Quebec, May 11, 2022 — Boralex Inc. (“Boralex” or the “Company”) (TSX: BLX) is pleased to report an increase in operating income and ongoing progress on development projects during the first quarter of 2022.

“We were particularly active at the start of the year, as Boralex entered into two major partnerships, one in France and the other in Quebec, which will allow us to accelerate our growth in these high-potential markets. In addition, three projects were selected during a call for tenders in France. These announcements, combined with the strong growth in our results, show that our teams are totally dedicated to implementing our 2025 Strategic Plan,” said Patrick Decostre, Boralex’s President and Chief Executive Officer.

  • EBITDA(A) is a total of sector measures. For more details, see the Non-IFRS financial measures and other financial measures section of this press release.
  • The figures in brackets indicated the results according to the Combined5, compared to those obtained according to the Consolidated.
  • Anticipated Production is an additional financial measure. For more details, see the Non-IFRS financial measures and other financial measures section of this press release.
  • Daily conversion rate of April 28, 2022.
  • Combined, Cash Flow from operations and Discretionary Cash Flows are non-GAAP financial measures and do not have a standardized definition under IFRS. Therefore, 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.

“Several European countries have been grappling with major supply challenges and particularly high price levels in recent months. France is also affected by a historically low production of its nuclear power plants, mainly due to maintenance and corrosion problems affecting certain reactors. Land-based solar and wind farms can be commissioned quickly at low costs and at long-term fixed prices. This strategy would ensure that countries making this a priority would have greater energy independence and long-term price stabilization. With projects totalling 1,830 MW under development or construction in Europe and experienced development teams, Boralex is in an excellent position to contribute to the success of such a strategy and accelerate the implementation of solutions in regions affected by energy problems in Europe,” added Mr. Decostre.

1st quarter highlights

Three-month periods ended March 31

Consolidated Combined 1
(in millions of Canadian dollars, unless otherwise 2022 2021 Change 2022 2021 Change
specified) (unaudited) $ % $ %
Power production (GWh)2 1,681 1,630 51 3 1,875 1,830 45 2
Revenues from energy sales and
feed-in premium 227 206 21 10 248 228 20 9
Operating Income 91 77 14 18 105 91 14 16
EBITDA(A)3 173 151 22 14 183 162 21 13
Net earnings 57 40 17 45 57 45 12 30
Net earnings attributable to
shareholders of Boralex 50 36 14 42 50 41 9 25
Per share – basic and diluted $0.49 $0.34 $0.15 43 $0.49 $0.39 $0.10 26
Net cash flows related to operating
activities 137 133 4 3 144 132 12 9
Cash flows from operations1 136 115 21 17
Discretionary cash flows1 77 60 17 28

In the first quarter of 2022, Boralex produced 1,681 GWh (1,875 GWh) of power, up 3% (2%) over the 1,630 GWh (1,830 GWh) produced in the same quarter of 2021. For the three-month period ended March 31, 2022, revenues from energy sales and feed-in premiums were $227 million ($248 million), up 10% (9%) from Q1-2021, while EBITDA(A) reached $173 million ($183 million), up 14% (13%) from Q1-2021, and operating income was $91 million ($105 million), up 18% (16%) from the same quarter in 2021.

The increase in production stems from the commissioning of French wind farms, the increase in wind production in Canada and the increase in hydroelectric and solar generation in the United States resulting from favourable conditions. The increase in income, EBITDA(A) and operating income mainly stems from the accounting process used for higher energy sales income for sites benefiting from the feed-in premium due to high market prices in France. Given the structure of the feed-in premium contracts for operating farms, the Company is not required to reimburse the difference between the market price and reference price for the feed-in premium when the accumulation of the sums paid by the Company becomes equal to the accumulation of the sums received as a feed-in premium. The increase in production also accounts for a portion of the increase.

For the three months ended March 31, 2022, Boralex posted net earnings of $57 million ($57 million) compared to net earnings of $40 million ($45 million) for the corresponding period in 2021. The net earnings attributable to Boralex shareholders were $50 million ($50 million) or $0.49 per share (basic and diluted), compared to $36 million ($41 million) or $0.34 ($0.39) per share (basic and diluted) for the corresponding period in 2021. The increase in net earnings is attributable to the increase in EBITDA(A).

  1. Combined, Cash Flow from operations and Discretionary Cash Flows are non-GAAP financial measures and do not have a standardized definition under IFRS. Therefore, 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. Power production includes the production for which Boralex received financial compensation following power generation limitations imposed by its clients 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 premium
  3. EBITDA(A) is a total of sector measures. For more details, see the Non-IFRS financial measures and other financial measures section of this press release.

Outlook

On June 17, 2021, Boralex’s management unveiled an updated strategic plan that will guide efforts to achieve its new corporate targets for 2025. Boralex’s 2025 Strategic Plan is built around the four strategic directions of the plan launched in 2019—growth, diversification, customers, and optimization—and six corporate targets. The details of this plan, which also incorporates Boralex’s CSR strategy, are included in the Company’s Annual report.

Highlights of the main achievements of the quarter ended March 31, 2022, in relation to the 2025 Strategic Plan can be found in the 2022 Interim Report 1 available in the Investors section of Boralex’s website.

In the coming quarters, Boralex will continue to work on its various initiatives under this plan, including project development and acquisition target analysis.

To pursue its organic growth, the Company has a pipeline of projects at various stages of development defined on the basis of clearly identified criteria, totalling 3,591 MW in wind and solar projects and 177 MW in energy storage projects, as well as a 699 MW Growth Path in wind and solar projects and 3 MW in 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 June 15, 2022, to shareholders of record at the close of business on May 31, 2022. 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 2.5 GW. We are developing a portfolio of more than 3,5 GW in wind and solar projects and nearly 200 MW in 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, go to www.boralex.com or www.sedar.com.

Read More: https://boralex-global.imgix.net/C_BLX_Q12022_EN1.pdf

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