Montreal - Boralex Inc. ('Boralex' or the 'Company') (TSX: BLX) is pleased to report an increase in operating income and significant progress on certain development projects during the quarter ended September 30, 2021.
Highlights
Increases in operating income and EBITDA(A)1 in Q3-2021 Operating income of $7 million ($13 million)2 , up 112% (7%) from $3 million ($12 million) in Q3-2020 EBITDA(A) of $81 million ($93 million), up 31% (12%) from $62 million ($83 million) in Q3-2020
Substantial growth in the project pipeline Bids for 800 MW of solar projects in New York State submitted in late August Projects totalling 103 MW added to the 'Early-stage' phase of the project pipeline Two projects totalling 33 MW advanced to the 'Secured' phase of the Growth Path
Optimization of capital structure and first sustainable financing (ESG criteria) Renewal and extension of the corporate credit facility and letter of credit facility totalling $525 million for a remaining term of 5 years with sustainable financing (ESG criteria) and a $150 million accordion
Production 40% (22%) higher than in Q3-2020 and 7% (7%) below anticipated production3 Wind: 20% (3%) higher than in Q3-2020 and 11% (10%) below anticipated production Hydroelectric: 42% higher than in Q3-2020 and 21% above anticipated production Solar: 10% below anticipated production
Increase in cash flows from operations and decreases in net and discretionary cash flows Net cash flow related to operating activities of $47 million ($42 million) for Q3-2021, down $26 million ($24 million) from Q3-2020 Cash flow from operations of $66 million for Q3-2021, up $3 million from Q3-2020 Discretionary cash flow of $21 million, down $5 million from Q3-2020
'Our operating income continued to grow in the third quarter. The impact of last year's acquisitions and commissionings and favourable hydraulic conditions in the eastern United States more than compensated for less favourable wind conditions in Canada and France than in the third quarter of 2020,' said Patrick Decostre, President and Chief Executive Officer of Boralex. 'Apart from the financial results, a highlight for the quarter was the submission of bids for 800 MW of projects under the most recent NYSERDA request for proposals in New York State. We expect to learn the outcome of the bidding process in the coming months. We are also proud to have closed our first sustainable financing recently and to have moved forward with the execution of our corporate social responsibility (CSR) plan,' Mr. Decostre added.
Regarding the outlook for the Company, Mr. Decostre said: 'We continue to work on advancing our projects and on prospecting for new projects in Europe and North America to add to our project pipeline. In the coming quarters, we will continue to assess potential acquisitions and work on a range of initiatives in connection with our 2025 Strategic Plan, including optimizing our capital structure and executing our CSR strategy. Our second CSR report will be issued in February 2022
In the third quarter of 2021, Boralex produced 1,108 GWh (1,238 GWh) of power, 40% (22%) more than the 789 GWh (1,017 GWh) produced in the same quarter of 2020. For the three-month period ended September 30, 2021, revenues from energy sales were $126 million ($140 million), up 20% (8%) from Q3-2020, while EBITDA(A)1 was $81 million ($93 million), up 31% (12%) from Q3-2020, and operating income was $7 million ($13 million), up 112% (7%) from the same quarter in 2020.
The increases in production, revenues, EBITDA(A)1 and operating income are attributable to the recent acquisitions in the Quebec wind segment and the United States solar segment, the commissioning of wind farms in France and increased production at hydroelectric stations in the United States owing to particularly favourable conditions during the quarter. For the three-month period ended September 30, 2021, Boralex reported a net loss of $22 million ($22 million) compared to a net loss of $8 million ($13 million) for the same period in 2020. The increase in the loss is attributable to the addition of amortization and financing costs related to acquisitions and commissionings.
During the nine-month period ended September 30, 2021, Boralex produced 4,061 GWh (4,554 GWh) of power, 25% (12%) more than the 3,259 GWh (4,071 GWh) produced in the same period of fiscal 2020. Revenues from energy sales for the period amounted to $479 million ($532 million), up $53 million ($19 million) or 12% (4%) from the same period in 2020, while EBITDA(A)1 was $338 million ($372 million), $41 million ($13 million) or 14% (4%) higher than last year. The increases in production, revenues from energy sales and EBITDA(A) are attributable to acquisitions and commissionings, as discussed in the analysis of the quarterly results.
Operating income totaled $109 million ($137 million), $3 million ($12 million) lower than in the same period in 2020 due to amortization and operating cost increases that exceeded the increase in revenues from energy sales and feed-in premium. Overall, for the nine-month period ended September 30, 2021, Boralex reported net earnings of $8 million ($12 million) compared to net earnings of $30 million ($19 million) for the same period in fiscal 2020. The decrease is primarily attributable to the addition of amortization, acquisition and financing costs related to project acquisitions and commissioning, as well as the reduction of the useful lives of assets at sites undergoing equipment replacement (repowering
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 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.
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 Company's strategic plan, business model and growth strategy, organic growth and growth through mergers and acquisitions, obtaining an investment grade credit rating by 2025, maintaining a quarterly dividend of $0.165 per share, the Company's financial targets and portfolio of renewable energy projects, the Company's Growth Path 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 Company'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 Company considers these factors and assumptions to be reasonable, based on the information currently available to the Company, 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 Company'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 Company's financing capacity, competition, changes in general market conditions, industry regulations, litigation and other regulatory issues related to projects in operation or under development, as well as other factors listed in the Company's filings with the various securities commissions. Unless otherwise specified by the Company, 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 Company'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
Contact:
Isabelle Fontaine
Tel: 819 345-0043
Email: isabelle.fontaine@boralex.com
BORALEX INC. 
