Highlights of the third quarter of 2020
- Combined EBITDA(A) of
$83 million , up$13 million , 18% higher than in the third quarter of 2019. Discretionary cash flows of$16 million , up$24 million over the third quarter of 2019 - Combined wind power production higher than in the corresponding quarter of 2019 and anticipated
production(1) - Total wind power production: Up 5% vs 2019 and 1% vs anticipated production
- Wind power production in
Canada : Up 10% vs 2019 and up 6% vs anticipated production - Wind power production in
France : Same as 2019 and down 5% vs anticipated production - Progress in the development of projects in the portfolio of projects and in the Growth Path in
France andthe United States - Four projects totalling 47 MW advanced to ready-to-build stage In
France : solar projects Peyrolles (12 MW) and La Clé des Champs (9 MW), along with wind farmsMont de Bézard 2 repowering (24 MW, a 12 MW addition to the capacity at the current wind farm) and Extension Plaine d'Escrebieux (14 MW) - Commissioning of 11 MW wind farm Blanche Fosses on
November 1st - Submissions of 3 solar parks projects totalling 140 MW in
New York State, USA filed for the RFPs issued by theNew York Power Authority (NYPA) in September and theNew York State Energy Research and Development Authority (NYSERDA) in October. Results of the RFPs will be unveiled in 2021. - Increase in financial flexibility and availability of funds for acquisition opportunities and major development projects
- Public offering of common-shares for gross proceed of
$201M completed onAugust 28, 2020 $2.7 billion in total refinancing arrangements in the past year- Net funded debt/total capitalization ratio of 41% compared to 56% at the beginning of the year
- More than
$400 million available on the corporate credit facility - Announcement of
Patrick Decostre appointment to the President and Chief Executive Officer role, effectiveDecember 1 st 2020 and retirement ofPatrick Lemaire
"For the second consecutive quarter, our growth in results stems from increased wind power production in
______________________________ | |
(1) | Anticipated production is calculated using historical averages for older sites adjusted for planned facility commissioning and shutdowns, and production forecasts for the other sites. |
(2) | The figures in brackets show the results on a Combined basis in comparison to those disclosed in accordance with IFRS. See "Combined - Non-IFRS measure" below. |
Regarding the Corporation's outlook,
"Over the past two quarters we have put considerable effort into updating Boralex's Corporate Social Responsibility Plan (CSR) and its positioning with respect to ESG criteria (environment, society and governance). This process is not yet complete, but has already encouraged us to go farther in order to fully contribute to ongoing changes in our industry and value their positive impacts on climate. We also want to go farther on the societal aspect. For example, while we have always promoted the values of inclusion, countering racism and building diversity within the Corporation, we are making new commitments in these areas. In effect, we have announced that we've signed the Diversity Charter in
To that end, Boralex management has decided to include completion of the CSR plan in its 2023 strategic objectives at the same level as its financial objectives. The ten priority issues identified by the Corporation and grouped into three Commitment directions are shown in the Outlook section, in the diagram on page 4 of this press release.
Financial Highlights - Third quarter | ||||||||
For three-month periods ended | ||||||||
IFRS | Combined(1) | |||||||
(in millions of Canadian dollars, unless otherwise specified) (unaudited) | 2020 | 2019 | Change | 2020 | 2019 | Change | ||
$ | % | $ | % | |||||
Power production (GWh)(2) | 789 | 712 | 77 | 11 | 1,017 | 920 | 97 | 10 |
Revenues from energy sales and feed-in premium | 105 | 92 | 13 | 14 | 130 | 113 | 17 | 15 |
EBITDA(A)(1) | 62 | 45 | 17 | 37 | 83 | 70 | 13 | 18 |
Net loss | (8) | (36) | 28 | 78 | (13) | (44) | 31 | 72 |
Net loss attributable to shareholders of Boralex | (6) | (29) | 23 | 81 | (11) | (37) | 26 | 73 |
Per share - basic and diluted | ( | ( | 81 | ( | ( | 76 | ||
Net cash flows related to operating activities | 73 | 58 | 15 | 27 | 66 | 53 | 13 | 26 |
Cash flows from operations(1) | 63 | 35 | 28 | 79 | 58 | 31 | 27 | 84 |
Three-month periods ended | Twelve-month periods ended | |||||||
(in millions of Canadian dollars, unless otherwise specified) (unaudited) | Change | Change | ||||||
2020 | 2019 | $ | % | 2020 | 2019 | $ | % | |
Discretionary cash flows(1) - IFRS | 16 | (8) | 24 | >100 | 148 | 120 | 28 | 23 |
(1) | For more details, see the Non-IFRS Measures section in the Third Quarter 2020 Interim Report available on the websites of Boralex (boralex.com) and SEDAR (sedar.com). |
(2) | The production level for which NRWF wind farm was compensated following power generation limitations imposed by the IESO were included in power production, as management uses this measure to evaluate the Corporation's performance. This change facilitates the correlation between power production and revenues from energy sales and feed-in premium. |
In the 2020 third quarter, Boralex produced 789 GWh (1,017 GWh) of electricity, up 11% (10%) compared to 712 GWh (920 GWh) in the same quarter of 2019. The increase stems from more favorable conditions from the wind and hydro sectors in
For the three-month period ended
For the third quarter of 2020, the Corporation recorded a consolidated EBITDA(A) of
Overall, for the three-month period ended
Financial Highlights for the nine-month periods ended IFRS Combined(1) (in millions of Canadian dollars, unless otherwise specified) (unaudited) 2020 2019 Change 2020 2019 Change $ % $ % Power production (GWh)(2) 3,259 3,005 254 8 4,071 3,866 205 5 Revenues from energy sales and feed-in premium 426 385 41 11 513 475 38 8 EBITDA(A)(1) 297 259 38 15 359 327 32 10 Net earnings (loss) 30 (20) 50 >100 19 (28) 47 >100 Net loss attributable to shareholders of Boralex 29 (13) 42 >100 18 (21) 39 >100 Per share - basic and diluted ( >100 ( >100 Net cash flows related to operating activities 303 236 67 29 318 250 68 27 Cash flows from operations(1) 238 191 47 25 261 212 49 23 As at As at Change As at As at Change $ % $ % Total assets 4,575 4,557 18 — 5,250 5,246 4 — Debt(3) 2,914 3,067 (153) (5) 3,490 3,660 (170) (5) Projects(4) 2,544 2,462 82 3 3,120 3,055 65 2 Corporate 370 605 (235) (39) 370 605 (235) (39)
(1) | See "Combined - Non-IFRS measure" below. |
(2) | The production level for which NRWF wind farm was compensated following power generation limitations imposed by the IESO were included in power production, as management uses this measure to evaluate the Corporation's performance. This change facilitates the correlation between power production and revenues from energy sales and feed-in premium. |
(3) | Includes the current (less than one year) portion of debt and transaction expense, net of accrued amortization. |
(4) | Project loans are normally amortized over the term of the energy contracts for the related sites and are non-recourse loans on Boralex. |
For the nine-month period ended
For the nine-month periods ended
For the nine-month period ended
Overall, for the nine-month period ended
Outlook
In 2019, Boralex's management announced the strategic plan which will steer its actions to achieve its financial objectives for 2023. This plan is a continuation of the actions undertaken to date in sectors with high growth potential and for which the Corporation has developed solid expertise. It also includes supplementary initiatives to diversify and optimize operations and revenue sources.
The plan sets out four main strategic directions and three financial objectives and is based on a rigorous analysis of the market evolution and trends in the renewable energy sector. The plan also reflects the view that a profound and rapid transformation of the industry is under way, driven mainly by many technological innovations.
To successfully implement its strategic plan and achieve its financial objectives, the Corporation relies on its solid expertise in developing small and medium-sized projects, which is a key advantage for seizing opportunities in increasingly competitive markets, particularly the solar power market. Boralex is implementing its strategic plan based on growth potential in the markets in which it operates.
In
In
As at the date of this press release, authorities in
In
In
The Corporation has a portfolio of projects at various stages of development, based on clearly defined criteria, for a total of 2,705 MW and a Growth Path of 278 MW as indicated in the following chart.
To ensure implementation of the strategic plan translates into disciplined growth while creating value for shareholders, Boralex management is monitoring three criteria selected as financial objectives.
For the third quarter, discretionary cash flows were
For the twelve-month period ended
The dividend paid to shareholders over the twelve-month period ended
Lastly, as at
Dividend declaration
The Corporation's Board of Directors has authorized and declared a quarterly dividend of
About Boralex
Boralex develops, builds and operates renewable energy power facilities in
Caution regarding forward-looking statements
Some of the statements contained in this press release, including those regarding future results and performance, the strategic plan, business model and the Corporation's growth strategy, financial objectives and renewable energy production projects in the portfolio or on the Corporation's Growth Path, are forward-looking statements based on current expectations, within the meaning of securities legislation.
The forward-looking statements are based on material assumptions, including the following: assumptions about the performance the Corporation will obtain from its projects, based on management's estimates and expectations with respect to factors related to wind and other factors; opportunities that may arise in the various sectors targeted for growth or diversification; assumptions made about EBITDA(A) margins; assumptions made about the situation in the sector and the economic situation in general, competition and the availability of financing and partners. Although the Corporation believes that these factors and assumptions are reasonable based on the information currently available, they may prove to be inaccurate.
Boralex would like to point out that, by their very nature, forward-looking statements involve risks and uncertainties such that its results or the measure it adopts could differ materially from those indicated by or underlying these statements, or could have an impact on the degree of realization of a particular forward-looking statement. The main factors that could lead to a material difference between the Corporation's actual results and the forward-looking financial information or expectations set forth in the forward-looking statements include the general impact of economic conditions, currency fluctuations, volatility in energy selling prices, the Corporation's financial capacity, competition, changes in general market conditions, the regulations governing the industry, regulatory disputes and other issues related to projects in operation or under development, as well as certain other factors described in the documents filed by the Corporation with the different securities commissions.
Unless otherwise specified by the Corporation, the forward-looking statements do not take into account the possible impact on its activities, transactions, non-recurring items or other exceptional items announced or occurring after the statements are made. There can be no assurance as to the materialization of the results, performance or achievements as expressed or implied by forward- looking statements. The reader is cautioned not to place undue reliance on such forward-looking statements.
Unless required to do so under applicable securities legislation, Boralex management does not assume any obligation to update or revise forward-looking statements to reflect new information, future events or other changes.
The data expressed as a percentage is calculated using amounts in thousands of dollars.
Combined - Non-IFRS measure
The combined information ("Combined") presented above and in the MD&A of the Corporation resulted from the combination of the financial information of
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