For the three-month period ended September 30, 2020, Boralex Inc. ('Boralex' or the 'Corporation') (TSX: BLX) recorded energy sales of $105 million ($130 million (2)), up 14% (15%) over the corresponding quarter of 2019.
The Corporation's EBITDA(A) rose 37% (18%) over the third quarter of 2019. 'For the second consecutive quarter, our growth in results stems from increased wind power production in Canada and operational and financial optimization initiatives put in place over the past year,' said Patrick Lemaire, President and Chief Executive Officer of Boralex. 'During the quarter, our teams were able to make up for lost construction time and commission our Blanches Fosses wind farm in France as scheduled before COVID-19. Our development teams were also very active, submitting three solar park projects in the United States and advancing four projects to the ready-tobuild stage in France.'
Regarding the Corporation's outlook, Mr. Lemaire added, 'we're actively seeking growth opportunities in our target markets, especially in North America. We also see encouraging signs of recovery in wind power development in Quebec, following, among other things, the adoption of new rules with respect to imports from Quebec for the New York State market.' '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 France, and that in North America we have made a commitment to countering racism against First Nations peoples through the group Mouvement EnsembleInc, an initiative by business leaders in Quebec to make concrete contributions to diversity and inclusion. These examples show that we want to go beyond renewable energy,' said Patrick Decostre, Vice President and Chief Operating Officer. 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.
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 Europe, France's wind power market could grow 1.85 GW per year to 2028; the ground-mounted solar segment also has strong growth potential, with a government-targeted additional capacity of about 2 GW per year by 2028, according to France's Pluriannual Energy Program published on April 23, 2020. In 2020, this target was 1.3 GW per year for wind power and 1 GW for solar power. In North America, in the USA, the New York State Green New Deal is targeting an increase in solar power development from 1.7 GW in 2019 to 6 GW in 2023, which is more than 1 GW per year on average. This market has been targeted by Boralex for its future development, in keeping with the strategic diversification as indicated in the chart above. As at the date of this press release, authorities in France and New York State have maintained their long-term objectives despite the short-term impact of the COVID-19 pandemic on ongoing operations. Like Boralex, these authorities began implementing continuity plans in early March. May and June saw the gradual return of economic activity in France and various levels of government noted that they plan to use renewable energy as an important component of their recovery. In Quebec, premier Francois Legault recently said that wind power is competitive and that the next energy projects to be developed in this province should be in the wind power sector. In New York State, work recently started again on projects in the field. In this market, actions have been proposed to accelerate the role renewable energy plays in New York's economic recovery. Furthermore, the New York State governor has repeatedly said that he wants to ramp up development in the renewable energy sector and ease certain measures in order to achieve targets. Also, a recently issued White Paper on renewable energy says that in order to achieve New York's 2030 targets, renewable energy levels should be 40% higher than is currently provided for in the calls for proposals for 2021-2026. An Issue Order was also issued recently favoring exports from Quebec to the State of New York. This should positively impact the development of wind projects in Quebec, namely the 200 MW project Apuiat. In Canada, economic activity is gradually recovering, to different degrees in each province. Governments are preparing their recovery plans but no official plan has yet been announced. In France, Boralex was awarded wind power projects totaling 43 MW and solar power projects equal to 21 MW since the beginning of the year. The July call for tenders was completed as scheduled, although a portion of the volume was postponed to November. A 71 MW project bid by Boralex in the July call for tenders has not been selected. However, Boralex bid this project in the November call for tenders. In New York State, the results of the 2019 call for tenders for solar power were announced in March 2020. Boralex was selected for all the projects it submitted, for a total of 180 MW. The next call for tenders slated for the summer was postponed to October 2020. Boralex bid 3 solar projects totaling 140 MW in this call for tenders. The Corporation also bid these project in the september call for tenders of NYPA. 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.
About Boralex
Boralex develops, builds and operates renewable energy power facilities in Canada, France, the United Kingdom 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 generation types-wind, hydroelectric, thermal and solar. Boralex ensures sustainable growth by leveraging the expertise and diversification developed for 30 years. Boralex's shares are listed on the Toronto Stock Exchange under the ticker symbol BLX. More information is available at www.boralex.com or www.sedar.com. Follow us on Facebook, LinkedIn and Twitter.
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 forwardlooking 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.
Contact:
Tel: 819-345-0043
Email: isabelle.fontaine@boralex.com
BORALEX INC. 
