LONGUEUIL - Innergex Renewable Energy Inc. (TSX: INE) ('Innergex' or the 'Corporation') today released its operating and financial results for the fourth quarter and year ended December 31, 2020.
'I am proud of the work achieved by the Innergex team this year. Successfully managing four projects under construction while developing numerous others, completing two acquisitions, and all while operating 75 sites across four countries is quite an endeavour,' said Michel Letellier, President and Chief Executive Officer of Innergex. 'For more than 30 years, we have been at the forefront of adopting a sustainable business model that balances environmental, social and governance factors. We are pleased to see the investment community finally recognize that this is the best model to benefit our planet. This movement positions Innergex to achieve the substantial growth it projects in the years to come.'
OPERATING PERFORMANCE
Innergex benefits from geographic diversification and the complementarity of hydroelectric, wind and solar power generation.
For the year ended December 31, 2020, Production Proportionate was 97% of the LTA and up 20% over last year. Revenues Proportionate increased 12% compared to last year mainly due to a higher contribution from the hydroelectric power generation segment which posted higher revenues in British Columbia despite curtailment imposed by BC Hydro. The increase is also due to the wind power generation segment due to the Foard City facility commissioned in 2019 and the Production Tax Credits ('PTC') it generated and the Mountain Air Acquisition completed in July 2020, partly offset by lower revenues at the Quebec facilities. The solar power generation segment also contributed to the increase with the commissioning of the Phoebe facility in 2019 and the Salvador Acquisition completed in May 2020. Adjusted EBITDA was up 3% compared to last year at $422.1 million and the Adjusted EBITDA Proportionate increased by 8% at $560.3 million. General and administrative expenses increased by $6.4 million, stemming mainly from an increase in salaries and professional fees to support the Corporation's growth.
In the fourth quarter of 2020, the hydroelectric power generation segment generated $53.9 million in Adjusted EBITDA Proportionate, representing a 48% increase from the $36.5 million generated in the same period last year, mainly due to a higher contribution from the facilities in British Columbia and to higher production at the Quebec facilities. The increase was also due to a higher contribution from the joint ventures' and associates' hydroelectric facilities. Revenues Proportionate for the segment were up 46% at $74.4 million. Production Proportionate was up 56%.
For the three-month period ended December 31, 2020, the wind power generation segment posted $103.2 million in Adjusted EBITDA Proportionate, representing a 5% decrease over the $108.7 million generated in the same period last year. This decrease is mainly attributable to a lower contribution from the joint ventures' and associates' wind facilities mainly from the Shannon and Flat Top facilities. Revenues Proportionate for the segment increased by 1% to $127.0 million. Production Proportionate was up 5%.
The solar power generation segment generated $8.4 million in Adjusted EBITDA Proportionate in the quarter, representing an 8% decrease from the $9.1 million posted in the same period last year due mainly to a lower contribution from the Phoebe solar facility due to lower net selling prices, partly offset by lower operational expenses and by the Salvador Acquisition. Revenues Proportionate for the segment decreased by 8% to $10.0 million. Production Proportionate was up 39%.
Innergex's financial position remains strong and has no material debt maturities prior to 2023. The focus continues to be on developing, acquiring and operating renewable energy facilities that generate sustainable cash flows and provide an attractive risk-adjusted return on invested capital.
The Corporation considers the Payout Ratio of 135% not to represent the current cash-generating capacity.
About Innergex Renewable Energy Inc.
For over 30 years, Innergex has believed in a world where abundant renewable energy promotes healthier communities and creates shared prosperity. As an independent renewable power producer which develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and energy storage facilities, Innergex is convinced that generating power from renewable sources will lead the way to a better world. Innergex conducts operations in Canada, the United States, France and Chile and manages a large portfolio of high-quality assets currently consisting of interests in 75 operating facilities with an aggregate net installed capacity of 2,742 MW (gross 3,694 MW) and an energy storage capacity of 150 MWh, including 37 hydroelectric facilities, 32 wind farms and six solar farms. Innergex also holds interests in 10 projects under development, four of which are under construction, with a net installed capacity of 556 MW (gross 630 MW) and an energy storage capacity of 329 MWh, as well as prospective projects at different stages of development with an aggregate gross capacity totaling 6,875 MW. Its approach to building shareholder value is to generate sustainable cash flows, provide an attractive risk-adjusted return on invested capital and to distribute a stable dividend.
Cautionary Statement Regarding Forward-Looking Information
To inform readers of the Corporation's future prospects, this press release contains forward-looking information within the meaning of applicable securities laws ('Forward-Looking Information'), including the Corporation's projected financial performance, power production, prospective projects, successful development, construction and financing (including tax equity funding) of the projects under construction and the advanced-stage prospective projects, sources and impact of funding, project acquisitions, execution of non-recourse project-level financing (including the timing and amount thereof), and strategic, operational and financial benefits and accretion expected to result from such acquisitions, business strategy, future development and growth prospects (including expected growth opportunities under the Strategic Alliance with Hydro-Quebec), business integration, governance, business outlook, objectives, plans and strategic priorities, and other statements that are not historical facts. Forward-Looking Information can generally be identified by the use of words such as 'approximately', 'may', 'will', 'could', 'believes', 'expects', 'intends', 'should', 'would', 'plans', 'potential', 'project', 'anticipates', 'estimates', 'scheduled' or 'forecasts', or other comparable terms that state that certain events will or will not occur. It represents the projections and expectations of the Corporation relating to future events or results as of the date of this press release.
Forward-Looking Information includes future-oriented financial information or financial outlook within the meaning of securities laws, including information regarding the Corporation's expected production, the estimated project costs, projected revenues, projected Adjusted EBITDA and projected Adjusted EBITDA Proportionate, Projected Free Cash Flow, Projected Free Cash Flow per Share and intention to pay dividend quarterly, the estimated project size, costs and schedule, including obtainment of permits, start of construction, work conducted and start of commercial operation for Development Projects and Prospective Projects, the Corporation's intent to submit projects under Requests for Proposals, the qualification of U.S. projects for PTCs and ITCs and other statements that are not historical facts. Such information is intended to inform readers of the potential financial impact of expected results, of the expected commissioning of Development Projects, of the potential financial impact of completed and future acquisitions and of the Corporation's ability to sustain current dividends and to fund its growth. Such information may not be appropriate for other purposes.
Forward-looking Information is based on certain key assumptions made by Innergex, including, without restrictions, assumptions concerning project performance, economic, financial and financial market conditions, expectations and assumptions concerning availability of capital resources and timely performance by third-parties of contractual obligations, receipt of regulatory approvals and the divestiture of select assets. Although Innergex believes that the expectations and assumptions on which such forward-looking information is based are reasonable, under the current circumstances, readers are cautioned not to rely unduly on this forward-looking information as no assurance can be given that they will prove to be correct. The forward-looking information contained in this press release is made as of the date hereof and Innergex does not undertake any obligation to update or revise any forward-looking information, whether as a result of events or circumstances occurring after the date hereof, unless so required by law.
Cautionary Statement Regarding Non-IFRS measures
The audited consolidated financial statements for the three- and twelve-month periods ended December 31, 2020, have been prepared in accordance with International Financial Reporting Standards ('IFRS'). However, some measures referred to in this press release are not recognized measures under IFRS and therefore may not be comparable to those presented by other issuers. Innergex believes that these indicators are important, as they provide management and the reader with additional information about the Corporation's production and cash generation capabilities, its ability to sustain current dividends and dividend increases and its ability to fund its growth. These indicators also facilitate the comparison of results over different periods. Innergex's share of Revenues of joint ventures and associates, Revenues Proportionate, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Proportionate, Adjusted EBITDA Proportionate Margin, Innergex's share of Adjusted EBITDA of joint ventures and associates, Adjusted net Earnings (Loss) from Continuing Operations, Free Cash Flow, Adjusted Free Cash Flow, Payout Ratio and Adjusted Payout Ratio are not measures recognized by IFRS and have no standardized meaning prescribed by IFRS. Please refer to the 'Non-IFRS Measures' section of the Management's Discussion and Analysis for the three- and twelve-month periods ended December 31, 2020.
Contact:
Jean-Francois Neault
Tel: 450 928.2550
Email: investorrelations@innergex.com
INNERGEX RENEWABLE ENERGY INC. 
