MONTRÉAL, Aug. 9, 2017 /CNW
Telbec/ - Boralex Inc. ("Boralex" or the "Corporation") (TSX:
BLX) recorded increases in production, revenues from energy sales
and EBITDA(A) for the three-month period ended June 30, 2017, compared with the second quarter
of 2016.
"We're extremely proud of these results which underscore the
merits of our expansion strategy," pointed out Patrick Lemaire, Boralex's President and Chief
Executive Officer. "What's more, thanks to our approach focused on
segment and geographic diversification of our sites, the good
performance of wind farms in Canada and hydroelectric power stations in
the United States more than
compensated the less favourable conditions for French wind farms
and Canadian hydroelectric power stations."
Operational highlights
Note: The figures in brackets below show results under
proportionate consolidation compared with the results under
IFRS.
Boralex generated 744 GWh (863 GWh) of electricity in the second
quarter of 2017, up 31% (27%) from the same period of 2016. This
increase stemmed largely from the contribution of sites acquired
and commissioned after June 30, 2016,
representing an installed capacity of 274 MW.
Excluding the contribution of these sites, the production at
existing facilities rose 7% (7%), driven primarily by the improved
performance at U.S. hydroelectric power stations which benefited
from better water flow conditions during the last quarter,
offsetting the lower production of French wind farms and Canadian
hydroelectric power stations. Note that weather conditions are
generally less favourable for the wind power segment in the second
quarter.
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FINANCIAL
HIGHLIGHTS
|
Three-month
periods ended June 30
|
(in millions of
dollars, unless otherwise specified)
|
2017
|
2016
|
2017
|
2016
|
IFRS
|
Proportionate
consolidation(1)
|
Production
(GWh)
|
744
|
566
|
863
|
678
|
Revenues from energy
sales
|
92
|
65
|
105
|
77
|
EBITDA(A)(2)
|
57
|
38
|
67
|
48
|
EBITDA(A) margin
(%)
|
62
|
58
|
64
|
63
|
Net loss
|
(7)
|
(7)
|
(7)
|
(7)
|
Net loss attributable
to shareholders of Boralex
|
(2)
|
(7)
|
(2)
|
(7)
|
Per share (basic and
diluted)
|
$(0.02)
|
$(0.11)
|
$(0.02)
|
$(0.11)
|
Net cash flows
related to operating activities
|
38
|
29
|
43
|
33
|
Cash flows from
operations(3)
|
44
|
27
|
46
|
28
|
|
|
|
|
|
|
|
(1)
|
These amounts are
adjusted on a proportionate consolidation basis; a non-IFRS
measure. See the Reconciliations between IFRS and Proportionate
Consolidation and Non-IFRS Measures sections in the
Interim Report available on the websites of Boralex (boralex.com)
and SEDAR (sedar.com).
|
(2)
|
EBITDA(A) consists of
earnings before interest, taxes, amortization and depreciation,
adjusted to include other items. For more details, see the
Non-IFRS Measures section in the Interim Report available on
the websites of Boralex (boralex.com) and SEDAR
(sedar.com).
|
(3)
|
This is a non-IFRS
measure. For more details, see the Non-IFRS Measures section
in the Interim Report available on the websites of Boralex
(boralex.com) and SEDAR (sedar.com).
|
|
|
FINANCIAL
HIGHLIGHTS
|
Six-month periods
ended June 30
|
(in millions of
dollars, unless otherwise specified)
|
2017
|
2016
|
2017
|
2016
|
IFRS
|
Proportionate
consolidation(1)
|
Production
(GWh)
|
1,653
|
1,387
|
1,926
|
1,651
|
Revenues from energy
sales
|
211
|
171
|
240
|
199
|
EBITDA(A)(2)
|
144
|
118
|
165
|
138
|
EBITDA(A) margin
(%)
|
68
|
69
|
69
|
70
|
Net
earnings
|
9
|
16
|
9
|
16
|
Net earnings
attributable to shareholders of Boralex
|
15
|
14
|
15
|
14
|
Per share (basic and
diluted)
|
$0.20
|
$0.20
|
$0.20
|
$0.20
|
Net cash flows
related to operating activities
|
93
|
105
|
105
|
115
|
Cash flows from
operations(3)
|
102
|
87
|
114
|
98
|
|
|
|
|
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Notes (1), (2) and
(3) are identical to those in the table above.
|
Financial highlights
Boralex recorded $92 million
($105 million) in revenues from
energy sales for the second quarter of 2017, up 41% (36%) from the
same period of 2016. With these revenues, Boralex increased its
EBITDA(A) by 52% (39%) to $57 million
($67 million). As a result, the
Corporation's EBITDA(A) margin was up four percentage points to 62%
from 58% for the same period of 2016 (64% from 63%).
Also, cash flows from operations reached $44 million ($46
million) in the second quarter of 2017 compared with
$27 million ($28 million) for the same period of 2016. This
increase was largely attributable to the $19
million ($19 million) increase
in EBITDA(A).
The Corporation reported a net loss attributable to shareholders
of $2 million or $0.02 per share (basic and diluted) for the
second quarter of 2017 compared with a loss of $7 million or $0.11
per share (basic and diluted) for the same quarter of 2016. Note
that the proportionate consolidation of results had no effect on
the net loss.
Outlook
Boralex continues its expansion strategy. By the end of fiscal
2017, four new wind farms will be commissioned in France for an additional installed capacity of
87 MW. Accordingly, at the end of fiscal 2017, Boralex's installed
capacity under its control would amount to 1,456 MW, up 321 MW
or 28% compared with the December 31,
2016 level. Note that the Corporation completed its largest
ever transaction with the acquisition of the
230 MW Niagara Region Wind Farm in January 2017.
Within its portfolio of projects, the Corporation expects to
commission during fiscal 2018 four wind farms in France, one wind farm in Canada and its first hydroelectric power
station in Ontario, namely Yellow
Falls with an installed capacity of 16 MW, for a total of 120 MW.
In 2019, the 50 MW Otter Creek wind power project will be launched
in Canada. Boralex acquired a
majority interest in this project during the first quarter of
2017.
Once completed, these sites which are currently under
development will increase Boralex's installed capacity to 1,626 MW,
which is less than 375 MW below the target of 2,000 MW by the end
of 2020. Given the projects that are at an advanced stage of
development in France and the
initiatives taken elsewhere in Europe and North
America, Boralex's management is confident of achieving this
target which represents a compound annual growth rate of about
10%.
At the same time, Boralex continues its expansion strategy in
the markets of Alberta and
Northeastern United States. In
this respect, it announced on July 27,
2017 that it had submitted three different bids with the
same wind project for the request for proposals launched on
March 31, 2017 by the State of Massachusetts for the supply of
renewable energy. The proposed SBx project is a 300 MW power
project located on the private land of the Seigneurie de Beaupré,
in the Greater Québec City Area. If selected, SBx would represent
the fourth phase of the Seigneurie de Beaupré Wind Farms, the
largest group of wind farms in Canada which already has an installed capacity
of 364 MW. SBx is expected to be entirely developed, financed,
built and operated by Boralex and Gaz Métro.
Last, very recently, the Caisse de dépôt et placement du Québec
(the "Caisse") became Boralex's main shareholder with the
acquisition of all the Class A common shares of Boralex held by
Cascades Inc., representing 17.3% of the outstanding shares.
In connection with this transaction, Boralex and the Caisse in
particular agreed to explore partnership opportunities relating to
investments in projects to be developed by Boralex, in line with
its growth strategy.
Dividend declaration
The Corporation's Board of Directors has authorized and declared
a quarterly dividend of $0.15 per
common share to be paid on September 18,
2017 to shareholders of record at the close of business on
August 31, 2017. Boralex has
designated this dividend as an eligible dividend within the meaning
of Section 89.14 of the Income Tax Act (Canada) and all provisions of provincial laws
applicable to eligible dividends.
About Boralex
Boralex develops, builds and operates renewable energy power
facilities in Canada, France 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
segments — wind, hydroelectric, thermal and solar. Boralex ensures
sustained growth with its approach focused on segment and
geographic diversification, and over 25 years of expertise.
Boralex's shares and convertible debentures are listed on the
Toronto Stock Exchange under the ticker symbols BLX and BLX.DB.A,
respectively. 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, are
forward-looking statements based on current expectations, within
the meaning of securities legislation. Boralex would like to point
out that, by their very nature, forward-looking statements involve
risks and uncertainties such that its results or the measures 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 projection. The main factors that
could lead to a material difference between the Corporation's
actual results and the projections or expectations set forth in the
forward- looking statements include, but are not limited to, the
general impact of economic conditions, currency fluctuations,
volatility in the selling price of energy, the Corporation's
financing capacity, negative changes in general market conditions
and regulations affecting the industry, raw material price
increases and availability, as well as other factors discussed in
the Corporation's filings with the various 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.
Non-IFRS measures
The interim report contains a "Non-IFRS Measures" section. In
order to assess the performance of its assets and reporting
segments, Boralex uses EBITDA(A) and cash flows from operations as
performance measures under IFRS and proportionate consolidation.
EBITDA(A) represents earnings before interest, taxes, depreciation
and amortization, adjusted to include other items. Cash flows from
operations are equal to net cash flows related to operating
activities before change in non-cash items related to operating
activities.
Management believes that these measures are widely accepted
financial indicators used by investors to assess the operational
performance of a company and its ability to generate cash through
operations. These non-IFRS measures are derived primarily from the
unaudited interim consolidated financial statements, but do not
have a standardized meaning under IFRS; accordingly, they may not
be comparable to similarly named measures used by other
companies.
Proportionate consolidation
The interim report also contains a section entitled,
"Reconciliations between IFRS and Proportionate Consolidation," in
which the results of Joint Ventures 50% owned by Boralex are
treated as if they were proportionately consolidated instead of
being accounted for using the equity method as required by IFRS.
Under proportionate consolidation, which is no longer permitted in
accordance with IFRS, the items Interests in the Joint Ventures and
Share in earnings (loss) of the Joint Ventures are eliminated and
replaced by Boralex's share (50%) in all items in the financial
statements (revenues, expenses, assets and liabilities). Since the
information that Boralex uses to perform internal analyses and make
strategic and operating decisions is compiled on a proportionate
consolidation basis, management has considered it relevant to
include the "Proportionate Consolidation" section to make it easier
for investors to understand the concrete impacts of decisions made
by the Corporation. Accordingly, tables included in this section
reconcile IFRS data with data presented on a proportionate
consolidation basis.
SOURCE Boralex Inc.