Highlights
- Growth in revenues from energy sales and EBITDA(A)
attributable to acquisitions, commissioning of new sites and
increased production at comparable sites
-
- Revenues from energy sales totalled $92
million ($113
million)(1), up 16% (22%) from the comparable
quarter last year
- EBITDA(A) of $45 million
($70 million), up 16% (39%) from the
comparable quarter last year
- Total power production up sharply from last year and in line
with anticipated production(2) for the first nine months
of the year
-
- For the quarter: increase of 21% (28%) compared to 2018 and
production volume 11% (10%) lower than anticipated
- For the first nine months of fiscal year: increase of 22% (34%)
compared with a year earlier and volume in line with anticipated
production
- Wind projects added to the Growth Path, capacity upgrade at
a hydroelectric power station and ramped-up development in the U.S.
solar power segment
-
- Wind projects totalling 27 MW added to the Corporation's Growth
Path since the start of the year
- Wind power contracts totalling more than 100 MW of installed
capacity awarded to Boralex since the beginning of the year under
the April and August requests for proposals
- Submission for solar power projects representing an installed
capacity of 180 MW filed for the September request for proposals in
the State of New York in the
U.S.
- On October 17, repowering of the
Buckingham power station with an
installed capacity of 20 MW, versus 10 MW before the upgrade
___________________________________________
|
(1)
|
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.
|
(2)
|
Anticipated
production is calculated using historical averages for older sites
adjusted for planned facility commissioning and shutdowns, and
production forecasts for the other sites.
|
MONTREAL, Nov. 7, 2019 /PRNewswire/ - For the three-month
period ended September 30, 2019,
Boralex Inc. ("Boralex" or the "Corporation") (TSX: BLX) recorded
an increase in energy revenues and EBITDA(A) attributable to
contributions from sites acquired and commissioned in the past 12
months as well as higher revenues from energy sales at comparable
sites.
"The sites acquired and commissioned in the past twelve months
have again made a substantial contribution to our quarterly
results," said Patrick Lemaire,
President and Chief Executive Officer of Boralex. "Since the
beginning of the fiscal year, our comparable sites have also done
well, with total production up over last year and in line with
anticipated production."
Mr. Lemaire continued, stressing the importance of the
deployment of the Corporation's portfolio of projects. "The
sustained efforts by our development teams are achieving results.
We've added projects equivalent to 27 MW to the Corporation's
Growth Path and we've been awarded wind power projects totalling
more than 100 MW under requests for proposals since the start of
the year," he noted. "We're also waiting to hear the results of our
submissions for projects totalling 180 MW filed in September 2019 under a request for proposals in
the United States."
Financial
highlights - Third quarter
|
For three-month
periods ended September 30
|
|
|
|
|
|
|
IFRS
|
Combined(1)
|
(in millions of
Canadian dollars, unless otherwise specified)
(unaudited)
|
2019
|
2018
|
2019
|
2018
|
Power production
(GWh)(2)
|
712
|
590
|
920
|
721
|
Revenues from energy
sales and feed-in premium
|
92
|
79
|
113
|
93
|
EBITDA(A)(1)
|
45
|
39
|
70
|
51
|
Net loss
|
(36)
|
(37)
|
(44)
|
(37)
|
Net loss attributable
to shareholders of Boralex
|
(29)
|
(31)
|
(37)
|
(31)
|
Per share (basic and
diluted)
|
($0.32)
|
($0.40)
|
($0.41)
|
($0.40)
|
Net cash flows
related to operating activities
|
58
|
17
|
54
|
10
|
Cash flows from
operations(1)
|
35
|
23
|
31
|
15
|
|
|
(1)
|
For more details, see
the Non-IFRS Measures section in the 2019 Third Quarter interim
Report available on the websites of Boralex (boralex.com) and SEDAR
(sedar.com).
|
(2)
|
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 2019 third quarter, production rose to 712 GWh (920 GWh),
up 21% (28%) compared to 590 GWh (721 GWh) for the corresponding
quarter of 2018. Excluding the contribution from sites commissioned
during the past year, production at comparable sites grew 9% (7%),
driven by better results in both the wind and hydroelectric power
segments. In France, wind
conditions were more favourable during the third quarter of 2019
compared to the same period a year earlier and production volume at
comparable wind farms was up 30% over the previous year. In
Canada, wind conditions were not
as good as last year, leading to a 9% (7%) decrease in production
volume at comparable wind power sites.
For the quarter, power production was 11% (10%) lower than
anticipated, attributable to the wind power segments in
France and Canada and the hydroelectric power segment.
Note, however, that for the first nine months of the fiscal year,
power production is in line with anticipated production.
For the three-month period ended September 30, 2019, revenues from energy sales
totalled $92 million ($113 million), up $13
million ($20 million) or 16%
(22%) compared to results for the corresponding quarter of 2018.
This increase is attributable to both the expansion of the
Corporation's operating base since July 1,
2018 and to higher production from the wind farms in
France given that wind conditions
were better than in the corresponding quarter in 2018.
For the third quarter of 2019, the Corporation recorded
consolidated EBITDA(A) of $45 million
($70 million), up $6 million ($19
million) or 16% (39%) compared to the corresponding quarter
of 2018. The increase stems from higher revenues from energy sales,
as noted above.
Overall, for the three-month period ended September 30, 2019, Boralex recorded a net loss
of $36 million ($44 million), versus a net loss of $37 million for the corresponding period of 2018.
As shown in the above table, this resulted in a net loss
attributable to shareholders of Boralex of $29 million ($37
million) or $0.32 ($0.41) per share (basic and diluted), compared
to a net loss attributable to shareholders of Boralex of
$31 million or $0.40 per share (basic and diluted) a year
earlier.
Financial
highlights for the nine-month period ended September
30
|
For nine-month
periods ended September 30
|
|
|
|
|
|
|
IFRS
|
Combined(1)
|
(in millions of
Canadian dollars, unless otherwise specified)
(unaudited)
|
2019
|
2018
|
2019
|
2018
|
Power production
(GWh)(2)
|
3,005
|
2,462
|
3,866
|
2,875
|
Revenues from energy
sales and feed-in premium
|
385
|
326
|
475
|
371
|
EBITDA(A)(1)
|
259
|
200
|
327
|
233
|
Net loss
|
(20)
|
(47)
|
(28)
|
(47)
|
Net loss attributable
to shareholders of Boralex
|
(13)
|
(39)
|
(21)
|
(39)
|
Per share (basic and
diluted)
|
($0.15)
|
($0.51)
|
($0.24)
|
($0.51)
|
Net cash flows
related to operating activities
|
236
|
179
|
251
|
182
|
Cash flows from
operations(1)
|
191
|
121
|
212
|
125
|
|
|
|
|
|
|
As at Sep
30,
|
As at Dec
31,
|
As at Sep
30,
|
As at Dec
31,
|
Total
assets
|
4,679
|
4,776
|
5,350
|
5,434
|
Debt, including
non-current debt and current portion of debt
|
3,132
|
3,271
|
3,702
|
3,855
|
|
|
(1)
|
For more details, see
the Non-IFRS Measures section in the 2019 Third Quarter interim
Report available on the websites of Boralex (boralex.com) and SEDAR
(sedar.com).
|
(2)
|
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.
|
For the nine-month period ended September
30, 2019, production rose to 3,005 GWh (3,866 GWh), an
increase of 22% (34%) compared to 2,462 GWh (2,875 GWh) for the
corresponding period in 2018. Excluding the contribution from sites
acquired or commissioned, production at comparable sites grew 6%,
driven by better results in both the wind and hydroelectric power
segments. Comparable wind power sites recorded better results in
both France and Canada, with production volume up 4% (5%) for
the first nine months of 2019 compared to the previous year.
For the first nine months of 2019, revenues from energy sales
totalled $385 million ($475 million), an increase of $59 million ($104
million) or 18% (28%) compared to the corresponding period
of 2018. This growth is mainly attributable to the increase from
the contribution of wind farms acquired and commissioned since the
start of fiscal 2018 and higher production volumes from comparable
assets in both the wind and hydroelectric power segments.
For the first nine months of 2019, consolidated EBITDA(A)
totalled $259 million ($327 million), up $59
million ($94 million) or 29%
(40%) compared to the corresponding period of 2018. This increase
stems mainly from higher revenues from energy sales, as noted
above. Other items that had a favourable impact include the coming
into force of IFRS 16 - Leases, for $9
million ($10 million).
For the first nine months of 2019, Boralex recorded a net loss
of $20 million ($28 million) versus a net loss of $47 million for the same period a year earlier.
The net loss attributable to shareholders of Boralex was thus
$13 million ($21 million) or $0.15 ($0.24) per
share (basic and diluted), compared to a net loss attributable to
shareholders of Boralex of $39
million or $0.51 per share
(basic and diluted) a year earlier. The favourable difference of
$26 million ($18 million) or $0.36 ($0.27) per
share (basic and diluted) compared to the first nine months of 2018
is explained by the aggregate effect of the items discussed
above.
Outlook
On June 18, 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 complementary 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.
STRATEGIC PLAN AT
A GLANCE
|
Strategic
directions
|
Financial
objectives for 2023
|
Growth Continue development activities in the European and
North American markets, where the Corporation is already active and
which offer high growth potential for renewable
energies.
Diversification Strengthen our presence in the solar power sector and
participate in developing the energy storage market.
Customers Adopt new business models directly targeting
electricity- consuming companies for the sale of energy and the
provision of complementary services.
Optimization Maximize synergies and optimize operational costs and
diversify our sources of financing.
|
Discretionary cash
flows Generate
discretionary cash flows of $140 million to $150 million in 2023
which will represent annual compound growth of about 20% for the
2018-2023 period.
Dividend Pay an ordinary dividend equivalent to a dividend
payout ratio of 40% to 60% of discretionary cash flows.
Installed
capacity Develop a
portfolio of energy assets to achieve a gross installed capacity
managed by the Corporation of over 2,800 MW in 2023.
|
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 the growth
potential in the markets in which it operates. The wind power
segment remains its top growth vector, accounting for 88% of
Boralex's installed capacity as at September
30, 2019. Based on the analyses performed, this segment
represents a total market potential of 10,875 MW for the
Corporation while its portfolio of projects at various stages of
development total 2,375 MW. The potential market for the solar
power segment amounts to about 20,000 MW. The Corporation intends
to substantially strengthen its presence in this segment while its
current project portfolio in this segment amounts to a total of 630
MW.
Since the end of the three-month period ended September 30, 2019, the work to expand the
capacity of the Buckingham
hydroelectric power station was completed and the station, which
now has an installed capacity of 20 MW (double the station's 10 MW
before the upgrade) was repowered on October
17, 2019. This commissioning raises total installed capacity
to 2,016 MW. In the short term, the projects under construction or
that have obtained the authorizations required for launching
construction will add 82 MW to installed capacity, increasing total
capacity from 2,016 MW to 2,098 MW at the end of 2021.
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
objective.
As at September 30, 2019,
discretionary cash flows amounted to $96
million based on the previous twelve months. This is an
increase of 64% compared to the $59
million recorded in fiscal 2018. This improvement is
attributable to better operational results and the contribution
from sites acquired and commissioned over the past year.
As at September 30, 2019, the
dividend paid to shareholders equalled a payout ratio of 61% based
on the previous twelve months. The increase in discretionary cash
flow since the start of 2019 made it possible to approach the
target payout ratio of 40% - 60%.
Lastly, as at September 30, 2019,
Boralex's installed capacity was 2,006 MW, an increase of 64 MW
since the beginning of the year, due to the commissioning of three
wind farms and one hydroelectric power station. Furthermore, the
Corporation began fiscal 2019 with an additional installed capacity
of 285 MW in France and 201 MW in
Canada compared to a year earlier,
due to the wind farms commissioned and acquired in 2018. These
sites will contribute to the Corporation's financial results for
the entire current fiscal year.
Dividend declaration
The Corporation's Board of Directors has authorized and declared
a quarterly dividend of $0.1650 per
common share to be paid on December 16,
2019 to shareholders of record at the close of business on
November 29, 2019. 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, 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 nearly 30 years. Boralex's shares are listed on the
Toronto Stock Exchange under the ticker symbols 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, strategic
plan, business model, growth strategy, revenues diversification,
optimization, development in the solar sector and storage,
expansion of targeted customers through signature of contracts
directly with companies consuming electricity, sale of minority
interests and 2023 financial objectives, 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
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, but are not limited to, the
general impact of economic conditions, currency fluctuations,
volatility in energy selling prices, the Corporation's financing
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, 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 Boralex Inc. ("Boralex" or the
"Corporation") under IFRS and the share of the financial
information of the Interests. The Interests represent
significant investments by Boralex and although IFRS does not
permit the consolidation of their financial information within that
of Boralex, management considers that information on a Combined
basis is useful data to evaluate the Corporation's performance. In
order to prepare the Combined information, Boralex first prepares
its financial statements and those of the Interests in accordance
with IFRS.
Then, the Interests in Joint Ventures and associates, Share in
earnings of the Joint Ventures and associates and Distributions
received from the Joint Ventures and associates line items are
replaced by Boralex's respective share (ranging from 50.00% to
59.96%) in the financial statement items of the Interests
(revenues, expenses, assets, liabilities, etc.). See the Non- IFRS
measures section in the Third Quarter Interim Report for more
information.
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SOURCE Boralex Inc.