22% increase in discretionary cash flows, net
earnings of $61 million,
415 MW addition to production capacity and growing projects in
development
Highlights
- Strong growth in discretionary cash flow and combined
EBITDA(A) in 2020
-
- Cash flow totaling $146 million
in 2020 and $67 million in Q4 2020, a
22% increase for the fiscal year and a 2 % decrease in the fourth
quarter compared to corresponding periods in 2019
- Combined EBITDA(A) of $513
million in 2020 and $155
million in Q4 2020, a 4% increase for the fiscal year and a
6% decrease in the fourth quarter compared to corresponding periods
in 2019
- Total combined production above 2019 production and
anticipated production(1)
-
- For the fiscal year 2020: 5% increase over 2019 and 4% higher
than anticipated production
- For the fourth quarter: 5% increase over 2019 and 7% higher
than anticipated production
- Two major acquisitions added 17% (354 MW) to installed
capacity and 13% ($66 million) to the
annualized combined EBITDA(A)
-
- Closing of the acquisition of CDPQ's 49% equity stake in 3
Quebec wind farms at the beginning of December 2020
- Closing of the acquisition of interests in seven solar plants
in the United States at the
beginning of February 2021
- Project portfolio and Growth Path progressed in North America and Europe
-
- Three wind projects commissioned in France, adding 45 MW during the fourth quarter
of 2020.
- 139 MW added to the solar project portfolio during the fourth
quarter of 2020; 80 MW in the United
States and 59 MW in France
- The 200 MW Apuiat wind project (100 MW attributable to Boralex)
in Québec and the 200 MW solar projects in the United States advanced to the secured
phase of the Growth Path following signature of contracts at the
beginning of 2021
- Patrick Decostre took office as President and CEO, effective
December 1, 2020, with the retirement
of Patrick Lemaire
- First Corporate Social Responsibility (CSR) report published
separately from the 2020 Annual Report
MONTRÉAL, Feb. 25, 2021
/PRNewswire/ - For the fiscal year ended December 31, 2020, Boralex Inc. ("Boralex" or the
"Company") (TSX: BLX) posted energy sales of $619 million ($738
million(2)), an increase of 10% (7%) over the
fiscal year 2019, and EBITDA(A) of $434
million ($513 million), an
increase of 8% (4%) over 2019. For the fourth quarter of 2020,
Boralex posted energy sales of $193
million ($225 million), up 8%
(6%) over the fourth quarter of 2019. The Company's EBITDA(A) was
$137M ($155M), a level comparable to 2019 excluding a
gain on the sale of land in Scotland and other unusual items recorded in
the fourth quarter of 2019.
"I'm very proud of our employees' hard work during the unusual
fiscal year in 2020. The 22% growth in our discretionary cash
flows, the announcement of two major acquisitions and the addition
of many projects to our Growth Path are perfectly aligned with our
strategic plan and financial objectives for 2023," said Boralex's
President and CEO, Patrick
Decostre.
"The fiscal year 2020 also marks the beginning of a major
project that will highlight our social responsibility business
practices and approach to improving these practices."
The social responsibility (CSR) and ESG criteria sections were
added to the Company's strategic plan during the third quarter of
fiscal 2020. A detailed report was produced and is now available on
Boralex's website.
Regarding the Corporation's outlook, Mr. Decostre added: "We
continue to be very active in pursuing development and growth
opportunities in our target markets, particularly in North America. We're also seeing encouraging
signs of a resumption of wind energy development in Québec
following a 30-year electricity sale contract signed for the Apuiat
project, which has an installed capacity of 200 MW, to be developed
in collaboration with Innu communities in Québec. The Hydro-Québec
Electricity Supply Plan published in October
2020 forecasting to take steps within the next year to
acquire new energy supplies, as well as the Québec Government Plan
for a Green Economy, released shortly after, are positive elements
for the wind energy development on Québec's territory."
"Over the next two quarters, we'll work to update our strategic
plan to take into account greater opportunities arising from the
energy transition's acceleration following the publication of
stimulus plans by various governments around the world. This review
will feature an update of our 2023 financial objectives, given our
strong performance over the past two years," said Mr. Decostre.
________________________
|
(1)
|
Calculated based on
adjusted historical averages of commissioning and planned outages
for experimental and other sites, based on producible material
studies performed.
|
(2)
|
The figures in
brackets reflect the combined EBITDA(A), versus those calculated
according to the IFRS. See the "Combined EBITDA(A) — Non-IFRS
Measures" section below.
|
Fourth quarter highlights
For quarters ended December
31
|
IFRS
|
Combined(1)
|
(in millions of
Canadian dollars, unless otherwise specified)
|
2020
|
2019
|
Change
|
2020
|
2019
|
Change
|
|
|
$
|
%
|
|
|
$
|
%
|
Power production
(GWh)(2)
|
1,468
|
1,364
|
104
|
8
|
1,763
|
1,677
|
86
|
5
|
Revenues from energy
sales and feed-in premium
|
193
|
179
|
14
|
8
|
225
|
212
|
13
|
6
|
EBITDA(A)(1)
|
137
|
143
|
(6)
|
(4)
|
155
|
165
|
(10)
|
(6)
|
Net loss
|
30
|
(23)
|
53
|
>100
|
36
|
(15)
|
51
|
>100
|
Net loss attributable
to shareholders of Boralex
|
25
|
(26)
|
51
|
>100
|
31
|
(18)
|
49
|
>100
|
Per share - basic and
diluted
|
$0.24
|
($0.28)
|
$0.52
|
>100
|
$0.30
|
($0.19)
|
$0.49
|
>100
|
Net cash flows
related to operating activities
|
59
|
58
|
1
|
3
|
81
|
52
|
29
|
51
|
Cash flows from
operations(1)
|
101
|
119
|
(18)
|
(16)
|
118
|
116
|
2
|
2
|
|
|
|
|
Three-month periods
ended
|
Twelve-month periods ended
|
(in millions of
Canadian dollars, unless otherwise specified)
(unaudited)
|
December
31,
|
December
31,
|
Change
|
December
31,
|
December
31,
|
Change
|
2020
|
2019
|
$
|
%
|
2020
|
2019
|
$
|
%
|
Discretionary cash
flows(1) - IFRS
|
67
|
68
|
(1)
|
(2)
|
146
|
120
|
26
|
22
|
(1)
|
For more details, see
the Non-IFRS Measures section in the 2020 Annual 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 Q4 2020, Boralex generated 1,468 GWh (1,763 GWh) of power, an
increase of 8% (5%) compared to 1,364 GWh (1,677 GWh) in the same
quarter in 2019. The increase stems from more favorable conditions
for Canada's wind and
hydroelectric sectors, as well as the acquisition of the CDPQ's
equity interests in three wind farms in Québec. Canadian wind power
generation was 34% (16%) higher than in the fourth quarter of 2019
and 27% (14%) higher than anticipated. Wind power production in
France was comparable to the
production in the fourth quarter of 2019, but 6% higher than
anticipated production.
For the three-month period ended December
31, 2020, revenues from energy sales totalled $193 million ($225
million), up $14 million
($13 million) or 8% (6%) compared to
the same quarter in 2019. This increase stems from higher
production from Canadian activities, as previously
mentioned.
For the fourth quarter of 2020, the Company recorded a
consolidated EBITDA(A) of $137
million ($155 million),
down $6 million ($10 million) or 4% (6%) from the same quarter in
2019. This decrease stems from a gain recorded in 2019 following
the sale of land in Scotland, the
increase in maintenance costs due to production well above expected
levels in recent quarters, as well as an increase in compensation
linked to a higher stock market price.
Overall, for the three-month period ended December 31, 2020, Boralex recorded earnings
of
$30 million ($36 million) versus a net loss of $23 million ($15
million) for the same period in 2019. As detailed in the
above table, this results in net earnings for Boralex's
shareholders of $25 million
($31 million) or $0.24 ($0.30) per
share (base and diluted), compared to a net loss for Boralex's
shareholders of $26 million
($18 million) or 0.28 ($0.19) per share (diluted) for the same period
in 2019.
Fiscal year 2020 highlights
|
IFRS
|
Combined(1)
|
(in millions of
Canadian dollars, unless otherwise specified)
|
2020
|
2019
|
Change
|
2020
|
2019
|
Change
|
|
|
$
|
%
|
|
|
$
|
%
|
Power production
(GWh)(2)
|
4,727
|
4,371
|
356
|
8
|
5,834
|
5,544
|
290
|
5
|
Revenues from energy
sales and feed-in premium
|
619
|
564
|
55
|
10
|
738
|
687
|
51
|
7
|
EBITDA(A)(1)
|
434
|
402
|
32
|
8
|
513
|
492
|
21
|
4
|
Net earnings
(loss)
|
61
|
(43)
|
104
|
>100
|
56
|
(43)
|
99
|
>100
|
Net loss attributable
to shareholders of Boralex
|
55
|
(39)
|
94
|
>100
|
50
|
(39)
|
89
|
>100
|
Per share - basic and
diluted
|
$0.55
|
($0.43)
|
$0.98
|
>100
|
$0.51
|
($0.43)
|
$0.94
|
>100
|
Net cash flows
related to operating activities
|
362
|
294
|
68
|
24
|
399
|
303
|
96
|
31
|
Cash flows from
operations(1)
|
338
|
310
|
28
|
9
|
378
|
327
|
51
|
16
|
|
|
|
|
|
|
|
|
|
|
As at
Dec. 31
|
As at
Dec. 31
|
Change
|
As at
Dec. 31
|
As
at Dec.
31
|
Change
|
|
|
$
|
%
|
|
|
$
|
%
|
Total
assets
|
5,314
|
4,557
|
757
|
17
|
5,753
|
5,246
|
507
|
10
|
Debt(3)
|
3,516
|
3,067
|
449
|
15
|
3,870
|
3,660
|
210
|
6
|
Projects(4)
|
3,028
|
2,462
|
566
|
23
|
3,382
|
3,055
|
327
|
11
|
Corporate
|
488
|
605
|
(117)
|
(19)
|
488
|
605
|
(117)
|
(19)
|
(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 year ended December 31,
2020, Boralex generated 4,727 GWh (5,834 GWh) of
electricity, which represents an 8% (5%) increase compared to the
4,371 GWh (5,544 GWh) in fiscal 2019. The increase was particularly
high in wind power generation, which was 10% (6%) higher than
fiscal 2019 and 8% (7%) higher than the expected
production.
For the fiscal year ended December 31,
2020, revenue generated from energy sales amounted to
$619 million ($738 million), up $55
million ($51 million) or 10%
(7%) compared to the same period in 2019. This increase is due to
both the expansion of the Company's operational base, including the
resumption of production at the Buckingham hydroelectric power
station in Québec, and increased wind farm production due to more
favourable wind conditions than last year.
For the fiscal year ended December 31,
2020, the Company has a consolidated EBITDA(A) of
$434 million ($513 million), which represents an increase of
$32 million ($21 million) or 8% (4%) from last year. This
increase stems from the same elements as those mentioned above
relating to the increase in revenue from energy sales.
Overall, for the fiscal year ended December 31,
2020, Boralex posted earnings of $61
million ($56 million) versus a
net loss of $43 million ($43 million) for the fiscal year 2019. As
detailed in the above table, earnings for Boralex's shareholders
were $55 million ($50 million) or $0.55 ($0.51) per
share (base and diluted), versus a net loss for Boralex's
shareholders of $39 million
($39 million) or $0.43 ($0.43) per
share (base and diluted) for fiscal 2019. This increase is mainly
due to the increase in the EBITDA(A) posted during the fiscal year,
as described above, the decrease in impairment, the reduction in
amortization costs resulting from changes in the lifespan of
certain wind farm components, as well as interest savings related
to recent refinancing.
Outlook
In 2019, Boralex's Management unveiled the strategic plan that
will guide its actions toward achieving its 2023 financial
objectives. This plan is a continuation of actions undertaken to
date in sectors with high growth potential in which the Company has
developed solid expertise. It also includes additional initiatives
to diversify and optimize activities and revenue streams.
The plan is structured around four main guidelines and three
financial objectives. It stems from a rigorous market analysis and
trends in the renewable energy sector. It's also part of a process
in which a deep and rapid industry transformation is underway,
partly due to the high number of technological innovations.
To successfully implement its strategic plan and achieve its
financial objectives, the Company relies on its strong expertise in
small- and medium-sized project development. This is a key
advantage for capitalizing on opportunities in increasingly
competitive markets, including solar power.
Boralex's strategic plan builds on the growth potential of the
markets in which it operates.
In Europe, the French wind
power market has a growth potential of 1.85 GW per year by 2028,
while the ground-based solar power sector also has strong growth
potential, with an additional state capacity target of 2 GW per
year by 2028 according to the Multi-Year Power Program published on
April 23.
On the North American side, New York
State in the United States
has an increase target of 1.7 GW in 2019 to 6 GW in 2023 for solar
industry development under the Green New Deal, averaging over 1 GW
per year. Boralex targeted this market for its future development
according to its diversification guideline, as mentioned in the
table above. An Issue Order released in the Fall indicated that the
volume of renewable energy is expected to be 40% higher than the
volume currently projected in project applications from 2021 to
2026 in order to meet New York's
2030 targets. A new Auction program (Tier 4) was also introduced to
promote exports to New York State.
This should favor the development of Boralex wind projects in
Québec.
In January, Boralex acquired a majority equity interest in a
portfolio of seven solar farms in the United Stated with an
installed capacity of 209 MW. The vast majority of these farms are
located in California, a high
development potential market in which installed capacity in solar
power generation is expected to triple over the next 16 years,
according to the latest studies by Wood Mackenzie, and for which a
10 GW storage demand is expected over the next 10 years according
to the California Public Utilities Commission.
The Company has a portfolio of projects at various stages of
development, based on clearly stated criteria, for a total of 2,502
MW, as well as a Growth Path of 544 MW, as illustrated below.
(1)
|
The Evits et Josaphat
repowering project represents a total capacity of 14 MW with an
increase of 2 MW while the Remise de Reclainville repowering
project represents a total capacity of 14 MW with an increase of 2
MW, and the Mont de Bézard 2 repowering project represents a total
capacity of 25 MW with an increase of 13 MW.
|
(2)
|
The project
represents a total capacity of 200 MW. The Corporation is currently
considering whether the project should be consolidated in its
financial statements.
|
(3)
|
The total project
investment and the estimated annual EBITDA for projects in France
have been translated into Canadian dollars at the closing rate on
December 31, 2020.
|
In order for the implementation of the strategic plan to
translate into disciplined growth, while creating value for
shareholders, Boralex's Management is monitoring the evolution of
the three criteria retained as financial objectives.
For the fiscal year ended December 31,
2020, discretionary cash flow reached $146 million, which aligns with the $140 million to $150
million target set by the Company's 2023 financial
targets.
The dividend paid to shareholders in the fiscal year ended
December 31, 2020, was equivalent to
a dividend payout ratio of 45%, in line with the target dividend
payout ratio of 40% to 60% set according to the 2023 financial
objectives.
Finally, as of February 24, 2021,
Boralex's installed capacity was 2,455 MW. By adding construction-
ready projects and those under construction, as well as secure
projects on the Company's Growth Path, installed capacity increases
to 2,999 MW, exceeding the 2023 target of 2,800 MW. However, some
secured projects may be commissioned after 2023.
Dividend declaration
The Company's Board of Directors has authorized and announced a
quarterly dividend of $0.1650 per
common share. This dividend will be paid on March 15, 2021, to shareholders of record at the
close of business on February 26,
2021. Boralex designates this dividend as an "eligible
dividend" pursuant to paragraph 89(14) of the Income Tax Act
(Canada) and all provincial
legislation applicable to eligible dividends.
About Boralex
Boralex develops, builds and operates renewable energy production
facilities in Canada, France, the United
Kingdom and the United
States. Boralex is 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, namely wind, hydroelectric, thermal and solar.
Boralex ensures sustainable growth by leveraging the expertise and
diversification developed over 30 years. Boralex's shares are
listed on the Toronto Stock Exchange under the ticker symbol "BLX."
For more information, go to www.boralex.com or www.sedar.com.
Follow us on Facebook, LinkedIn and Twitter.
Disclaimer regarding forward-looking statements
Certain statements contained in this release, including those
related to results and performance for future periods, the
Company's strategic plan, business model and growth strategy, the
Company's financial targets and portfolio of renewable energy
projects, or the Company's Growth Path are forward-looking
statements based on current forecasts, as defined by securities
legislation.
Forward-looking statements are based on major assumptions,
including those about the Company's return on its projects, as
projected by management with respect to wind and other factors,
opportunities that may be available in the various sectors targeted
for growth or diversification, assumptions made about EBITDA(A)
margins, assumptions made about the sector realities and general
economic conditions, competition, as well as the availability of
funding and partners. While the Company considers these factors and
assumptions to be reasonable, based on the information currently
available to the Company, they may prove to be inaccurate.
Boralex wishes to clarify that, by their very nature,
forward-looking statements involve risks and uncertainties, and
that its results, or the measures it adopts, could be significantly
different from those indicated or underlying those statements, or
could affect the degree to which a given forward- looking statement
is achieved. The main factors that may result in any significant
discrepancy between the Company's actual results and the
forward-looking financial information or expectations expressed in
forward-looking statements include the general impact of economic
conditions, fluctuations in various currencies, fluctuations in
energy prices, the Company's financing capacity, competition,
changes in general market conditions, industry regulations,
litigation and other regulatory issues related to projects in
operation or under development, as well as other factors listed in
the Company's filings with the various securities
commissions.
Unless otherwise specified by the Company, forward-looking
statements don't take into account the effect that transactions,
non-recurring items or other exceptional items announced or
occurring after such statements have been made may have on the
Company's activities. There is no guarantee that the results,
performance or accomplishments, as expressed or implied in the
forward-looking statements, will materialize. Readers are therefore
urged not to rely unduly on these forward-looking
statements.
Unless required by applicable securities legislation, Boralex's
management assumes no obligation to update or revise
forward-looking statements in light of new information, future
events or other changes.
Percentage figures are calculated in thousands of
dollars.
Combined - Measure not compliant with IFRS
The combined EBITDA(A) shown above and in the Company's management
report results from the combination of Boralex Inc.'s ("Boralex" or
the "Company") financial information, established in accordance
with IFRS, and data relating to the share of Investments. The
Investments represent significant investments by Boralex, and
although IFRS don't allow for their financial information to be
combined with Boralex's information, Management considers the
combined EBITDA(A) to be useful data in assessing the Company's
performance. In order to calculate the combined EBITDA(A), Boralex
first prepared its financial statements and those of Investments,
in accordance with IFRS. Next, the items Investments in Associates
and Joint Ventures, Share of Profits (Losses) of Associates and
Joint Ventures and Distributions Received from Associates and Joint
Ventures are replaced with Boralex's respective share (ranging from
50.00% to 59.96%) in all items of the Investments' financial
statements (i.e., revenue, expenses, assets, liabilities, etc.).
For more information, please refer to the note Investments in
Associates and Joint Ventures in the annual audited consolidated
financial statements for the fiscal year ended December 31, 2020.
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