Acquisitions boost Innergex's Q3 revenues, profit

Mesgi’g Ugju’s’n wind farm. Image by www.muwindfarm.com

November 13 (Renewables Now) - Canada’s Innergex Renewable Energy Inc (TSE:INE) lifted its third-quarter net profit to CAD 9.7 million (USD 7.3m/EUR 6.7m) from CAD 9.5 million a year back, as revenues improved thanks to acquisitions and higher power generation.

The company has a portfolio of renewable power assets in Canada, the US, France and Chile with a net installed capacity of 2,338 MW. This portfolio includes wind, solar and hydropower plants.

In the third quarter, Innergex continued to reap the benefits from the contribution of the 62% stake in the Cartier Wind Farms it acquired in October 2018 and also enjoyed increased revenues from its French assets. Its financial performance was also positively impacted by the ramp-up of production of the Phoebe solar park in Texas.

Revenues in the three months climbed by 23% in annual terms to CAD 142.8 million, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) improved by 28%. The adjusted EBITDA margin, meanwhile, rose to 75.2% from 71.9% in the third quarter of 2018, mainly due to a higher margin in the hydropower segment.

The table below contains results from Innergex’s continuing operations. The 2018 figures have been restated to reflect the sale of the company’s stake in Iceland-based renewables firm HS Orka hf.

Results in CAD million, unless specified Q3 2019 Q3 2018 9mo 2019 9mo 2018
Production (MWh) 1,665,362 1,236,722 4,715,820 3,689,774
Revenues 142.81 116.46 413.93 343.17
Adjusted EBITDA 107.35 83.68 305.84 248.9
Net profit (loss) from cont. operations 9.9 5.99 (4.98) 7.4
Net profit 9.7 9.46 16.19 11.48

"With our strong financial position and large portfolio of development and prospective projects, we remain on track to continue pursuing our growth organically as well as through acquisition opportunities," said the company’s president and CEO Michel Letellier.

Free cash flow generated in the 12 months through September 30, 2019 stood at CAD 100.5 million, up from CAD 98.5 million for the same period a year earlier.

Innergex will distribute a dividend of CAD 0.1750 per common share on January 15,2020.

(CAD 1.0 = USD 0.756/EUR 0.686)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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