Acquisitions help Innergex increase Q2 top line

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

Innergex Renewable Energy Inc (TSE:INE) improved both its top line and its bottom line in the second quarter of 2018 as purchases made this and last year contributed for the company’s strong operating performance.

The Canadian renewable power producer saw its net profit rise to CAD 16.8 million (USD 12.8m/EUR 11.3m) in January-June 2018 from CAD 13.9 million a year back.

One of the main reasons for the increase in profits is that the company registered an unrealised net gain of CAD 12.8 million for the second quarter of 2018 versus an unrealised net loss of CAD 0.5 million a year earlier. In addition to that, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 15% year-on-year to CAD 99.1 million and the company recorded a CAD-1.2-million positive change in income taxes.

The company’s increased top line also helped. Revenues climbed by 37% to CAD 149.5 million as its wind farms in Quebec performed better than in the year-ago period. Overall, Innergex’s plants generated 1,823,321 MWh of electricity or 100% of the long-term average (LTA) of 1,827,540 MWh. Apart from wind farms, the company also operates hydroelectric and geothermal plants, as well as the 33-MW Stardale solar farm.

"The overall performance of our facilities as well as the addition of our major acquisition achieved in February 2018 are the main contributors to our strong results in the quarter," said Michel Letellier, president and CEO of Innergex.

The table below includes Innergex’s financial results for the six months ended June 30, 2018.

Figures in CAD million (unless otherwise noted)	H1 2018	H1 2017
Revenues	267.4	184.1
Adjusted EBITDA	178.5	136.9
Adjusted EBITDA Proportionate	196	142
Net profit	2.2	11.4
Power generation (MWh)	2,959,666	2,045,053