Canadian renewable power producer Boralex Inc (TSE:BLX) will aim to double its installed capacity under management by 2025 and reach up to 12 GW by 2030 as part of its updated strategic plan unveiled on Thursday.
The new corporate objectives call for the company to have 4.4 GW of installed capacity under management by 2025, against 2.2 GW at end-2020, setting the stage for 10 GW-12 GW by 2030.
The revised strategy, which also covers the company’s corporate social responsibility (CSR) programme, has four pillars betting on growth, diversification, customers and optimisation. Those key areas, Boralex said, will enable it to speed up the development of its wind and solar portfolios in “high-potential markets” and in new markets in Europe and the US. Opportunities for setting foot in the field of energy storage will be pursued as well.
“Our goal is to become the leading CSR reference for our partners over the next few years by going beyond renewable energy," said CEO Patrick Decostre.
Highlights of the strategic plan include significantly increasing the share of solar power in the asset and project portfolio and making the US a primary market for development. While expansion across Europe will be sought, the company will seek to enhance its wind business in its home country. Furthermore, its goals include growing its customer base through industrial electricity supplies and accelerating power marketing.
"We will continue to pursue disciplined growth through projects, acquisitions and partnerships that meet specific criteria for an improved asset portfolio with a return that meets the expectations of our shareholders," said vice president and CFO Bruno Guilmette.
FINANCIAL GOALS
By 2025, Boralex will aim to achieve combined adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of between CAD 800 million (USD 646.3m/EUR 542.9m) and CAD 850 million, representing a 9%-11% increase from 2020 levels. A 10%-12% rise will be targeted for discretionary cash flows, or CAD 240 million-260 million. Between 50% and 70% of the discretionary cash flows will be reinvested in growth initiatives.
(CAD 1.0 = USD 0.808/EUR 0.679)
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Wind turbines in France. Image by: Boralex.
