Boralex returns to the black in Q2, revenues grow

Canadian renewable power producer Boralex Inc (TSE:BLX) returned to a second-quarter attributable net profit amid increased revenues and operating earnings that were mainly boosted by the rising power sale prices.

The company closed the April-June quarter with an attributable net profit of CAD 10 million (USD 7.8m/EUR 7.6m), reversing a loss of CAD 16 million from a year back, its financial report showed on Wednesday.

Consolidated operating income soared by 89% in annual terms and earnings before interest, taxes, depreciation and amortisation (EBITDA) gained 15% reflecting the contribution of high electricity sales prices on certain feed-in premium contracts in France. The commissioning of new wind and solar farms and increased revenues from power plant divestments also fuelled the growth.

At CAD 168 million, revenues from energy sales and feed-in premiums improved by 14% on a yearly basis, regardless of the 2% decrease in power generation caused by unfavourable wind conditions in France.

More details on the company’s performance are available in the table below. In addition to consolidated IFRS results, Boralex provides figures on a “Combined” basis, which include “Interests” representing significant investments that cannot be consolidated under IFRS but are considered important for evaluating the company’s overall performance.

1,298

168

1,452

“For a second consecutive quarter, we made significant progress in our growth strategy by advancing several ongoing projects and adding new projects to our portfolio, now representing nearly 4 GW of power,” said president and CEO Patrick Decostre.

At the end of June, Boralex had an installed capacity base of 2.5 GW, while it was developing a portfolio of 3.9 GW of wind and 200 MW of storage projects. Additionally, it had secure projects on its Growth Path with a combined capacity of 709 MW.

In the second quarter alone, the Canadian firm added 177 MW of new wind and solar and 26 MW of energy storage projects to its portfolio.

Boralex’s board of directors authorised a quarterly dividend of CAD 0.1650 per common share, to be distributed on September 16, 2022, to shareholders of record at the close of the business on August 31, 2022. Looking ahead, the company said it will work on project development, acquisition targets and the optimisation of power sales contract management as part of its 2025 strategy.

(CAD 1.0 = USD 0.778/EUR 0.760)

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