Boralex's loss widens in Q2

Temiscouata wind farms in Quebec

August 10 (Renewables Now) - Canadian renewables developer Boralex Inc (TSE:BLX) today posted a significantly higher second-quarter (Q2) attributable net loss due to lower than expected production volumes and certain costs and impairment losses.

Specifically, Boralex registered a net loss attributable to shareholders of CAD 28 million (USD 21.4m/EUR 18.7m), compared with CAD 2 million a year earlier. The bottom line takes into consideration some CAD 7 million in extraordinary acquisition costs and CAD 12 million in impairment losses on property, plant and equipment and intangible assets.

“The prevailing weather conditions did not allow us to achieve the expected operating results, but it’s important to note that the quarter provided an opportunity to significantly strengthen our position as an industry leader in our main markets,” said Patrick Lemaire, president and CEO of Boralex.

For the first half of 2018, Boralex reported an attributable net loss of CAD 8 million versus a profit of CAD 13 million a year back.

The table below gives more details about the company’s financial performance during the second quarter and first half of 2018. The amounts in brackets are adjusted on a Combined basis and are non-IFRS measures.

Figures in CAD million, unless otherwise noted 3 months ended June 30 6 months ended June 30
2018 (Combined) 2017 (Combined) 2018 (Combined) 2017 (Combined)
Production (GWh) 747 (881) 744 (863) 1,802 (2,085) 1,653 (1,926)
Revenues from energy sales 95 (110) 92 (105) 247 (278) 211 (240)
Adj. EBITDA 57 (68) 57 (67) 161 (182) 144 (165)
Adj. EBITDA margin (%) 60 (62) 62 (64) 65 (66) 68 (69)
Cash flows from operations 21 (26) 44 (46) 98 (111) 102 (115)

Boralex noted that it could reach an installed capacity of 2,065 MW at end-2020 and expects to announce a new long-term capacity target by the end of the year. Once it completes the pending acquisition of Invenergy’s interest in a Quebec wind portfolio, the company will control a total of 1,820 MW. The Quebec transaction is seen to close this month.

(CAD 1.0 = USD 0.764/EUR 0.669)

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