Boralex's Q2 earnings and revenue rise, but attributable loss doubles

Boralex Inc (TSE:BLX) saw both its revenue and adjusted EBITDA improve in the second quarter of 2021 compared to a year earlier, but the company’s attributable net loss still more than doubled during the three-month period.

The Canadian renewable power producer reported a net loss attributable to its stockholders under IFRS of CAD 13 million (USD 10.4m/EUR 8.8m) compared to a loss of CAD 6 million a year earlier. It blamed the negative performance on the addition of amortisation and financial expenses related to acquisitions and project commissionings. In addition to that, the company recognised a loss on disposal of a non-strategic asset and accelerated amortisation for sites undergoing repowering.

At the same time, Boralex generated revenues from energy sales of about CAD 147 million, up by 21% on the year, and posted consolidated adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of CAD 106 million, which is 23% higher than the figure reported in the second quarter of 2020. Both increases are attributable to acquisitions and commissionings during the period.

"The contribution of our two most recent acquisitions and our project commissionings was in line with our expectations and enabled us to continue growing our EBITDA(A) despite the unfavourable hydraulic conditions arising from the low level of precipitation in recent months,” said Patrick Decostre, president and CEO of Boralex.

The table below gives more information about the company's financial performance in April-June and the whole first half of 2021, both on IFRS and "Combined" basis.

In April-July 2021, total production was greater than that in the same period of 2020, up by 41% under IFRS, and slightly below anticipated production, down 5%.

Decostre said that the company is in the final stages of preparing its project submission for the New York State request for solar project proposals.

“In the coming quarters, we will also continue to seek acquisition opportunities and to implement the various initiatives outlined in our 2025 Strategic Plan, including the optimisation of our capital structure and the execution of our corporate social responsibility strategy," he added.

Presently, Boralex has a pipeline of projects at various stages of development totalling 3,075 MW, along with a 630-MW Growth Path.

(CAD 1.0 = USD 0.801/EUR 0.677)

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