March 30 (Renewables Now) - Canadian power producer Northland Power Inc (TSE:NPI) today reaffirmed its 2020 financial forecast in view of its ample liquidity, solid balance sheet and relatively stable revenue and free cash flow profile.
In a business update on the COVID-19 situation, the company said it continues to expect adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the range of CAD 1.1 billion (USD 776m/EUR 704m) to CAD 1.2 billion for 2020, with free cash flow between CAD 1.70 and CAD 2.05 per share.
In response to the coronavirus outbreak, the company has taken preventive measures such as restricting business travel and, where possible, shifting its corporate and regional offices to work from home. At present, all of its facilities operate normally. Construction activities at the site of its La Lucha solar project in Mexico also continue under the relevant precautions.
Northland, though, noted that it has some limited exposure to the wholesale market price, but this does not relate to its offshore wind parks, which are contracted. To date, higher than expected production has been compensating for the impacts of lower than forecast market pricing.
As per the company’s financial position, as at end-February it had about CAD 600 million of cash and cash equivalents on hand and almost CAD 500 million of available capacity under its corporate credit lines. Northland pointed out that it has no significant immediate debt maturities other than CAD 150 million of convertible debentures due in June 2020.
Meanwhile, the company has completed the acquisition of wind developer Dado Ocean Wind Farm Co Ltd, which owns a portfolio of early-stage offshore wind projects in South Korea. Coupled with sites identified by Northland itself, the firm is looking at roughly 1 GW of offshore wind opportunities there.
Also today, Northland confirmed it will acquire the NaiKun offshore wind project, which has provincial and federal regulatory approvals for a capacity of 400 MW in the Hecate Strait off the coast of British Columbia. Mike Crawley, president and CEO of Northland, stated that the company “will be reaching out to the Haida Nation to discuss the project and how it could potentially move forward.”
(CAD 1.0 = USD 0.706/EUR 0.640)