Innergex books Q2 loss even as revenues grow 29%

Innergex PV plant. Image by Innergex.

Canadian power producer Innergex Renewable Energy Inc (TSE:INE) on Wednesday reported a second-quarter net loss of CAD 24.6 million (USD 19.2m/EUR 18.8m) even as revenues grew 29% from the same quarter of 2021 to CAD 219.7 million.

The net loss came after net earnings of CAD 50.2 million a year earlier. The change in the bottom line reflects items including a decrease in recovery of income tax due to the reversal of deferred tax liabilities in 2021 related to the Flat Top and Shannon facilities, which were classified as held for sale following the extreme Texas winter weather in February 2021, an increase in merchant power curves for the Phoebe power hedge, increased depreciation and amortisation and higher finance costs related to acquisitions and commissionings.

Revenues were helped up by acquisitions and held back somewhat by lower water flows for the hydro facilities in British Columbia. Innergex has a portfolio of hydro, wind, solar and battery storage facilities, located in the US, Canada, France and Chile. Below are some figures from its results for the second quarter and the first half of 2022.

Figures in CAD	Q2 2022	Q2 2021	H1 2022	H1 2021
Production (MWh)	2,855,891	2,396,027	5,160,494	4,181,975
Revenues	219.7m	170.6m	408.5m	360.3m
Adjusted EBITDA	152.9m	122.7m	283.4m	265.8m
Net (loss) earnings	(24.6m)	50.2m	(59.5m)	(167.7m)
Adjusted net loss	(1.5m)	18.7m	(3.9m)	(8.9m)

The company also revised upwards its growth targets for 2022 to take into account acquisitions since its previous forecast at the beginning of the year. The targets also take into consideration below-average water flows, wind regimes and solar irradiation at some facilities during the first six months of 2022, it said.

During the second quarter, Innergex acquired three wind farms totalling 332 MW in Chile.

(CAD 1 = USD 0.779/EUR 0.764)

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