Innergex Renewable Energy Inc (TSE:INE) on Tuesday reported higher second-quarter revenues and a narrower net loss from continuing operations with the help of wind and solar capacity additions.
The Canadian renewable energy company has a portfolio of wind, solar and hydropower plants in the US, Canada, Chile and France with a total net installed capacity of 2.74 GW, as well as 150 MWh of energy storage capacity.
Power production remained intact at all of the company’s segments during the COVID-19 lockdown as output is sold mainly through power purchase agreements (PPAs). Curtailments related to BC Hydro’s inability to buy electricity under existing off-take arrangements in the pandemic setting have been disputed.
Innergex booked a second-quarter net loss from continuing operations of CAD 1.57 million (USD 1.18m/EUR 1m), narrowing from CAD 10.5 million a year before thanks to other income, a gain related to the change in fair value of financial instruments and a drop in finance costs.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were almost unchanged, while the margin slipped to 70% from 72.7% due to a lower margin from projects brought online in 2019 and higher general and administrative expenses.
The table gives more details about Innergex’s financial performance.
| Figures in CAD million, unless otherwise noted |
Q2 2020 |
Q2 2019 |
H1 2020 |
H1 2019 |
| Production (MWh) |
2,185,793 |
1,741,953 |
3,865,390 |
3,050,458 |
| Production Proportionate (MWh) |
2,575,868 |
2,136,983 |
4,545,631 |
3,726,810 |
| Revenues |
150.5 |
144.7 |
282.6 |
271.1 |
| Revenues Proportionate |
192 |
176.6 |
356.4 |
324.6 |
| Adjusted EBITDA |
105.3 |
105.3 |
195.8 |
198.5 |
| Adjusted EBITDA Proportionate |
140 |
127.6 |
256 |
234.1 |
| Net profit (loss) from continuing operations |
(1.6) |
(10.5) |
(48.5) |
(14.9) |
| Adjusted net profit (loss) from continuing operations |
4.5 |
(2.7) |
(4.1) |
(14) |
“We are very optimistic for our future, which will combine our own development efforts with strategic acquisitions that will further solidify our balanced portfolio of assets,” said president and CEO Michel Letellier. He added that recent acquisitions are seen to have a positive impact on cash available for distribution and lower pressure on payout ratios.
The Canadian firm noted that its adjusted proportionate EBITDA was negatively affected by the BC Hydro curtailment and the timing of certain project loan interest payments but still registered a 10% increase.
Free cash flow generated in the 12 months through June 30, 2020, amounted to CAD 73.8 million, falling from CAD 115.7 million for the same period a year earlier.
(CAD 1.0 = USD 0.752/EUR 0.637)
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Mesgi’g Ugju’s’n wind farm. Image by www.muwindfarm.com
