Innergex posts H1 loss, but EBITDA and sales grow

Mesgi’g Ugju’s’n wind farm. Image by www.muwindfarm.com

Innergex Renewable Energy Inc (TSE:INE) turned to a net loss from continuing operations of CAD 14.9 million (USD 11.3m/EUR 10m) in the first half of 2019 from a profit of CAD 1.4 million a year before.

The company has wind, solar and hydropower plants in the Americas and France with a total net installed capacity of 2 GW. In the first half of 2019, and in the second quarter, Innergex’s bottom line was hit by higher depreciation and amortisation and finance costs. It also reported a CAD-9-million unfavourable variation in unrealised net (gain) loss on financial instruments for the first half.

At the same time, revenues and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased thanks to the contribution of the 62% stake in the Cartier Wind Farms acquired by Innergex in October 2018. Proportionate revenues and EBITDA grew due to the investment in Chilean renewables firm Energía Llaima, and higher revenues from assets in Texas where selling prices increased in 2019.

The table contains results from continuing operations in 2019. The 2018 figures have been restated to reflect the sale of Innergex’s stake in Iceland-based renewables firm HS Orka hf.

Results in CAD million, unless specified	Q2 2019	Q2 2018	H1 2019	H1 2018
Production	1,742 GWh	1,509.6 GWh	3,050.5 GWh	2,453 GWh
Revenues	144.7	124.9	271.1	226.7
Adjusted EBITDA	105.3	91.7	198.5	165.2
Net profit (loss) from cont. operations	(10.5)	11.1	(14.9)	1.4

Free cash flow generated in the 12 months to June 30, 2019 amounted to CAD 115.7 million, up from CAD 91.7 million for the same period a year earlier.

Innergex will distribute a dividend of CAD 0.175 per common share on October 15 to shareholders of record as of September 30.

(CAD 1 = USD 0.75/EUR 0.67)

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