Innergex records lower earnings on higher revenues in Q2
Wind turbines in Quebec. Author: Dennis Jarvis. License: Creative Commons, Attribution-ShareAlike 2.0 Generic
Net earnings at Canadian renewable power producer Innergex Renewable Energy Inc (TSE:INE) declined to CAD 15.7 million (USD 11.9m/EUR 10.8m) in the second quarter of 2016 from CAD 22.5 million a year ago.
Adjusted EBITDA, defined as revenues less operating expenses, general and administrative expenses and prospective project expenses, however, rose 25% to CAD 66.9 million as revenues and generation increased.
The company, which develops and operates hydroelectric, wind and solar facilities, recorded CAD 87.8 million of revenues in the quarter, up 25% from a year ago, its results showed last week. It said the increase was due to better results from most of its hydroelectric facilities in British Columbia, as well as to the contribution of the facilities recently commissioned or acquired. These benefits were partly offset by lower revenues in the Quebec wind regime and Ontario hydrologic regime.
The company's facilities produced 1,176 GWh of electricity in the period, which is 113% of the long-term average. Output was also up 30% from a year ago. In the first six months of the year, it generated 1,841 GWh, a year-on-year increase of 18%.
"Innergex is currently experiencing one of its best half-year ever with production that was 115% of the long-term average," said president and chief executive Michel Letellier. He noted on the company completing its first acquisition in France -- an 87-MW wind farm portfolio with an agreement to buy another 44 MW. "This is only a beginning for Innergex in the European market," the CEO commented.
In the first half, Innergex made net earnings of CAD 22.9 million, against a net loss of CAD 15.3 million a year ago. Revenues grew 17% to CAD 150.3 million.