Innergex returns to quarterly net profit in Q2 2021
Ken Teegardin/CC BY-SA 2.0
Canadian power producer Innergex Renewable Energy Inc (TSE:INE) succeeded in turning a quarterly net profit and saw its revenues and adjusted EBITDA climb year-over-year in the second quarter of 2021.
The highlight of the period was the start of commercial operation under the power purchase agreement (PPA) of the company's 200-MW Hillcrest solar farm in Ohio.
The strength of the solar segment as a whole and higher production at most of the Innergex hydropower plants contributed to the results.
Performance of the wind generation segment was held back by the exclusion of the results from the Flat Top and Shannon joint venture facilities from April 1 due to the project's classification as held for sale after the February 2021 Texas extreme weather events.
After the adverse impact of Texas events and impairment charges on the 200-MW Flat Top and 204-MW Shannon wind parks in Texas, the company recorded a first-half net loss of CAD 167.7 million (USD 133.4m/EUR 112.6m), compared to a CAD-48.5-million net loss a year ago.
For the second quarter, the bottom line showed net earnings of CAD 50.2 million, versus a net loss of CAD 1.6 million in 2020’s second quarter due to the reversal of deferred tax liabilities and favourable movement in the share of loss of joint ventures and associates following the classification of Flat Top and Shannon’s assets and liabilities as disposal groups held for sale.
Figures in CAD, unless otherwise noted
Production Proportionate (MWh)
Adjusted EBITDA Proportionate
Net earnings (loss)
Adjusted net earnings (loss)
President and chief Executive Michel Letellier noted that since the end of the quarter, the company has completed the acquisition of the remaining interest in Chile’s Energia Llaima and reached commercial operation on its 225.6-MW Griffin Trail wind project in Texas, in line with its growth strategy.
“We remain focused on pursuing organic development and acquisitions to meet our Strategic Plan objectives and reduce stress on our payout ratio,” Letellier added.