Northland Power books higher revenues, profit in Q1

Installation of the first Gemini wind turbine. Author: Northland Power Inc. License: All Rights Reserved.

May 14 (Renewables Now) - Canada-based Northland Power Inc (TSE:NPI) today reported a 35% year-on-year increase in first-quarter net profit and confirmed its 2020 guidance but warned its revenues could be partly impacted by the COVID-19 crisis.

The power producer said that the global health and economic crisis has not affected the operation of its facilities and most of their revenues are generated under long-term agreements. Nevertheless, some of them are selling their output on the wholesale electricity market where prices have dropped and if this trend continues, the company’s revenues may suffer. Northland added that the “relative stability” of its revenues and access to CAD 423 million (USD 300.1m/EUR 277.5m) of cash and liquidity as of end-March provide it with confidence that it can limit the overall COVID-19 impact.

The Canadian firm closed the first quarter with a net profit of CAD 275 million, up from CAD 204 million a year before, with sales rising by 34% in annual terms to CAD 668 million. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) jumped by 43% to CAD 421 million, mainly thanks to the contribution of offshore wind and EBSA, a Colombian regulated power distribution utility, which Northland Power acquired in January. In offshore wind, adjusted EBITDA came at CAD 304 million, growing 63% year-on-year as production and sales in the segment rose. The result for onshore renewables contracted by 10% because of decreased solar and wind output.

Northland Power’s sales in January-March rose to CAD 667.7 million. The increase was partially offset by lower wholesale market prices at Gemini and unfavourable foreign exchange rate fluctuations.

More details can be seen in the table below.

Amounts in CAD Q1 2020 Q1 2019
Sales 667.7m 498.5m
Adjusted EBITDA 420.8m 293.7m
Operating profit 394.6m 287.6m
Net profit 275m 204.2m
Free cash flow 211.5m 141.8m
Free cash flow per share 1.10 0.79

CEO Mike Crawley described the company’s financial and operating performance as “solid.” He said that the management continues to expect full-year adjusted EBITDA to range between CAD 1.1 billion and CAD 1.2 billion, with free cash flow per share seen at CAD 1.70-2.05.

(CAD 1.0 = USD 0.709/EUR 0.656) 

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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