Canadian power producer Northland Power Inc (TSE:NPI) on Thursday reported strong performance for the third quarter and first nine months of 2022 on the back of high availability across its portfolio and higher power prices in Europe.
The company moved to a net profit of CAD 76 million (USD 56.5m/EUR 56.3m) in the third quarter from a net loss of CAD 5 million in the same period of 2021, while sales grew to CAD 556 million from CAD 432 million.
Sales from Northland’s offshore wind facilities were up 41% to CAD 278 million. The offshore wind farms generated 9%, or 67 GWh, more electricity than a year ago thanks to higher wind resource, no unpaid curtailments linked to negative prices and fewer uncompensated grid outages at the German facilities, the company said.
The onshore renewable facilities also benefited from higher wind and solar resources and recorded an increase in electricity production of 38% or 133 GWh. Their sales grew 27% to CAD 95 million, reflecting the contribution from the Spanish portfolio acquired in August 2021.
More details of the company's results:
| in CAD millions |
Q3 2022 |
Q3 2021 |
9mo 2022 |
9mo 2021 |
| Sales |
555.9 |
432.1 |
1,807.7 |
1,435.2 |
| Operating profit |
216.5 |
89 |
821.8 |
513.2 |
| Adj. EBITDA |
289.8 |
210.7 |
1,045.1 |
773.4 |
| Net income (loss) |
76.1 |
4.7 |
631.5 |
140.4 |
| Free cash flow |
44.7 |
11.1 |
364.6 |
151.1 |
“We are affirming our full-year guidance for 2022, which was updated with our second quarter results in August and subsequently reflects our decision to pay down more debt in the fourth quarter on our facilities with the cash flows realised from higher operational performance in 2022,” said president and chief executive Mike Crawley. The Canadian firm continues to expect adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of between CAD 1.25 billion and CAD 1.35 billion in the full year.
Northland’s chief financial officer Pauline Alimchandani said that against an uncertain economic backdrop of higher interest rates and inflationary pressures, the company has proactively taken steps to refinance EUR 2.2 billion of aggregate Gemini and Spain debt facilities, using the higher cash flows generated in 2022 to deleverage the assets. “We continue to evaluate potential refinancing and sell-down opportunities within our portfolio to generate both additional value, liquidity and cash flows to Northland,” added Alimchandani.
(CAD 1 = USD 0.744/EUR 0.741)
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