August 10 (Renewables Now) - Canada-based Northland Power Inc (TSE:NPI) on Wednesday posted a 9% year-on-year increase in adjusted EBITDA in the second quarter of 2018 and said it continues to “make great progress” on its full-year priorities.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) expanded to CAD 183 million (USD 140m/EUR 122m), while net profit gained 12% in annual terms to CAD 69 million. The bottom line improved mainly thanks to a non-cash fair value gain on derivative contracts but was in part offset by a drop in operating profit, higher tax expense and finance costs. Sales climbed by 5% to CAD 338.2 million.
The second-quarter results were lifted by the increased power generation from the 332-MW Nordsee One wind farm in the German North Sea, which was commissioned at end-2017, as well as higher production from solar power plants.
Free cash flow, however, contracted to CAD 0.21 per share from CAD 0.57 per share due to several one-time items related to the completion of the 600-MW Gemini offshore wind park in the Netherlands and the Nordsee One project.
During the reporting three months, Northland and its partner Yushan Energy Co got 300 MW of grid capacity for its 1,044-MW Hai Long Offshore Wind development in the Taiwan Strait and afterwards won an additional 744 MW. The capacity was secured in a grid allocation process and auctions under Taiwan’s offshore wind auction programme. CEO Mike Crawley noted that work is ongoing to advance the project toward securing power purchase agreements (PPAs).
The Canadian company also said that its 252-MW Deutsche Bucht offshore wind project in the German North Sea is progressing on schedule. Offshore installations of the foundation structures are due to start in the third quarter of 2018 and the wind farm is expected to be completed by the end of next year. Following full commercial operations in 2020, Northland anticipates the Deutsche Bucht park to bring adjusted EBITDA of between EUR 165 million (USD 189m) and EUR 185 million annually, up from a previous forecast of EUR 155 million-175 million.
For 2018, Northland guided for adjusted EBITDA of CAD 860 million-930 million. Free cash flow per share is seen at CAD 1.70 - 2.00.
(CAD 1.0 = USD 0.764/EUR 0.667)
(EUR 1.0 = USD 1.146)