Northland Power's adj EBITDA rises in Q4

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

February 25 (Renewables Now) - Canadian power producer Northland Power Inc (TSE:NPI) reported 35% higher adjusted EBITDA for the fourth quarter of 2021, but a 3% decline in the annual result.

Adjusted earnings before interest, tax, depreciation and amortisation arrived at CAD 364 million (USD 283.8m/EUR 254.3m), growing by CAD 95 million year-on-year. A Spanish wind and solar parks portfolio bought by Northland in August 2021 contributed CAD 55 million of the increase. Better results from the company’s offshore wind fleet and a general increase in sales also helped, while unfavourable foreign exchange rate fluctuations had a negative impact. Gas costs were also higher than in 2020.

Canada-based Northland Power owns or has an economic interest in 3.2 GW of gross power producing capacity across renewables and efficient natural gas plants. Details on the company’s results are available in the table.

Results in CAD million Q4 2021 Q4 2020 Full 2021 Full 2020
Sales 640.1 492.8 2,093.3 2,060.6
Adj EBITDA 363.65 268.5 1,137 1,170.1
Net income 129.5 26.8 269.9 485.1
Free cash flow 156.3 56.4 307.4 343.6
Free cash flow per share in CAD 0.69 0.28 1.40 1.73
Electricity production in GWh 2,950 2,646 8,879 9,449

The full-year EBITDA contracted due to higher operating costs primarily in offshore wind, which could not be fully compensated by the positive developments. Still, the result was within the 2021 guidance range of CAD 1.1 billion to CAD 1.2 billion.

Northland Power expects an adjusted EBITDA in 2022 of between CAD 1.15 billion and CAD 1.25 billion. Development expenditures will be higher than in 2021, reaching roughly CAD 100 million in 2022.

The free cash flow per share is seen at CAD 1.2-1.4, with adjusted free cash flow of CAD 1.65-1.85 per share. This guidance does not include any sell-down proceeds, which, if present, would lift the company’s free cash flow.

Northland has 366 MW of projects under construction with completion expected this year, and 3 GW of gross capacity in mid- to late-stage development projects. The company expects to double its gross capacity by 2027, surpassing 6.5 GW.

(CAD 1 = USD 0.780/EUR 0.699)

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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