Northland Power's EBITDA grows 14% with wind, solar help

GeoSea vessel carries N1 foundation pieces. Source: Northland Power Inc.

Canada-based company Northland Power Inc (TSE:NPI) yesterday reported adjusted EBITDA of CAD 103.9 million (USD 79m/EUR 72m) for the second quarter of 2016, up 14% year-over-year.

The improvement came as a result of the full commissioning of the 100-MW Grand Bend wind farm in Ontario, contributions from new ground-mounted solar plants and positive contributions other operating facilities, including thermal power plants.

Sales and gross profit grew by 6% and 21%, respectively, for similar reasons. Net profit, however, dropped to CAD 23.4 million from CAD 140.3 million due to marked-to-market non-cash adjustments on Northland's financial derivative contracts. More figures are available in the table.

Results in CAD million	Q2 2016	Q2 2015	H1 2016	H1 2015
Sales	176.6	167.3	354.8	368.9
Adjusted EBITDA	103.9	91.4	207.9	188.5
Net profit (loss)	23.4	140.3	(68.3)	109.7
Free cash flow	46.3	34.6	91.2	84.8
Free cash flow per share (CAD/share)	0.270	0.204	0.531	0.520

Northland Power confirmed its guidance for full-year adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of CAD 500 million-530 million, including pre-completion revenues of EUR 80 million-90 million (USD 88m-99m) from the 600-MW Gemini wind farm off the Netherlands coast. Free cash flow per share is seen at CAD 0.93-1.08.

The company said it is actively pursuing new opportunities in natural gas, wind, solar and hydro. Its targeted markets include Canada, Europe, Mexico, Taiwan and the US.

Currently, Northern Power has a net economic interest in 1,394 MW of capacity. It also has a 60% equity stake in the Gemini project and an 85% equity stake in the 332-MW Nordsee One offshore wind project. Both will be fully operational in 2017.

(CAD 1 = USD 0.759/EUR 0.690)

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