Northland Power's profit slightly up in Q2

The first of 31 monopile foundation is installed at Deutsche Bucht. Image by: Northland Deutsche Bucht.

August 9 (Renewables Now) - Canada-based Northland Power Inc (TSE:NPI) reported a second-quarter net profit of CAD 76.2 million (USD 57.5m/EUR 51.3m), growing by more than 10% year-on-year even as offshore wind and solar power generation decreased.

A combination of increased gross profit and a lower tax expense brought the difference.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) grew to CAD 194 million from CAD 183 million a year ago, mainly thanks to a 19% increase to CAD 61 million in thermal power EBITDA. In offshore wind, adjusted EBITDA climbed by CAD 3 million to USD 106 million due to lower plant operating costs. The result for onshore renewables was CAD 39 million, down by 9% because of lower solar output and higher plant operating costs at certain wind parks.

Northland Power’s sales in the second quarter inched up by 1.7% to CAD 343.8 million. Details are available in the table.

Results in CAD Q2 2019 Q2 2018 H1 2019 H1 2018
Sales 343.8 338.2 842.4 824.5
- of which offshore wind 193.1 192.6 503.4 508.7
Adjusted EBITDA 194 183 487.7 473.4
- of which offshore wind 106.3 103.7 293.5 290.2
Net profit 76.2 69 280.5 247
Earnings per basic share (in dollars) 0.28 0.29 1.06 0.9
Free cash flow 35.2 37 177 185
Free cash flow per basic share (in dollars) 0.20 0.21 0.98 1.05
Electricity generation (in GWh) 1,797 1,790 4,336 4,117
- of which offshore wind 645 694 1,670 1,702

Currently, Northland Power has an economic interest in 2,014 MW of net capacity. It is also building a 130-MW solar farm in Mexico, known as the La Lucha solar project, and the 269-MW Deutsche Bucht offshore wind farm in the German North Sea. In Taiwan, the company is developing an offshore wind project of 1,044 MW across several phases.

The management of Northland Power still expects 2019 the adjusted EBITDA to reach CAD 920 million-1.01 billion. Free cash flow per share is seen in the range of CAD 1.65 to CAD 1.95.

(CAD 1 = USD 0.75/EUR 0.67)

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