Northland Power Inc’s (TSE:NPI) profits in the first quarter (Q1) of 2017 jumped with the help of the now fully completed 600-MW Gemini offshore wind farm in the Netherlands.
On Tuesday the company reported adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of CAD 198.1 million, up by 91% year-on-year. The increase was due to Gemini pre-completion revenues and overall positive contributions from Northland's operating facilities.
Higher operating income in combination with mark-to-market non-cash adjustments on Northland's financial derivative contracts resulted in a net profit of CAD 100.1 million, versus a net loss of CAD 91.7 million a year ago. The company would have booked an additional CAD 26.9 million in mark-to-market gains if it had not applied hedge accounting under IFRS 9.
More details on Northland’s quarterly performance are available in the table.
|All in CAD million
|Net income (loss)
|Cash provided by operating activities
|Free cash flow
|Free cash flow per share (in USD)
|Electricity sales volume (in TWh)
The company’s management continues to expect adjusted EBITDA of CAD 660 million-710 million for the full 2017.
Free cash flow per share is seen at CAD 1.03-1.18 in 2017. In the first quarter it was down because Gemini was still considered under construction as at March 31 and its results were not included in free cash flow. The effect on cash flow of the increase in adjusted EBITDA was offset by higher interest related to the 100-MW Grand Bend wind farm in Ontario and scheduled debt repayments.
NORTHLAND’S OFFSHORE WIND
The company holds a 60% stake in Gemini, which became fully operational at end-April. Northland also has an 85% equity interest in the 332-MW Nordsee One offshore wind project, which currently has 14 turbines installed. All 54 machines in the latter project should be up and ready to run by the end of the year.
In Q1 Northland agreed to add another offshore wind project to its portfolio with a deal for 100% of the 252-MW Deutsche Bucht scheme. Completion of the acquisition is expected in the next few months.
Thanks to Gemini, offshore wind power production in Q1 rose by 618,252 MWh on the year. Offshore wind sales and adjusted EBITDA for Northland stood at CAD 177.4 million and CAD 95.9 million, respectively.
Onshore renewables in the company’s portfolio produced by 106,454 MWh more than a year before thanks to the Grand Bend facility, and other wind and solar power plants.
Northland actively pursues new power development opportunities in natural gas, wind, solar and hydro.
(CAD 1 = USD/EUR)
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