Canadian renewable power producer Boralex Inc (TSE:BLX) saw its attributable net loss more than double to CAD 44 million (USD 33m/EUR 32.3m) in the third quarter of 2022 compared to a year earlier, after costs in France dented its operating performance.
In the three months, Boralex recognised a provision totalling CAD 28 million related to retroactive amendments in the regulations for feed-in premium contracts in France that require it to return revenues in excess of the market price since January 1, 2022. Unfavourable winds in France and lower hydropower resources in the US also had a negative effect on the company’s performance, leading to a drop in power production and lower energy sales, it said on Wednesday.
Due to the provision, earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 38% to CAD 50 million and the operating result turned to a loss of CAD 31 million, against a profit of CAD 7 million a year back.
At CAD 101 million, revenues from energy sales and feed-in premiums decreased by 20% on a yearly basis, hit by the provision and an 8% year-on-year drop in power output.
More details on the company’s performance are available in the table below. In addition to consolidated IFRS results, Boralex provides figures on a “Combined” basis, which include “Interests” representing significant investments that cannot be consolidated under IFRS but are considered important for evaluating the company’s overall performance.
| Amounts in CAD million |
Q3 2022 |
Q3 2021 |
| CONSOLIDATED |
|
|
| Power production (GWh) |
1,019 |
1,108 |
| Revenues from energy sales and feed-in premium |
101 |
126 |
| EBITDA |
50 |
81 |
| Net earnings (loss) |
(56) |
(22) |
| Net earnings (loss) attributable to shareholders |
(44) |
(20) |
| Cash flows from operations |
40 |
66 |
| COMBINED |
|
|
| Power production (GWh) |
1,159 |
1,238 |
| Revenues from energy sales and feed-in premium |
116 |
140 |
| EBITDA |
63 |
93 |
| Net earnings (loss) |
(56) |
(22) |
| Net earnings (loss) attributable to shareholders |
(44) |
(20) |
The Canadian firm will distribute a quarterly dividend of CAD 0.165 per common share. The payout will be allocated on December 15 to shareholders of record on November 30.
“I am highly optimistic about our future growth. The opportunities for development in the renewable energy industry are stronger than ever,” said president and CEO Patrick Decostre.
At the end of September, Boralex had an installed capacity base of 2.5 GW and was developing a portfolio of 4 GW of wind and solar and almost 800 MW of energy storage projects. In the third quarter alone, its portfolio expanded with 600 MW of storage and 111 MW of wind and solar photovoltaic (PV) schemes.
(CAD 1.0 = USD 0.751/EUR 0.735)
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Wind farm in Canada. Image by: Boralex (www.boralex.com).
