March 25 (Renewables Now) - Boralex Inc (TSE:BLX) today reassured its investors that at this time of pandemic the Canadian renewable energy company finds itself with a strong balance sheet and solid long-term power supply contracts.
The company said in a statement that it is on track to fulfil its strategic orientations and financial goals for 2023 and that so far it has not encountered any supply problems arising from the COVID-19 crisis.
Boralex, which operates renewable energy plants in Canada, France, the US and the UK, noted that through certain modifications it has secured the electrical production of its facilities and has also come up with a backup plan for its sites under construction. The teams in charge of operations and site maintenance have been reorganised to limit contact among them, while all remaining employees work remotely from home.
A positive note for the company is that 97% of its output is contracted at set and indexed prices with major government corporations for an average remaining term of 13 years. According to Boralex, those contracts do not contain clauses for price or production adjustments in the event of a situation like the coronavirus pandemic.
The power producer pointed out that in 2019 it carried out over CAD 2 billion (USD 1.39bn/EUR 1.29bn) in refinancing under advantageous conditions and currently has CAD 208 million still available under a CAD-450-million corporate revolving credit facility. None of its loans need to be renewed before 2023 for its corporate revolving credit facility, the company said, adding that the next renewal for its subordinated debt will be in 2028.
Boralex generated CAD 120 million in discretionary cash flows last year and anticipates further significant amounts in 2020.
(CAD 1.0 = USD 0.697/EUR 0.645)