Texas cold spell, impairments push Innergex into deeper 2021 loss

The Flat Top wind park in central Texas. Source: Innergex

February 24 (Renewables Now) - Canadian power producer Innergex Renewable Energy Inc (TSE:INE) saw its net loss widen to CAD 185.4 million (USD 144.9m/EUR 128.9m) in 2021, mainly due to adverse impacts from the extreme winter conditions in Texas and impairment charges.

In the year-ago period, Innergex registered a net loss of CAD 29.1 million. The company explained on Wednesday that its bottom line result in 2021 was burdened by a 16% increase in operating, general, administrative and prospective projects expenses made to support its growth and a CAD-81.3-million negative impact after the Texas freeze in February. Additionally, some CAD 112.6 million in impairment charges were recognised from the company’s share of loss of the Flat Top and Shannon joint venture facilities, which were sold after February 2021, whereas a CAD-271-million increase in depreciation and amortisation was booked as a result of acquisitions in Chile and the US.

On a positive note, Innergex enjoyed increased power production after making acquisitions and bringing new capacity online. Revenues on a normalised basis, excluding the Texas events, rose by 13% on the year, while the increase on a proportionate basis was 5%. The improvement came mainly as a result of liquidated damages due from the engineering, procurement and construction (EPC) contractor for loss of revenues caused by the delays in and the commissioning of the 200-MW Hillcrest solar farm in Ohio, the acquisition of the remaining 50% interest in Chile’s Energia Llaima, the commissioning of the 225.6-MW Griffin Trail wind facility in Texas and higher production at the most plans in British Columbia. Lower generation from wind parks in Quebec and France partly offset the increase.

Further details about Innergex’s performance are available in the table. Results on a normalised basis do not take into account the Texas events.

Figures in CAD, unless otherwise noted Q4 2021 Q4 2020 2021 Normalised 2021 2020
Production (MWh) 2,583,157 2,186,961 9,055,215 9,055,215 8,073,914
Production Proportionate (MWh)

2,676,157

2,573,358 9,853,366 9,853,366 9,590,140
Revenues 202.4 167.9 692.2 747.2 613.2
Revenues Proportionate 231.1 211.4 817.9 913.1 781.5
Adjusted EBITDA 137.3 117.8 470.7 525.6 422.1
Adjusted EBITDA Proportionate 163 152.9 578.5 673.7 560.3
Net earnings (loss) 5.7 11.9 (121.2) (185.4) (29.1)
Adjusted net earnings (loss) (10) 13 (7) (7) 22.3

2,676,157

In 2021, the Canadian firm commissioned 430 MW of wind and solar parks and acquired 131 MW of capacity through the purchase of the 60-MW Curtis Palmer run-of-river hydroelectric portfolio in New York and by taking control of Chile’s Energia Llaima and Empresa Electrica Lican SA. Innergex closed 2021 with a net installed capacity of 3,101 MW.

"Our goal in 2022 is to consolidate and expand our current position by continuing to diversify our portfolio of assets [..],” said CEO Michel Letellier.

This year, Innergex will seek to lift its net installed capacity to 3,156 MW, expecting its production to rise by 18% as compared to 2021. Revenues and adjusted EBITDA are forecast to grow by 16% and 15%, respectively, in annual terms.

(CAD 1.0 = USD 0.782/EUR 0.695)

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