Innergex Renewable Energy Inc (TSE:INE) posted higher third-quarter revenues and slightly improved adjusted EBITDA, fuelled by the strong contribution of its wind and solar power generation segments.
The Canadian renewable energy company has a portfolio of wind, solar and hydropower plants in the US, Canada, Chile and France with a total net installed capacity of 2.74 GW, as well as 150 MWh of energy storage capacity.
On Tuesday, Innergex reported third-quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of CAD 108.5 million (USD 83.3m/EUR 70.4m), slightly up from CAD 107.4 million a year before, while on a proportionate basis the result climbed by 6% in to CAD 151.4 million. The improvement mirrors the increased adjusted EBITDA proportionate at the wind power generation segment, which brought CAD 64.7 million, or 33% more than a year back, thanks to capacity additions, acquisitions and increased production from joint venture facilities in the US.
At CAD 14.3 million, meanwhile, the solar business’ adjusted EBITDA proportionate rose by 5% on the year, mainly due to new capacity going online.
Net profit from continuing operations came at CAD 7.5 million, falling from CAD 9.9 million a year earlier, while revenues gained 14% to CAD 162.7 million. More details on the company’s financial performance are available in the table.
|
Figures in CAD, unless otherwise noted
|
Q3 2020 |
Q3 2019 |
9mo 2020 |
9mo 2019 |
| Production (GWh) |
2,021.6 |
1,665.4 |
5,887 |
4,715.8 |
| Production Proportionate (GWh) |
2,471.1 |
2,149.2 |
7,016.8 |
5,876 |
| Revenues |
162.7m |
142.8m |
445.3m |
413.9m |
| Revenues Proportionate |
213.7m |
186.9m |
570.1m |
511.5m |
| Adjusted EBITDA |
108.5m |
107.4m |
304.3m |
305.8m |
| Adjusted EBITDA Proportionate |
151.4m
|
142.9m |
407.4m |
377m |
| Net profit (loss) from continuing operations |
7.5m |
9.9m |
(41m) |
(5m) |
| Adjusted net profit (loss) from continuing operations |
13.4m |
13.6m |
9.3m |
(443,000) |
Commenting on the COVID situation, Innergex said that power production remained intact at all segments as output is sold mainly through power purchase agreements (PPAs). Curtailments related to BC Hydro’s inability to buy electricity under existing off-take arrangements in the pandemic setting have been disputed.
Direct costs related to measures undertaken amid the COVID-19 spread and potential savings from reduced travel have been immaterial, the Canadian firm added.
During the reporting period, Innergex continued work on projects under construction, including the Hillcrest solar project in Ohio, the Innavik hydropower project in Quebec and the Yonne wind farm extension in France. It also recently started work on the Griffin Trail wind project in Texas.
"We strongly believe in our strategy to couple development activities with strategic acquisitions to not only create additional value but also to meet our growth objectives,” said president and CEO Michel Letellier.
(CAD 1.0 = USD 0.767/EUR 0.649)
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Mesgi’g Ugju’s’n wind farm. Image by www.muwindfarm.com
