Boralex announces its results for the third quarter
Boralex Inc. announced recently its results for the third quarter ended September 30, 2016. The Corporation recorded stable revenues from energy sales of $53.9 million (up 2% to $66.2 million under proportionate consolidation) and an 11% decline in EBITDA(A) to $24.6 million (down 8% to $35.2 million under proportionate consolidation) while EBITDA(A) margin decreased from 51% in 2015 to 46% in 2016 (from 59% to 53% under proportionate consolidation).
Commenting on the quarterly results as well as recent achievements, Boralex President and Chief Executive Officer Patrick Lemaire pointed out, “Despite these below-than-expected results stemming from weather conditions well beyond our control, we keep developing our projects while continuing to enhance our pipeline. The additions made in this respect during the third quarter also offer sustained growth prospects in the medium term. What’s more, with our excellent financial flexibility, we can develop our projects pipeline with returns exceeding our cost of capital, thereby continuing to create value for our shareholders.”
As at today, Boralex has 224 MW of projects under construction, including the wind power projects in France announced today, namely Le Pelon (10 WM) and Chemin de Grès (30 MW). Factoring in these additions as well as other growth opportunities yet to be identified, Boralex expects to achieve its target of an asset base of over 1,650 MW by the end of 2020, which is equivalent to nearly 50% growth from its current level. Furthermore, against the background of a changing regulatory environment in France, the Corporation confirms that it owns the equivalent of 87 MW of projects ready to build and for which connection to the grid and a pre-determined fixed rate are assured. Finally, Boralex expects to secure the long term agreements in France associated with indexed feed-in-tariff for 200 to 250 MW of its projects by the end of the year.
FINANCIAL HIGHLIGHTS
Under proportionate consolidation, power production and revenues from energy sales are up compared with the same quarter of 2015, reflecting in particular the contribution of six new sites commissioned in the second half of 2015 as well as the contribution of a new wind farm commissioned at the beginning of August 2016 in France. However, with respect to EBITDA(A), the contribution of these new sites did not offset the impact of significantly less favourable weather conditions, primarily for the existing wind farms in France and the hydroelectric power stations in the United States. Under IFRS, power production and revenues from energy sales were relatively stable while EBITDA(A) decreased by about 11% (from $27.7 million to $24.6 million).
Boralex’s cash flows from operations amounted to $13.2 million as at September 30, 2016 ($9.4 million under proportionate consolidation) compared with $31.8 million ($17.2 million under proportionate consolidation) for the three-month period ended September 30, 2015. Last, the Corporation recorded a net loss attributable to shareholders of Boralex of $10.4 million ($0.16 per share) compared with a loss of $15.4 million ($0.32 per share) in 2015. Under proportionate consolidation, the Corporation recorded a net loss attributable to shareholders of Boralex of $16.8 million ($0.26 per share) compared with a net loss of $15.4 million ($0.32 per share) in 2015.
| FINANCIAL HIGHLIGHTS | Three-month periods ended September 30 | ||||
| (in millions of dollars, except production, EBITDA(A) margin and per share amounts) | 2016 | 2015 | 2016 | 2015 | |
| IFRS | Proportionate Consolidation(1) | ||||
| Production (GWh) | 457.7 | 458.4 | 572.0 | 563.3 | |
| Revenues from energy sales | 53.9 | 53.9 | 66.2 | 65.1 | |
| EBITDA(A)(2) | 24.6 | 27.7 | 35.2 | 38.4 | |
| EBITDA(A) margin (%) | 46 | 51 | 53 | 59 | |
| Net loss | (9.9) | (14.9) | (16.2) | (14.9) | |
| Net loss attributable to shareholders of Boralex | (10.4) | (15.4) | (16.8) | (15.4) | |
| Per share (basic and diluted)($) | (0.16) | (0.32) | (0.26) | (0.32) | |
| Net cash flows related to operating activities | 12.2 | 22.2 | 9.6 | 7.8 | |
| Cash flows from operations(3) | 13.2 | 31.8 | 9.4 | 17.2 | |
| FINANCIAL HIGHLIGHTS | Nine-month periods ended September 30 | ||||
| (in millions of dollars, except production, EBITDA(A) margin and per share amounts) | 2016 | 2015 | 2016 | 2015 | |
| IFRS | Proportionate Consolidation(1) | ||||
| Production (GWh) | 1,845.0 | 1,542.7 | 2,222.5 | 1,959.4 | |
| Revenues from energy sales | 224.9 | 184.6 | 265.6 | 229.3 | |
| EBITDA(A)(2) | 142.2 | 115.5 | 174.0 | 147.3 | |
| EBITDA(A) margin (%) | 63 | 63 | 66 | 64 | |
| Net earnings (loss) | 6.1 | (13.9) | (0.3) | (13.9) | |
| Net earnings (loss) attributable to shareholders of Boralex | 2.8 | (16.4) | (3.5) | (16.4) | |
| Per share (basic and diluted)($) | 0.04 | (0.34) | (0.05) | (0.34) | |
| Net cash flows related to operating activities | 116.7 | 84.3 | 123.6 | 81.5 | |
| Cash flows from operations(3) | 100.2 | 91.3 | 107.9 | 87.4 | |
| (1) | These amounts are adjusted under proportionate consolidation and are non-IFRS measures. See the Reconciliations between IFRS and Proportionate Consolidation and Non-IFRS Measures sections in the Interim Report available on the websites of Boralex (boralex.com) and SEDAR (sedar.com). | ||||
| (2) | EBITDA(A) consists of earnings before interest, taxes, amortization and depreciation, adjusted to include other items. For more details, see the Non-IFRS Measures section in the Interim Report available on the websites of Boralex (boralex.com) and SEDAR (sedar.com). | ||||
| (3) | This is a non-IFRS measure. For more details, see the Non-IFRS Measures section in the Interim Report available on the websites of Boralex (boralex.com) and SEDAR (sedar.com). | ||||
OPERATIONAL HIGHLIGHTS
Regarding operations, besides the commissioning of the 14 MW Touvent wind farm in early August 2016, Boralex completed, during the quarter, the acquisition of a portfolio of wind power projects of nearly 200 MW located in France and in Scotland, including the 51 MW Moulin de Lohan project in France for which construction has already begun. Boralex has also been selected by the Innu Nation as a partner to develop the Apuiat project, a 200 MW wind farm on public land located in the municipality of Port-Cartier in Québec’s Côte-Nord region. To implement this large-scale project, Boralex will partner with Renewable Energy Systems Canada Inc. (“RES”) to draw on their respective experience and expertise in the development, design and construction of renewable energy projects. The land had been awarded to the Innu Nation under the 2006-2015 Energy Policy.
OUTLOOK
Fiscal 2016 will see solid growth in Boralex’s wind power segment operating results, as evidenced by the results for the nine-month period ended September 30, 2016. Two other wind power sites totalling 22 MW will be commissioned by the end of fiscal 2016, namely the 10 MW Port Ryerse wind farm in Ontario, Canada and the first phase of the 12 MW Plateau de Savernat wind farm in France. Boralex has also confirmed that it will exercise its option to acquire a 25% economic interest in the 230 MW Niagara Region Wind Farm project in Ontario, the closing of which is expected around December 31, 2016. Commissioning took place on October 30, 2016.
DIVIDEND DECLARATION
The Corporation’s Board of Directors has authorized and declared a quarterly dividend of $0.14 per common share to be paid on December 15, 2016 to shareholders of record at the close of business on November 30, 2016. Boralex has designated this dividend as an eligible dividend within the meaning of Section 89.14 of the Income Tax Act (Canada) and all provisions of provincial laws applicable to eligible dividends.
