Release of first quarter results of Boralex: production, revenues from energy sales and EBITDA(A) reach new highs
Boralex Inc. (“Boralex” or the “Corporation”) (TSX: BLX) announced today its financial results for the first quarter ended March 31, 2017. Production, revenues from energy sales and EBITDA(A) reached new quarterly highs.
In commenting on the quarter’s achievements, Patrick Lemaire, President and Chief Executive Officer noted, “Our most recent results clearly demonstrate the advantages of our geographical diversification, and they also highlight our ability to grow our pipeline of projects and seize attractive acquisition opportunities to the benefit of our shareholders and partners.”
Boralex benefited in particular from the contribution of the Niagara Region Wind Farm (NRWF) acquired early in the year, the addition of four new power generation facilities in 2016, and the solid performance of the majority of its North American assets. These factors combined to offset the effect of less favourable wind conditions in France.
Financial highlights
During the first quarter, Boralex closed the largest acquisition in its history, the 230 MW NRWF wind farm, which represented an immediate increase of over 20 % in its installed capacity. Concurrently, the Corporation issued 10.4 million additional shares, reflecting the conversion of subscription receipts offered in December 2016 at the time of the initial announcement of the transaction. As a result of the transaction, the total number of outstanding shares of Boralex increased by about 16 % to 75.8 million. At the same time, Boralex’s float increased to more than 57 million shares, representing close to 76 % of outstanding shares.
Following this significant transaction and in recognition of its new size and enhanced liquidity profile, Boralex has also been listed on the S&P/TSX Composite Index. As the Index is one of the key indicators used by Canadian portfolio managers to measure relative performance, this important milestone is expected to support the future liquidity of Boralex’s securities.
| Three-month periods ended March 31 | ||||
| FINANCIAL HIGHLIGHTS
(in $M, unless otherwise specified) |
2017 | 2016 | 2017 | 2016 |
| IFRS | Proportionate
consolidation(1) |
|||
| Power production (GWh) | 909 | 821 | 1,063 | 973 |
| Revenues from energy sales | 119 | 106 | 136 | 122 |
| EBITDA(A)(2) | 87 | 80 | 97 | 90 |
| EBITDA(A) margin (%) | 73 | 75 | 72 | 74 |
| Net earnings | 16 | 23 | 16 | 23 |
| Net earnings attributable to shareholders of Boralex | 16 | 21 | 16 | 21 |
| Per share (basic) | $0.22 | $0.32 | $0.22 | $0.32 |
| Per share (diluted) | $0.21 | $0.30 | $0.21 | $0.30 |
| Net cash flows related to operating activities | 54 | 76 | 60 | 82 |
| Cash flows from operations(3) | 58 | 60 | 69 | 70 |
| (1) | These amounts are adjusted on a proportionate consolidation basis; a non-IFRS measure. 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
For the quarter, the Corporation reported revenue from energy sales growth of 12 % to $119 million (or 11 % to $136 million under proportionate consolidation) and EBITDA(A) growth of 9 % to $87 million (or 8 % to $97 million under proportionate consolidation), while its EBITDA(A) margin eased slightly to 73 % from 75 % in 2016 (to 72 % from 74 % under proportionate consolidation).
Boralex’s cash flows from operations amounted to $58 million ($69 million under proportionate consolidation) compared with $60 million ($70 million under proportionate consolidation) for the quarter ended March 31, 2016.
Lastly, under both IFRS and proportionate consolidation, Boralex’s net earnings attributable to shareholders amounted to $16 million ($0.22 per share (basic)) compared with net earnings of $21 million ($0.32 per share(basic)) in 2016.
Outlook
Fiscal 2017 will see growth in Boralex’s hydroelectric and wind power segment operating results driven by contributions from the 270 MW in capacity commissioned or acquired in 2016 and early 2017 and the power stations slated for commissioning during the year. By the end of fiscal 2017, five new wind farms totalling 76 MW and the 16 MW Yellow Falls hydroelectric power station are to be commissioned.
In 2018, Boralex will significantly expand its growth path with the addition of 79 MW in new projects located in France, scheduled for commissioning during the year. In 2019, the Corporation intends to commission its 50 MW Otter Creek wind farm in Canada following its recent acquisition of a majority interest in the project, contributing an additional 31 MW to its growth path.
Lastly, taking into account the 110 MW in projects added to the growth path in the first quarter of 2017 and the strength of its project portfolio, Boralex continues to target an installed capacity of 2,000 MW by the end of 2020, representing an anticipated annual compound growth rate of over 10%.
DIVIDEND DECLARATION
The Corporation’s Board of Directors has authorized and declared a quarterly dividend of $0.15 per common share to be paid on June 15, 2017 to shareholders of record at the close of business on May 31, 2017. 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.
Source:PRN
