Please note that the English version of the press release issued
on August 6th at 7:00AM on CNW was not the correct version.
Boralex adds 743 MW to its project pipeline and increases its
EBITDA(A) by 23% in Q2-2021
Highlights for the 2nd quarter of 2021
- Increases in EBITDA(A) and discretionary cash flow
-
- EBITDA(A) of $106 million
($117 million)(1) in
Q2-2021, up 23% (10%) from $86
million ($107 million) in
Q2-2020.
- Discretionary cash flow of $149
million for the last 12 months, $7
million more than for the prior period.
- Total production greater than Q2-2020 production and
slightly below anticipated production(2)
-
- Q2-2021 vs Q2-2020: total production up 41% (22%), wind up 33%
(12%) and hydroelectric down 13%.
- Q2-2021 vs anticipated production: total production 5% (4%)
below, wind 2% (1%) below, hydroelectric 24% below and solar 4%
above.
- Contribution of recent acquisitions and commissioning of
projects in line with expectations
-
- An additional $32 million
($24 million) in EBITDA(A)
attributable to the acquired CDPQ equity interests in three wind
farms in Quebec, the acquired
interests in seven solar farms in the
United States and commissioning of projects.
- Addition of 743 MW in new projects and good progress on
development projects
-
- 553 MW in wind and solar projects and 190 MW in energy storage
projects added to the "Early-stage" phase of the project
pipeline.
- Four projects totalling 41 MW advanced to the "Secured" stage
of the Growth Path.
- The Bois des Fontaines (25 MW), Moulins du Lohan (65 MW) and
Bougainville repowering (6 MW) wind projects in France now at the "Ready-to-build" stage of
the Growth Path.
- Launch of the 2025 Strategic Plan with new corporate
objectives on June 17, 2021
MONTREAL, Aug. 6, 2021 /PRNewswire/ - During the quarter
ending June 30, 2021, Boralex Inc.
("Boralex" or the "Company") (TSX: BLX) continued to add new
projects to its project pipeline and to advance its existing
projects to the "secured" and "ready-to-build" stages of its
Growth Path. The Company also posted an increase in
EBITDA(A), primarily linked to the contribution of acquisitions and
project commissionings.
"The second quarter was marked by the addition of
743 MW to our project pipeline, notably in the solar and energy
storage markets in the United
States, identified in our new 2025 Strategic Plan as
key markets. The contribution of our two most recent acquisitions
in wind in Quebec and solar in the
US as well as commissioning of projects was in line with our
expectations and enabled us to continue growing our EBITDA(A)
despite the unfavourable hydraulic conditions arising from the low
level of precipitation in recent months," said Patrick Decostre,
President and Chief Executive Officer of Boralex.
Last June, Boralex updated its strategic plan to take advantage
of opportunities arising from the accelerated energy transition and
major changes in renewable energy development policies,
particularly in Québec, the United
States and a number of European countries.
Supported by a strong financial position, Boralex announced its
objective of doubling its installed capacity and reaching a
combined EBITDA(A) of $800‒850 million ($740‒790 million under
IFRS) and discretionary cash flow of $240‒260 million by 2025. This
represents compound annual growth rates of 9‒16% for these three
performance measures.
With respect to the Company's expectations for the next few
quarters, Mr. Decostre added: "We are in the final stages leading
up to our project submission for the New
York State request for proposals for solar projects. We are
very proud of the many high-quality projects and the capacity we
are in a position to offer. In the coming quarters, we will also
continue to seek acquisition opportunities and to implement the
various initiatives outlined in our 2025 Strategic Plan,
including the optimization of our capital structure and the
execution of our corporate social responsibility strategy."
_____________________________________
|
(1)
|
The figures in brackets indicate "combined" results
rather than those calculated according to IFRS. See the "Combined
EBITDA(A) — Non-IFRS Measures" section below.
|
(2)
|
Calculated based on
adjusted historical averages of commissioning and planned outages
for experimental and other sites, based on producible material
studies performed.
|
2nd quarter highlights
Three-month periods ended June
30
|
IFRS
|
Combined(1)
|
(in millions of
Canadian dollars, unless otherwise
specified)(unaudited)
|
2021
|
2020
|
Change
|
2021
|
2020
|
Change
|
|
|
$
|
%
|
|
|
$
|
%
|
Power production
(GWh)(2)
|
1,323
|
937
|
386
|
41
|
1,485
|
1,217
|
268
|
22
|
Revenues from energy
sales and
|
|
|
|
|
|
|
|
|
feed-in
premium
|
147
|
121
|
26
|
21
|
164
|
151
|
13
|
9
|
EBITDA(A)(1)
|
106
|
86
|
20
|
23
|
117
|
107
|
10
|
10
|
|
|
|
|
|
|
|
|
|
Net loss
|
(8)
|
(6)
|
(2)
|
(35)
|
(9)
|
(5)
|
(4)
|
(76)
|
Net loss attributable
to
|
|
|
|
|
|
|
|
|
shareholders of
Boralex
|
(13)
|
(6)
|
(7)
|
>(100)
|
(14)
|
(5)
|
(9)
|
>(100)
|
Per share - basic and
diluted
|
($0.13)
|
($0.07)
|
($0.06)
|
(94)
|
($0.13)
|
($0.05)
|
($0.08)
|
>(100)
|
|
|
|
|
|
|
|
|
|
Net cash flows
related to operating
|
|
|
|
|
|
|
|
|
activities
|
84
|
98
|
(14)
|
(15)
|
98
|
119
|
(21)
|
(17)
|
Cash flows from
operations(1)
|
66
|
51
|
15
|
28
|
73
|
66
|
7
|
11
|
|
Three-month periods
ended
|
Twelve-month periods
ended
|
(in millions of
Canadian dollars, unless otherwise
specified) (unaudited)
|
June 30,
|
June 30,
|
Change
|
|
June 30,
|
December
31
|
Change
|
2021
|
2020
|
$
|
%
|
2021
|
2020
|
$
|
%
|
Discretionary cash
flows(1) - IFRS
|
(7)
|
(14)
|
7
|
48
|
149
|
146
|
3
|
1
|
(1)
|
For more details, see
the Non-IFRS Measures section in the 2021 Interim Report 2
available on the websites of Boralex (boralex.com) and SEDAR
(sedar.com).
|
(2)
|
Power production
includes the production for which Boralex received financial
compensation following power generation limitations imposed by its
clients since management uses this measure to evaluate the
Corporation's performance. This adjustment facilitates the
correlation between power production and revenues from energy sales
and feed-in premium.
|
In the second quarter of 2021, Boralex generated 1,323 GWh
(1,485 GWh) of electricity, for an increase of 41% (22%) over the
937 GWh (1,217 GWh) generated in the same quarter in 2020. The
increase is attributable to recent acquisitions in the wind sector
in Quebec and the solar sector in
the United States, as well as the
commissioning of wind farms in France.
For the three-month period ended June 30, 2021, revenues from energy sales
amounted to $147 million
($164 million), up 21% (9%) from the
second quarter of 2020. The Company posted consolidated EBITDA(A)
of $106 million ($117 million) for the second quarter of 2021, 23%
(10%) higher than for the second quarter of 2020. The increases in
revenue and EBITDA(A) are attributable to the acquisitions and
commissioning of projects already mentioned above.
Boralex reported a net loss of $8
million ($9 million) for the
three-month period ended June 30,
2021, compared to a net loss of $6
million ($5 million) for the
corresponding period in 2020. As shown in the table above, the net
loss attributable to shareholders of Boralex was $13 million ($14
million) or $0.13 ($0.13) per share (basic and diluted), compared
to a net loss attributable to shareholders of Boralex of
$6 million ($5
million) or $0.07 ($0.05) per share (diluted) for the corresponding
period in 2020. The increase in the loss is attributable to the
addition of amortization and financial expenses related to
acquisitions and commissioning of projects.
Six-month periods ended June
30
|
IFRS
|
Combined
(1)
|
(in millions of
Canadian dollars, unless otherwise specified)
(unaudited)
|
2021
|
2020
|
Change
|
2021
|
2020
|
Change
|
|
$
|
%
|
|
$
|
%
|
Power production
(GWh)(2)
|
2,952
|
2,470
|
482
|
|
3,315
|
3,054
|
261
|
9
|
Revenues from energy
sales and
|
|
|
|
|
|
|
|
|
feed-in
premium
|
353
|
321
|
32
|
|
392
|
383
|
9
|
2
|
EBITDA(A)(1)
|
257
|
235
|
22
|
|
279
|
276
|
3
|
1
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
30
|
38
|
(8)
|
|
34
|
32
|
2
|
9
|
Net earnings
attributable to
|
|
|
|
|
|
|
|
|
shareholders of
Boralex
|
21
|
35
|
(14)
|
|
25
|
29
|
(4)
|
(12)
|
Per share - basic and
diluted
|
$0.20
|
$0.36
|
($0.16)
|
|
$0.25
|
$0.30
|
($0.05)
|
(17)
|
|
|
|
|
|
|
|
|
|
Net cash flows
related to operating activities
|
217
|
230
|
(13)
|
|
231
|
252
|
(21)
|
(8)
|
Cash flows from
operations(1)
|
181
|
175
|
6
|
|
198
|
203
|
(5)
|
(2)
|
|
|
|
|
|
|
|
|
|
|
As at
June 30
|
As at
Dec. 31
|
Change
|
As at
June 30
|
As at
Dec. 31
|
Change
|
|
$
|
%
|
|
|
$
|
%
|
Total
assets
|
5,706
|
5,314
|
392
|
7
|
6,123
|
5,753
|
370
|
6
|
Debt(3)
|
3,662
|
3,609
|
53
|
1
|
4,018
|
3,976
|
42
|
1
|
Projects
|
3,180
|
3,190
|
(10)
|
—
|
3,536
|
3,557
|
(21)
|
(1)
|
Corporate
|
482
|
419
|
63
|
15
|
482
|
419
|
63
|
15
|
(1)
|
See "Combined -
Non-IFRS measure" below.
|
(2)
|
Power production
includes the production for which Boralex received financial
compensation following power generation limitations imposed by its
clients since management uses this measure to evaluate the
Corporation's performance. This adjustment facilitates the
correlation between power production and revenues from energy sales
and feed-in premium.
|
(3)
|
Includes current
portion of debt and exclude transaction costs, net of accumulated
amortization. Project borrowings are normally amortized over the
life of the energy contracts of the related facilities and are
without recourse to the parent company.
|
For the six-month period ended June 30,
2021, Boralex generated 2,952 GWh (3,315 GWh) of
electricity, up 20% (9%) from 2,470 GWh (3,054 GWh) generated in
fiscal 2020. As mentioned for the second quarter results, the
increase is mainly due to acquisitions and commissioning of
projects.
For the six-month period ended June 30, 2021, revenues from energy sales
amounted to $353 million
($392 million), representing an
increase of $32 million ($9 million) or 10% (2%) compared to the
corresponding period in 2020. For the six-month period ended
June 30, 2021, the Company posted
consolidated EBITDA(A) of $257
million ($279 million), up
$22 million ($3 million) or 9% (1%) from last year. These
increases were attributable to the same factors mentioned above in
connection with the increase in generation.
Overall, for the six-month period ended
June 30, 2021, Boralex reported net
earnings of $30 million ($34 million) compared with net earnings of
$38 million ($32 million) for fiscal 2020. As shown in the
table above, net earnings attributable to shareholders of Boralex
amounted to $21 million ($25 million) or $0.20 ($0.25) per
share (basic and diluted), compared to net earnings attributable to
shareholders of Boralex of $35
million ($29 million) or
$0.36 ($0.30) per share (basic and diluted) for fiscal
2020. The decrease is mainly attributable to the addition of
amortization, acquisition costs and financial expenses related to
acquisitions and commissioning of projects, as well as accelerated
amortization for sites undergoing repowering.
Outlook
On June 17, 2021,
on the occasion of an Investor Day, management of Boralex presented
its updated strategic plan, which will guide efforts to achieve its
new corporate targets for 2025. The 2025 Strategic Plan
stems from a rigorous analysis of the rapid, significant changes
made to renewable energy development policies and greenhouse gas
emission reduction targets in certain countries and regions,
including Québec, numerous American states and several European
countries. It is also part of a process in which a deep and rapid
industry transformation is underway, partly due to the high number
of technological innovations and the acceleration of the green
energy transition. Boralex management also reported strong demand
for renewable energy from companies mindful of their environmental
impact. Together, these elements make for a business environment
that offers numerous opportunities for growth, both organic and
through acquisition.
Boralex's 2025 Strategic Plan is
structured around the four key strategic directions of the plan
launched in 2019 – growth, diversification, customers, and
optimization – and six corporate objectives. It also integrates
Boralex's corporate social responsibility (CSR) strategy. Focusing
on these key areas will allow for accelerated development of the
wind and solar portfolios in the high-potential markets already
targeted by Boralex and in new markets in Europe and the
United States, while also creating the opportunity to
introduce energy storage in regions where renewable energy networks
are the most developed.
See below for a summary of the plan, and the
management discussion and analysis for the second quarter of 2021
for an update on the progress made during the quarter on the
various initiatives related to the plan.
To successfully execute its 2025 Strategic Plan and
achieve its financial objectives, the Company relies on its strong
expertise in developing projects of various sizes in markets with
complex development processes, which is a key asset when it comes
to taking advantage of opportunities in increasingly competitive
markets such as solar energy.
The Company has a pipeline of projects at various
stages of development defined on the basis of clearly identified
criteria, totalling 3,075 MW in wind and solar projects and
190 MW in energy storage projects, as well as a 630 MW Growth
Path, as illustrated below.
Installed capacity
(1)
|
The Evits et Josaphat
repowering project represents a total capacity of 14 MW with an
increase of 2 MW, the Remise de Reclainville repowering project
represents a total capacity of 14 MW with an increase of 2 MW, the
Bougainville repowering project represents a total capacity of 18
MW with an increase of 6 MW and the Mont de Bézard 2 repowering
project represents a total capacity of 25 MW with an increase of 13
MW.
|
(2)
|
The Corporation holds
50% of the shares of the 200 WM wind power project but does not
have control over it.
|
(3)
|
The total project
investment and the estimated annual EBITDA for projects in France
have been translated into Canadian dollars at the closing rate on
June 30, 2021.
|
To ensure that the execution of the strategic plan results in
disciplined growth and the creation of shareholder value, Boralex
management is monitoring the criteria used to develop the 2025
corporate objectives described below. See the management discussion
and analysis for the second quarter of 2021 for an update on the
progress made against the targets.
Dividend declaration
The Company's Board of Directors has authorized
and announced a quarterly dividend of $0.1650 per common share. This dividend will be
paid on September 16, 2021, to
shareholders of record at the close of business on August 31, 2021. Boralex designates this dividend
as an "eligible dividend" pursuant to paragraph 89(14) of the
Income Tax Act (Canada) and all
provincial legislation applicable to eligible dividends.
About Boralex
At Boralex, we have been providing affordable
renewable energy accessible to everyone for over 30 years. As a
leader in the Canadian market and France's largest independent producer of
onshore wind power, we also have facilities in the United States and development projects in
the United Kingdom. Our installed
capacity has more than doubled over the past five years and now
stands at 2.5 GW. We are developing a portfolio of more than 3
GW in wind and solar projects and nearly 200 MW in storage
projects, guided by our values and our approach to corporate social
responsibility (CSR). Through profitable and sustainable growth,
Boralex is actively participating in the fight against global
warming. Thanks to our fearlessness, our discipline, our expertise
and our diversity, we continue to be an industry leader. Boralex's
shares are listed on the Toronto Stock Exchange under the ticker
symbol BLX.
For more information, visit www.boralex.com or
www.sedar.com. Follow us on Facebook, LinkedIn and Twitter.
Disclaimer regarding forward-looking
statements
Certain statements contained in this release,
including those related to results and performance for future
periods, installed capacity targets, EBITDA(A) and discretionary
cash flows, the Company's strategic plan, business model and growth
strategy, organic growth and growth through mergers and
acquisitions, obtaining an investment grade credit rating by 2025,
maintaining a quarterly dividend of $0.165 per share, the Company's financial targets
and portfolio of renewable energy projects, the Company's Growth
Path and its Corporate Social Responsibility (CSR) objectives
are forward-looking statements based on current forecasts, as
defined by securities legislation. Positive or negative verbs such
as "will," "would," "forecast," "anticipate," "expect," "plan,"
"project," "continue," "intend," "assess," "estimate" or "believe,"
or expressions such as "toward," "about," "approximately," "to be
of the opinion," "potential" or similar words or the negative
thereof or other comparable terminology, are used to identify such
statements.
Forward-looking statements are based on major
assumptions, including those about the Company's return on its
projects, as projected by management with respect to wind and other
factors, opportunities that may be available in the various sectors
targeted for growth or diversification, assumptions made about
EBITDA(A) margins, assumptions made about the sector realities and
general economic conditions, competition, exchange rates as well as
the availability of funding and partners. While the Company
considers these factors and assumptions to be reasonable, based on
the information currently available to the Company, they may prove
to be inaccurate.
Boralex wishes to clarify that, by their very
nature, forward-looking statements involve risks and uncertainties,
and that its results, or the measures it adopts, could be
significantly different from those indicated or underlying those
statements, or could affect the degree to which a given
forward-looking statement is achieved. The main factors that may
result in any significant discrepancy between the Company's actual
results and the forward-looking financial information or
expectations expressed in forward-looking statements include the
general impact of economic conditions, fluctuations in various
currencies, fluctuations in energy prices, the Company's financing
capacity, competition, changes in general market conditions,
industry regulations, litigation and other regulatory issues
related to projects in operation or under development, as well as
other factors listed in the Company's filings with the various
securities commissions.
Unless otherwise specified by the Company,
forward-looking statements do not take into account the effect that
transactions, non-recurring items or other exceptional items
announced or occurring after such statements have been made may
have on the Company's activities. There is no guarantee that the
results, performance or accomplishments, as expressed or implied in
the forward-looking statements, will materialize. Readers are
therefore urged not to rely unduly on these forward-looking
statements.
Unless required by applicable securities
legislation, Boralex's management assumes no obligation to update
or revise forward-looking statements in light of new information,
future events or other changes.
Percentage figures are calculated in thousands of
dollars.
Combined - Non-IFRS measures
The combined EBITDA(A) shown above and in the
Company's management report results from the combination of Boralex
Inc.'s ("Boralex" or the "Company") financial information,
established in accordance with IFRS, and data relating to the share
of Investments. The Investments represent significant investments
by Boralex, and although IFRS don't allow for their financial
information to be combined with Boralex's information, Management
considers the combined EBITDA(A) to be useful data in assessing the
Company's performance. In order to calculate the combined
EBITDA(A), Boralex first prepared its financial statements and
those of Investments, in accordance with IFRS. Next, the items
Investments in Associates and Joint Ventures, Share of Profits
(Losses) of Associates and Joint Ventures and Distributions
Received from Associates and Joint Ventures are replaced with
Boralex's respective share (ranging from 50.00% to 59.96%) in all
items of the Investments' financial statements (i.e., revenue,
expenses, assets, liabilities, etc.). For more information, please
refer to the note Investments in Associates and Joint Ventures in
the annual audited consolidated financial statements for the fiscal
year ended December 31, 2020.
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