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)
-
- Total production: up 41% (22%) from Q2-2020 and 5% (4%) below
anticipated production.
- Wind production: up 33% (12%) from Q2-2020 and 2% (1%) below
anticipated production.
- Hydroelectric production: down 13% from Q2-2020 and 24% below
anticipated production.
- Solar production: 4% above anticipated production.
- Contribution of recent acquisitions and project
commissionings 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 project commissionings.
- Addition of 743 MW in new projects and good progress on
development projects
-
- 553 MW in wind and solar projects in the United States, Canada and France added to the "Early-stage" phase of the
project pipeline.
- 190 MW in energy storage projects in the United States added to the "Early-stage"
phase of the project pipeline.
- Three projects totalling 31 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.
- The Extension Plaine d'Escrebieux wind farm in France commissioned on August 1, 2021, adding 14 MW to the total
installed capacity.
- June 17, 2021, launch of the
2025 Strategic Plan with new corporate objectives.
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, including in the solar energy and energy storage
markets in the United States,
identified in our new 2025 Strategic Plan as key markets,"
said Patrick Decostre, President and Chief Executive Officer of
Boralex. "The contribution of our two most recent acquisitions and
our project commissionings 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."
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 9‒15% 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)
|
Calculated based on
adjusted historical averages of commissioning and planned outages
for experimental and other sites, based on producible material
studies performed.
|
(2)
|
The figures in
brackets reflect the combined EBITDA(A), versus those calculated
according to the IFRS. See the "Combined EBITDA(A) — Non-IFRS
Measures" section below.
|
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, representing an increase of 41% (22%)
over the 937 GWh (1,217 GWh) for 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 ending June
30, 2021, revenues from energy sales amounted to
$147 million ($164 million), up 21% (10%) 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
commissionings already mentioned above.
Boralex reported a net loss of $8
million ($9 million) for the
three-month period ending June 30,
2021, compared to a net loss of $6
million ($5 million) for the
corresponding period in 2020. As shown in the above table, the net
loss attributable to shareholders of Boralex was $13 million ($14
million) or $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 project
commissionings, as well as the recognition of a loss on disposal of
a non-strategic asset and accelerated amortization for sites
undergoing repowering.
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 to 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 project
commissionings.
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 project commissionings, 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 2925 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, 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 3.1 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, go to 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.
Non-IFRS measures
EBITDA(A) represents earnings before interest, taxes and
depreciation, adjusted to exclude other items such as acquisition
costs, net loss on financial instruments and foreign exchange loss
(gain). EBITDA(A) is a non-IFRS measure and does not have a
standardized meaning under IFRS; accordingly, it may not be
comparable to similarly named measures used by other companies.
Discretionary cash flows are defined as net cash flows related
to operating activities before changes in "non-cash items related
to operating activities," less (i) distributions paid to
non–controlling interests (ii) additions to property, plant and
equipment (maintaining operations), and (iii) repayments on
non-current debt (projects); plus (iv) development costs (from the
statement of earnings (loss)). Discretionary cash flows are a
non-IFRS measure and do not have a standardized
meaning under IFRS; accordingly, they may not be comparable to
similarly named measures used by other companies.
For more information on EBITDA(A) and discretionary cash flows,
please refer to the "Non-IFRS measures" section of Boralex's 2020
annual report, available on Boralex's website (boralex.com) and on
SEDAR (sedar.com)
View original content to download
multimedia:https://www.prnewswire.com/news-releases/boralex-adds-180-mw-to-its-project-portfolio-and-posts-net-earnings-of-38-million-in-q2-2021-301350084.html
SOURCE Boralex Inc.