Boralex Inc. (“Boralex” or the “Company”) (TSX: BLX) is pleased to
report significantly higher first quarter results for 2024.
“Boralex has once again demonstrated its ability
to deliver strong results quarter after quarter, as illustrated by
a 17% increase in our EBITDA(A) and a 62% increase in our net
earnings for the first three months of the year. This growth can
mainly be attributed to higher wind farm production in North
America, the contribution of new facilities commissioned and our
strategy to optimize electricity selling prices in France,” said
Patrick Decostre, President and Chief Executive Officer of
Boralex.
“In the coming quarters, we will continue to
pursue growth in our various target markets, where there are ample
opportunities. Our teams are busy preparing responses to upcoming
tender calls in Quebec, Ontario, New York State, the United Kingdom
and France. This considerable diversity will allow us to pace our
growth and focus on the most profitable markets,” Mr. Decostre
added.
1 EBITDA(A) is a total of segment measures. For
more details, see the Non-IFRS and other financial measures section
of this press release.2 “Combined”, “discretionary cash flows” and
“available cash resources and authorized financing facilities” are
non-GAAP financial measures and do not have a standardized
definition under IFRS. Therefore, these measures may not be
comparable to similar measures used by other companies. For more
details, see the Non- IFRS financial measures and other financial
measures section of this press release.3 Figures in brackets
indicate results on a Combined basis as opposed to a Consolidated
basis.
1st quarter
highlights
Three-month periods
ended March
31
|
Consolidated |
Combined
1 |
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|
(in millions of Canadians dollars, unless otherwise specified)
(unaudited) |
|
|
|
|
$ |
|
% |
|
|
|
|
|
$ |
|
% |
|
Power production (GWh)2 |
1,767 |
|
1,696 |
|
71 |
|
4 |
|
2,355 |
|
2,286 |
|
69 |
|
3 |
|
Revenues from
energy sales andfeed-in premium |
259 |
|
298 |
|
(39 |
) |
(13 |
) |
291 |
|
328 |
|
(37 |
) |
(11 |
) |
Operating
income |
106 |
|
77 |
|
29 |
|
38 |
|
134 |
|
102 |
|
32 |
|
31 |
|
EBITDA(A)3 |
195 |
|
167 |
|
28 |
|
17 |
|
218 |
|
190 |
|
28 |
|
14 |
|
Net earnings
(loss) |
73 |
|
45 |
|
28 |
|
62 |
|
73 |
|
45 |
|
28 |
|
62 |
|
Net earnings
attributable to shareholders of Boralex |
55 |
|
33 |
|
22 |
|
69 |
|
55 |
|
33 |
|
22 |
|
69 |
|
Per share - basic and diluted |
0.53 |
$ |
0.31 |
$ |
0.22 |
$ |
68 |
|
0.53 |
$ |
0.31 |
$ |
0.22 |
$ |
68 |
|
Net cash flows
related to operating activities |
230 |
|
244 |
|
(14 |
) |
(6 |
) |
— |
|
— |
|
— |
|
— |
|
Cash flows
from operations1 |
157 |
|
141 |
|
16 |
|
12 |
|
— |
|
— |
|
— |
|
— |
|
Discretionary cash flows1 |
78 |
|
66 |
|
12 |
|
16 |
|
— |
|
— |
|
— |
|
— |
|
In the first quarter of 2024, Boralex produced
1,767 GWh (2,355 GWh) of electricity, 4% (3%) more than the 1,696
GWh (2,286 GWh) produced in the same quarter of 2023. The increase
was mainly attributable to commissionings in France and strong wind
farm performance. Boralex ended the quarter with total production
in line with anticipated production4.
Revenues from energy sales and feed-in premiums
for the three-month period ended March 31, 2024, amounted to $259
million ($291 million), 13% (11% on a combined basis) lower than in
the first quarter of 2023. The decrease was mainly attributable to
lower selling prices in France. EBITDA(A)3 amounted to $195 million
($218 million), up 17% (14%) compared to the first quarter of 2023.
Operating income totalled $106 million ($134 million), compared to
$77 million ($102 million) for the same quarter of 2023. The
strength of the quarterly results is primarily a reflection of
higher production in North America, commissionings, and our
strategy to optimize electricity selling prices in France. Net
earnings amounted to $73 million, up $28 million from $45 million
in the first quarter in 2023.
Outlook
Boralex’s 2025 Strategic Plan is built around
the same four strategic directions as the plan launched in 2019 –
growth, diversification, customers and optimization – and six
corporate targets. The details of the plan, which also sets out
Boralex’s corporate social responsibility strategy, are found in
the Corporation’s annual report. Highlights of the main
achievements of the quarter ended on March 31, 2024 in relation to
the 2025 Strategic Plan can be found in the 2024 Interim Report 1,
which is available in the Investors section of the Boralex
website.
In the coming quarters, Boralex will continue to
work on its various initiatives under the strategic plan, including
project development, analysis of acquisition targets and
optimization of power sales and operating costs.
Finally, to fuel its organic growth, the
Corporation has a pipeline of projects at various stages of
development defined on the basis of clearly identified criteria,
totaling 6.7 GW of wind, solar and energy storage projects.
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 June 17, 2024, to shareholders of
record at the close of business on May 31, 2024. 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.
1 “Combined”, “Cash flows from operations” and
“Discretionary cash flows” are non-GAAP financial measures and do
not have a standardized definition under IFRS. Therefore, these
measures may not be comparable to similar measures used by other
companies. For more details, see the Non-IFRS financial measures
and other financial measures section of this press release.2 Power
production includes the production for which Boralex received
financial compensation following power generation limitations
imposed by its customers 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 EBITDA(A) is a total of sector
measures. For more details, see the Non-IFRS financial measures and
other financial measures section of this press release.4
Anticipated production is an additional financial measure, For more
details see the Non-IFRS financial measures and other financial
measures section of this press release.
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. Over
the past five years, our installed capacity has more than doubled
to over 3 GW. We are developing a portfolio of projects in
development and construction of close to 6.7 GW in wind, solar and
storage projects, guided by our values and our corporate social
responsibility (CSR) approach. 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.sedarplus.ca. Follow us on Facebook, LinkedIn and Twitter.
Non-IFRS measures
Performance measures
In order to assess the performance of its assets
and reporting segments, Boralex uses performance measures.
Management believes that these measures are widely accepted
financial indicators used by investors to assess the operational
performance of a company and its ability to generate cash through
operations. The non-IFRS and other financial measures also provide
investors with insight into the Corporation’s decision making as
the Corporation uses these non-IFRS financial measures to make
financial, strategic and operating decisions. The non-IFRS and
other financial measures should not be considered as substitutes
for IFRS measures.
These non-IFRS financial measures are derived
primarily from the audited consolidated financial statements, but
do not have a standardized meaning under IFRS; accordingly, they
may not be comparable to similarly named measures used by other
companies. Non-IFRS and other financial measures are not audited.
They have important limitations as analytical tools and investors
are cautioned not to consider them in isolation or place undue
reliance on ratios or percentages calculated using these non-IFRS
financial measures.
Non-IFRS financial
measures |
Specific financial
measure |
Use |
Composition |
Most directly comparable IFRS
measure |
Financial data - Combined (all disclosed financial data) |
To assess the operating performance and the ability of a company to
generate cash from its operations.The Interests represent
significant investments by Boralex. |
Results from the combination of the financial information of
Boralex Inc. under IFRS and the share of the financial information
of the Interests.Interests in the Joint Ventures and associates,
Share in earnings (losses) of the Joint Ventures and associates and
Distributions received from the Joint Ventures and associates are
then replaced with Boralex’s respective share in the financial
statements of the Interests (revenues, expenses, assets,
liabilities, etc.) |
Respective financial data - Consolidated |
Discretionary cash flows |
To assess the cash generated from operations and the amount
available for future development or to be paid as dividends to
common shareholders while preserving the long-term value of the
business. |
Net cash flows related to operating activities before "change in
non-cash items related to operating activities,” less(i)
distributions paid to non-controlling shareholders, (ii) additions
to property, plant and equipment (maintenance of operations), (iii)
repayments on non-current debt (projects) and repayments to tax
equity investors; (iv) principal payments related to lease
liabilities; (v) adjustments for non- operational items; plus (vi)
development costs (from the statement of earnings). |
Net cash flows related to operating activities |
|
Corporate objectives for 2025 from the strategic plan. |
|
|
Cash flows from operations |
To assess the cash generated by the Company's operations and its
ability to finance its expansion from these funds. |
Net cash flows related to operating activities before changes in
non-cash items related to operating activities. |
Net cash flows related to operating activities |
Non-IFRS financial
measures |
Specific financial
measure |
Use |
Composition |
Most directly comparable IFRS
measure |
Available cash and cash equivalents |
To assess the cash and cash equivalents available, as at balance
sheet date, to fund the Corporation's growth. |
Represents cash and cash equivalents, as stated on the balance
sheet, from which known short-term cash requirements are
excluded. |
Cash and cash equivalents |
Available cash resources and authorized financing |
To assess the total cash resources available, as at balance sheet
date, to fund the Corporation's growth. |
Results from the combination of credit facilities available to fund
growth and the available cash and cash equivalents. |
Cash and cash equivalents |
Other financial
measures - Total
of segments
measure |
Specific financial
measure |
Most directly
comparable IFRS
measure |
EBITDA(A) |
Operating income |
Other financial
measures -
Supplementary Financial
Measures |
Specific financial
measure |
Composition |
Credit facilities available for growth |
The credit facilities available for growth include the unused
tranche of the parent company's credit facility, apart from the
accordion clause, as well as the unused tranche credit facilities
of subsidiaries which includes the unused tranche of the credit
facility- France and the unused tranche of the construction
facility. |
Anticipated production |
For older sites, anticipated production by the Corporation is based
on adjusted historical averages, planned commissioning and
shutdowns and, for all other sites, on the production studies
carried out. |
Combined
The following tables reconcile Consolidated financial data with
data presented on a Combined basis:
|
|
|
2024 |
|
|
2023 |
(in millions of Canadian dollars) (unaudited) |
Consolidated |
Reconciliation(1) |
Combined |
Consolidated |
Reconciliation(1) |
Combined |
Three-month periods
ended March
31: |
|
|
|
|
|
|
Power production (GWh)(2) |
1,767 |
588 |
2,355 |
1,696 |
590 |
2,286 |
Revenues from energy sales and
feed-in |
|
|
|
|
|
|
premium |
259 |
32 |
291 |
298 |
30 |
328 |
Operating income |
106 |
28 |
134 |
77 |
25 |
102 |
EBITDA(A) |
195 |
23 |
218 |
167 |
23 |
190 |
Net earnings |
73 |
— |
73 |
45 |
— |
45 |
|
As at March
31, 2024 |
As at December
31, 2023 |
Total assets |
6,741 |
841 |
7,582 |
6,574 |
730 |
7,304 |
Debt - Principal balance |
3,328 |
525 |
3,853 |
3,327 |
437 |
3,764 |
(1) Includes the respective contribution of
joint ventures and associates as a percentage of Boralex's interest
less adjustments to reverse recognition of these interests under
IFRS. This contribution is attributable to the North America
segment's wind farms and includes corporate expenses of $1 million
under EBITDA(A) for the period ended March 31, 2024 ($1 million as
at March 31, 2023).(2) Includes financial compensation following
electricity production limitations imposed by customers.
EBITDA(A)
EBITDA(A) is a total of segment financial
measures and represents earnings before interest, taxes,
depreciation and amortization, adjusted to exclude other items such
as acquisition and integration costs, other loss (gains), net loss
(gain) on financial instruments and foreign exchange loss (gain),
with the last two items included under Other.
EBITDA(A) is used to assess the performance of the Corporation's
reporting segments.
EBITDA(A) is reconciled to the most comparable IFRS measure,
namely, operating income, in the following table:
|
|
|
|
|
2024 |
|
|
|
|
|
2023 |
|
Change 2024 vs
2023 |
(in millions of Canadian dollars) (unaudited) |
Consolidated |
|
Reconciliation(1) |
|
Combined |
|
Consolidated |
|
Reconciliation(1) |
|
Combined |
|
Consolidated |
|
Combined |
Three-month periods
ended March
31: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(A) |
195 |
|
23 |
|
218 |
|
167 |
|
23 |
|
190 |
|
28 |
|
28 |
Amortization |
(73 |
) |
(15 |
) |
(88 |
) |
(73 |
) |
(15 |
) |
(88 |
) |
— |
|
— |
Other gains |
4 |
|
— |
|
4 |
|
— |
|
— |
|
— |
|
4 |
|
4 |
Share in earnings of joint
ventures and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
associates |
(19 |
) |
19 |
|
— |
|
(15 |
) |
15 |
|
— |
|
(4 |
) |
— |
Change in fair value of a
derivative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
included in the share in earnings of a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
joint venture |
(1 |
) |
1 |
|
— |
|
(2 |
) |
2 |
|
— |
|
1 |
|
— |
Operating income |
106 |
|
28 |
|
134 |
|
77 |
|
25 |
|
102 |
|
29 |
|
32 |
(1) Includes the respective contribution of
joint ventures and associates as a percentage of Boralex's interest
less adjustments to reverse recognition of these interests under
IFRS.
Cash flow
from operations
and discretionary
cash flows
The Corporation computes the cash flow from operations and
discretionary cash flows as follows:
|
Consolidated |
|
Three-month periods ended |
Twelve-month periods ended |
|
March 31, |
March 31, |
December 31, |
(in millions of Canadian dollars) (unaudited) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net cash flows
related to
operating activities |
230 |
|
244 |
|
482 |
|
496 |
|
Change in non-cash items relating to operating activities |
(73 |
) |
(103 |
) |
(21 |
) |
(51 |
) |
Cash flows from
operations |
157 |
|
141 |
|
461 |
|
445 |
|
Repayments on non-current debt
(projects)(1) |
(65 |
) |
(65 |
) |
(232 |
) |
(232 |
) |
Adjustment for non-operating items(2) |
— |
|
— |
|
6 |
|
6 |
|
|
92 |
|
76 |
|
235 |
|
219 |
|
Principal payments related to
lease liabilities(3) |
(6 |
) |
(6 |
) |
(17 |
) |
(17 |
) |
Distributions paid to
non-controlling shareholders(4) |
(18 |
) |
(13 |
) |
(62 |
) |
(57 |
) |
Additions to property, plant and
equipment |
|
|
|
|
(maintenance of operations)(5) |
(2 |
) |
(3 |
) |
(5 |
) |
(6 |
) |
Development costs (from statement of earnings) |
12 |
|
12 |
|
45 |
|
45 |
|
Discretionary cash
flows |
78 |
|
66 |
|
196 |
|
184 |
|
(1) Includes repayments on non-current debt (projects) and
repayments to tax equity investors, and excludes VAT bridge
financing, early debt repayments and repayments under the
construction facility - Boralex Energy Investments portfolio and
the CDPQ Fixed Income Inc. term loan.(2) For the twelve-month
periods ended March 31, 2024 and December 31, 2023, favourable
adjustment consisting mainly of acquisition, integration and
transaction costs.(3) Excluding the principal payments
related to lease liabilities for projects under development and
construction.
(4) Comprises distributions paid to
non-controlling shareholders as well as the portion of
discretionary cash flows attributable to the non-controlling
shareholder of Boralex Europe Sàrl.(5) During the quarter, the
Corporation reclassified the employee benefits related to its
incentive plans, which were reported in full under Operating
expenses in the consolidated statements of earnings. To better
allocate these expenses to the Corporation's various functions and
thus provide more relevant information to users of the financial
statements, the Corporation is now allocating these costs to
Operating, Administrative and Development expenses in the
consolidated statements of earnings according to the breakdown of
staff. This change resulted in a $1 million increase in development
costs for the three-month period ended March 31, 2023 and a $5
million increase for the year ended December 31, 2023.
Available cash
and cash
equivalents and
available cash
resources and authorized
financing
The Corporation defines available cash and cash equivalents as
well as available cash resources and authorized financing as
follows:
|
Consolidated |
|
|
As at March 31 |
|
As at December 31 |
|
(in millions of Canadian dollars) (unaudited) |
2024 |
|
2023 |
|
Cash and cash equivalents |
641 |
|
478 |
|
Cash and cash equivalents held by
entities subject to project debt agreements(1) |
(534 |
) |
(388 |
) |
Bank overdraft |
(14 |
) |
(6 |
) |
Available cash
and cash
equivalents |
93 |
|
84 |
|
Credit facilities available for growth |
482 |
|
463 |
|
Available cash
resources and
authorized financing |
575 |
|
547 |
|
(1) This cash can be used for the operations of the respective
projects, but is subject to restrictions for non-project related
purposes under the credit agreements.
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 Corporation's strategic plan, business model and
growth strategy, organic growth and growth through mergers and
acquisitions, obtaining an investment grade credit rating, payment
of a quarterly dividend, the Corporation’s financial targets, the
projects commissioning dates, the portfolio of renewable energy
projects, the Corporation’s Growth Path, the bids for new storage
and solar projects 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 Corporation’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 Corporation
considers these factors and assumptions to be reasonable, based on
the information currently available to the Corporation, 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 Corporation’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 risk of not renewing
PPAs or being unable to sign new corporate PPA, the risk of not
being able to capture the US or Canadian investment tax credit,
counterparty risk, the Corporation’s financing capacity,
cybersecurity risks, competition, changes in general market
conditions, industry regulations and amendments thereto,
particularly the legislation, regulations and emergency measures
that could be implemented for time to time to address high energy
prices in Europe, litigation and other regulatory issues related to
projects in operation or under development, as well as certain
other factors considered in the sections dealing with risk factors
and uncertainties appearing in Boralex's MD&A for the fiscal
year ended December 31, 2023.
Unless otherwise specified by the Corporation,
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 Corporation’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.
For more
information:
MEDIA |
INVESTOR RELATIONS |
Camille Laventure |
Stéphane Milot |
Advisor, Public Affairs and External Communications |
Vice President, Investor Relations |
Boralex Inc. |
Boralex Inc. |
438-883-8580 |
514-213-1045 |
camille.laventure@boralex.com |
stephane.milot@boralex.com |
Source: Boralex Inc.
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