Actions Enable Self-Funding to Accelerate
Long-Term Growth
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All amounts are in
Canadian dollars, unless otherwise indicated.
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LONGUEUIL, QC, Feb. 21,
2024 /CNW/ - Innergex Renewable Energy Inc.
(TSX: INE) ("Innergex" or the "Corporation"), a leading global
independent renewable power producer, today announced that its
Board of Directors has approved an update to its capital allocation
strategy, specifically as it pertains to its dividend to support
its long-term growth objectives. The change will be applicable to
the next dividend payment on April 15,
2024, to shareholders of record on March 28, 2024.
The updated capital allocation strategy, which recalibrates the
dividend and introduces a new payout ratio target range, will
prioritize a self-funded model, increase financial flexibility and
allow for additional growth investments in greenfield projects. The
global renewable energy sector, particularly in the Corporation's
core markets, is offering an unprecedented number of opportunities
driven by growing energy demand and decarbonization trends.
Innergex's significant competitive advantages, including its track
record of community partnerships, will allow the Corporation to
execute on its balanced growth strategy. This strategy consists of
maintaining a sustainable pace of accretive development, focusing
on core markets and optimizing returns on operating assets.
With its new dividend payout ratio target range of 30% to 50% of
Free Cash Flow1 and its revised annual dividend for 2024
of $0.36 per common share, Innergex
expects to free up approximately $75
million annually to support its growth ambitions.
Michel Letellier, President and
Chief Executive Officer, commented, "Our well-developed
capabilities in hydro, wind, solar, and battery energy storage
technologies, combined with our long-term experience efficiently
operating renewable energy assets, will enable us to continue to
achieve organic growth in our markets. We are extremely proud of
our global diversified portfolio of high-quality assets which
underpins our long-term cash flow profile and supports our balance
sheet. Looking ahead, Innergex is excited about the accelerating
path of decarbonization and to capitalize on these rapidly
expanding opportunities. It is imperative for Innergex to ensure
that its capital allocation priorities are strategically aligned
with its ambitions to generate sustainable long-term returns for
its shareholders. At this time and with an eye to the future, we
have proactively decided to pivot our strategy toward accelerated
growth by unlocking capital to support greenfield development
opportunities. Innergex has a robust development portfolio of over
10 GW and will remain disciplined in directing the additional
capital toward projects that meet our risk-adjusted return
criteria."
Key Highlights
- Calibrating Innergex's target dividend payout ratio to 30% to
50% of Free Cash Flow1 to support its long-term
growth objectives
- Based on the annual dividend for 2024 of $0.36 per common share, the Corporation expects
to free up approximately $75 million
annually for reinvestment purposes
- Increasing investments in greenfield development and
prioritizing organic growth in Innergex's four markets, with
specific focus on North
America
- Capital allocation choices designed to enable self-funding of
organic investments while delivering sustainable growth
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1 This is
not a recognized measure under IFRS and therefore may not be
comparable to those presented by other issuers. Please refer to the
"Non-IFRS Measures" section for more information.
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CONFERENCE CALL AND WEBCAST
Innergex President and Chief Executive Officer Michel Letellier and Chief Financial Officer
Jean Trudel will provide additional
details of the Corporation's capital allocation strategy as part of
the previously scheduled fourth quarter and fiscal year 2023
earnings conference call and webcast on Thursday, February 22, 2024, at 9 AM (EST). Investors and financial analysts are
invited to access the conference by dialing 1 888 390-0605 or
416 764-8609 or via bit.ly/48yJ76Q or the
Corporation's website at www.innergex.com. Journalists, as
well as the public, can access this conference call via a listen
mode only. A replay of the conference call will be available after
the event on the Corporation's website.
About Innergex Renewable Energy Inc.
For over 30 years, Innergex has believed in a world where
abundant renewable energy promotes healthier communities and
creates shared prosperity, which led to Innergex being recognized
as Canada's best corporate citizen
in 2023 by Corporate Knights. As an independent renewable power
producer which develops, acquires, owns, and operates hydroelectric
facilities, wind farms, solar farms, and energy storage facilities,
Innergex is convinced that generating power from renewable sources
will lead the way to a better world. Innergex conducts operations
in Canada, the United States, France and Chile and manages a large portfolio of
high-quality assets currently consisting of interests in 87
operating facilities with an aggregate net installed capacity of
3,600 MW (gross 4,234 MW) and an energy storage capacity of
409MWh, including 41 hydroelectric facilities, 35 wind facilities,
9 solar facilities and 2 battery energy storage facilities.
Innergex also holds interests in 10 projects under development with
a net installed capacity of 728 MW (gross 826 MW) and an
energy storage capacity of 295 MWh, 4 of which are under
construction, as well as prospective projects at different stages
of development with an aggregate gross installed capacity totaling
10,071 MW. Its approach to building shareholder value is to
generate sustainable cash flows and provide an attractive
risk-adjusted return on invested capital.
To learn more, visit innergex.com or connect with us on
LinkedIn.
NON-IFRS MEASURES
Some measures referred to in this press release are not
recognized measures under IFRS and therefore may not be comparable
to those presented by other issuers. The Corporation believes these
indicators are important, as they provide management and the reader
with additional information about the Corporation's production and
cash generation capabilities, its ability to pay dividend and its
ability to fund its growth. These indicators also facilitate the
comparison of results over different periods. Free Cash Flow is not
a measure recognized by IFRS and has no standardized meaning
prescribed by IFRS. Please refer to the section entitled "Non-IFRS
Measures" of the 2023 Annual Report for more information.
Cautionary Statement Regarding Forward-Looking
Information
To inform readers of the Corporation's future prospects, this
press release contains forward-looking information within the
meaning of applicable securities laws ("Forward-Looking
Information"), including the Corporation's growth targets, power
production, prospective projects, market growth, successful
development, construction and financing (including tax equity
funding) of the projects under construction and the advanced-stage
prospective projects, sources and impact of funding and capital
allocation, project acquisitions, execution of non-recourse
project-level financing (including the timing and amount thereof),
and strategic, operational and financial benefits and accretion
expected to result from such acquisitions, business strategy,
future development and growth prospects (including expected growth
opportunities under the Strategic Alliance with Hydro-Québec),
business integration, governance, business outlook, objectives,
plans and strategic priorities, and other statements that are not
historical facts. Forward-Looking Information can generally be
identified by the use of words such as "approximately", "may",
"will", "could", "believes", "expects", "intends", "should",
"would", "plans", "potential", "project", "anticipates",
"estimates", "scheduled" or "forecasts", or other comparable terms
that state that certain events will or will not occur. It
represents the projections and expectations of the Corporation
relating to future events or results as of the date of this press
release.
Forward-Looking Information includes future-oriented financial
information or financial outlook within the meaning of securities
laws, including information regarding the Corporation's targeted
production, the estimated targeted revenues and production tax
credits, targeted Revenues and Production Tax Credits
Proportionate, targeted Adjusted EBITDA and targeted Adjusted
EBITDA Proportionate, targeted Free Cash Flow, targeted Free Cash
Flow per Share and intention to pay dividend quarterly, the
estimated project size, costs and schedule, including obtainment of
permits, start of construction, work conducted and start of
commercial operation for Development Projects and Prospective
Projects, the Corporation's intent to submit projects under
Requests for Proposals, the qualification of U.S. projects for PTCs
and ITCs and other statements that are not historical facts. Such
information is intended to inform readers of the potential
financial impact of expected results, of the expected commissioning
of Development Projects, of the potential financial impact of
completed and future acquisitions and of the Corporation's ability
to pay a dividend and to fund its growth. Such information may not
be appropriate for other purposes.
Forward-Looking Information is based on certain key assumptions
made by the Corporation, including, without restriction, those
concerning hydrology, wind regimes and solar irradiation;
performance of operating facilities, acquisitions and commissioned
projects; availability of capital resources and timely performance
by third parties of contractual obligations; favourable economic
and financial market conditions; average merchant spot prices
consistent with external price curves and internal forecasts; no
material changes in the assumed U.S. dollar to Canadian dollar and
Euro to Canadian dollar exchange rate; no significant variability
in interest rates; the Corporation's success in developing and
constructing new facilities; successful renewal of PPAs; sufficient
human resources to deliver service and execute the capital plan; no
significant event occurring outside the ordinary course of business
such as a natural disaster, pandemic or other calamity; continued
maintenance of information technology infrastructure and no
material breach of cybersecurity. Please refer to the Section 5 -
OUTLOOK | 2024 Growth Targets of the 2023 Annual Report regarding
the assumptions used with respect to growth targets.
For more information on the risks and uncertainties that may
cause actual results or performance to be materially different from
those expressed, implied or presented by the forward-looking
information or on the principal assumptions used to derive this
information, please refer to the "Forward-Looking Information"
section of the Management's Discussion and Analysis for the year
ended December 31, 2023.
Innergex Renewable Energy Inc.
www.innergex.com
SOURCE Innergex Renewable Energy Inc.
