Boralex loses $40-million in Q3
Boralex Inc. lost $40-million on revenue of $79-million in the third quarter of 2018. This compares with a loss of $26-million on revenue of $74-million in Q3 of 2017.
FOR THE first nine months of 2018, Boralex Inc. had EBITDA(A) (earnings before interest, taxes, depreciation and amortization, adjusted to include other items) of $200-million ($233-million), up 9 per cent (8 per cent) from $183-million ($215-million) for the comparative period of 2017. EBITDA(A) for the three-month period ended Sept. 30, 2018, was comparable with that of the corresponding quarter of 2017, that is, $39-million ($51-million in 2018 and $50-million in 2017). The contribution of facilities acquired and commissioned over the past 12 months as well as the sound performance of Canadian wind farms offset the impact of less favourable wind conditions for French wind farms and Canadian and U.S. hydroelectric power stations and a rise in development costs.
“The entire Boralex team is hard at work to ensure continuity on the path to growth while integrating the most recent acquisitions and maximiz ing syn ergie s in the day-to-day management of operations,” stated Patrick Lemaire, president and chief executive officer of Boralex.
“We remain focused on our strategy, which will allow us to generate substantial economies of scale in the future. Recently, we successfully completed the acquisition of Invenergy’s interests in five wind farms in Canada as well as the Kallista sites in France. In addition to these acquisitions, which added nearly 25 per cent to our installed capacity since the beginning of the year, we recently commissioned, on schedule, the 33-megawatt Inter Deux Bos wind farm in France. We also intend to commission six new facilities in Canada and France for a total of 97 MW by the end of the year. We’re very proud of these achievements which will undoubtedly improve our positioning as a leading operator in both Canada and France.”
Boralex generated revenues from energy sales of $79-million ($93-million) in the third quarter of 2018, up 6 per cent (9 per cent) compared with the same period in 2017. EBITDA(A) for the quarter totalled $39-million ($51-million), which is identical to the result of $39-million ($50-million) for the same quarter of 2017.
The corporation reported a net loss attributable to shareholders amounting to $34-million ($34-million) or 43 cents (43 cents) per share (basic and diluted) for the third quarter of 2018, compared with a net loss attributable to shareholders of $17-million ($17-million) or 23 cents (23 cents) per share (basic and diluted) for the same period a year earlier.
The increase in net loss between the two periods resulted primarily from a lower production volume at existing facilities plus the increases of $16-million in amortization expense, $1-million in acquisition costs and $3-million in financing costs.
Following the recent acquisitions and the commissioning of Inter Deux Bos wind farm, the corporation has substantially expanded its operating base. The installed capacity under Boralex’s control has now reached 1,853 MW, up 397 MW or 27 per cent since the beginning of the year. Taking into account the facilities to be commissioned by 2020 as set out in the growth path for a total of 214 MW, Boralex should achieve an installed capacity of nearly 2,065 MW at the end of 2020, excluding any other opportunities that could arise.
To continue on the growth path, Boralex has in particular a portfolio of potential
projects representing over 1,000 MW in Europe alone. The corporation will actively participate in the tendering system, which anticipates the awarding of contracts of a cumulative installed capacity of onshore wind power totalling 3,000 MW by June, 2020, of which 2,400 MW is yet to be awarded, and which will benefit from 20-year contracts.
In light of all the above, management maintains its annualized EBITDA(A) target of $390-million to $410-million under IFRS ($480-million to $500-million on a combined basis) at the end of 2020.
We seek Safe Harbor.
Erika Flores condensed this news release (firstname.lastname@example.org).
Germain Benoit, Alain Ducharme, Marie Giguere, Edward James Kernaghan, Patrick Lemaire, Richard Lemaire, Yves Rheault, Alain Rheaume, Michelle Samson-Doel, Pierre Seccareccia, Dany St-Pierre
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