Baltic Power, Hai Long and Oneida projects continue to make construction progress
TORONTO, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Northland Power Inc. ("Northland” or the "Company”) (TSX: NPI) reported today financial results for the three and nine months ended September 30, 2024. All dollar amounts set out herein are in thousands of Canadian dollars, unless otherwise stated.
"Northland's third quarter results were negatively impacted by the Gemini cable outage and lower offshore wind production but on a full year basis Northland continues to remain on track to achieve our full year guidance, given the strong performance in the first half of the year,” said John Brace, Northland's Interim President and CEO. "We continue to make progress on our three construction projects in Taiwan, Poland and Canada. Following the regrettable safety incident in August, construction of the Hai Long onshore substation is progressing according to its recovery plans. We also have a number of exciting development opportunities in core markets across our development pipeline.”
Third Quarter Highlights
Financial results for the three months ended September 30, 2024 were lower compared to the same quarter of 2023, primarily due to lower production at offshore wind facilities and lower revenue from the Spanish portfolio. This decrease was partially offset by the contribution from the New York onshore wind projects that achieved commercial operations in October 2023 and higher revenue from EBSA due to growth in asset base and rate escalations.
Financial Results
- Sales decreased to $491 million from $513 million in 2023.
- Gross Profit decreased to $444 million from $458 million in 2023.
- Net Loss was $191 million compared to net income of $43 million in 2023.
- Adjusted EBITDA (a non-IFRS measure) decreased to $228 million from $267 million in 2023.
- Adjusted Free Cash Flow per share (a non-IFRS measure) decreased to $0.08 from $0.25 in 2023.
- Free Cash Flow per share (a non-IFRS measure) decreased to $0.00 from $0.14 in 2023.
| Summary of Consolidated Results | ||||||||||||||||
| (in thousands of dollars, except per share amounts) | Three months ended September 30, | Nine months ended September 30,
| ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| FINANCIALS | ||||||||||||||||
| Sales | $ | 490,503 | $ | 513,290 | $ | 1,774,397 | $ | 1,606,558 | ||||||||
| Gross profit | 444,489 | 458,316 | 1,625,319 | 1,454,687 | ||||||||||||
| Operating income | 98,127 | 146,188 | 596,321 | 521,355 | ||||||||||||
| Net income (loss) | (190,733 | ) | 42,987 | 220,920 | 171,786 | |||||||||||
| Net income (loss) attributable to shareholders | (178,162 | ) | 36,166 | 143,531 | 110,401 | |||||||||||
| Adjusted EBITDA (a non-IFRS measure) (2) | 227,756 | 267,258 | 949,812 | 851,212 | ||||||||||||
| Cash provided by operating activities | 195,923 | 148,005 | 669,337 | 649,345 | ||||||||||||
| Adjusted Free Cash Flow (a non-IFRS measure) (2) | 19,447 | 63,917 | 313,771 | 306,690 | ||||||||||||
| Free Cash Flow (a non-IFRS measure) (2) | 1,189 | 36,316 | 269,984 | 232,297 | ||||||||||||
| Cash dividends paid | 50,210 | 52,137 | 151,204 | 153,332 | ||||||||||||
| Total dividends declared (1) | $ | 77,422 | $ | 76,036 | $ | 231,182 | $ | 227,101 | ||||||||
| Per Share | ||||||||||||||||
| Weighted average number of shares - basic and diluted (000s) | 257,873 | 253,279 | 256,673 | 252,152 | ||||||||||||
| Net income (loss) attributable to common shareholders - basic and diluted | $ | (0.70 | ) | $ | 0.14 | $ | 0.54 | $ | 0.42 | |||||||
| Adjusted Free Cash Flow - basic (a non-IFRS measure) (2) | $ | 0.08 | $ | 0.25 | $ | 1.22 | $ | 1.22 | ||||||||
| Free Cash Flow - basic (a non-IFRS measure) (2) | $ | 0.00 | $ | 0.14 | $ | 1.05 | $ | 0.92 | ||||||||
| Total dividends declared | $ | 0.30 | $ | 0.30 | $ | 0.90 | $ | 0.90 | ||||||||
| ENERGY VOLUMES | ||||||||||||||||
| Electricity production in gigawatt hours (GWh) | 2,196 | 2,172 | 8,210 | 7,027 | ||||||||||||
| (1) Represents total dividends paid to common shareholders, including dividends in cash or in shares under Northland's dividend reinvestment plan. | ||||||||||||||||
| (2) See Forward-Looking Statements and Non-IFRS Financial Measures below. | ||||||||||||||||
Third Quarter Results Summary
Offshore wind facilities
Electricity production for the three months ended September 30, 2024 decreased by 10% or 81GWh compared to the same quarter of 2023. This was primarily due to export cable damage at Gemini, and higher unpaid curtailments related to negative prices and grid outages, partially offset by higher wind resource at German offshore wind facilities.
Sales of $213 million for the three months ended September 30, 2024 decreased 8% or $18 million, compared to the same quarter of 2023, primarily due to the lower production by $26 million, partially offset by a $7 million P&I factor adjustment and various other items.
Adjusted EBITDA of $108 million for the three months ended September 30, 2024 decreased 15% or $19 million compared to the same quarter of 2023, due to the same factors as noted above.
An important indicator for performance of offshore wind facilities is the current and historical average power production of the facility. The following table summarizes actual electricity production and the historical average, high and low, for the quarter of each offshore facility:
| Three months ended September 30, | 2024 (1) | 2023 (1) | Historical Average (2) | Historical High (2) | Historical
Low (2) | ||||
| Electricity production (GWh) | |||||||||
| Gemini | 377 | 467 | 440 | 524 | 377 | ||||
| Nordsee One | 190 | 176 | 190 | 220 | 173 | ||||
| Deutsche Bucht | 166 | 172 | 171 | 185 | 163 | ||||
| Total (2) | 733 | 815 | |||||||
| (1) Includes GWh produced and attributed to paid curtailments. | |||||||||
| (2) Represents the historical power production since the commencement of commercial operation of the respective facility (2017 for Gemini and Nordsee One and 2020 for Deutsche Bucht) and excludes unpaid curtailments. | |||||||||
Onshore renewable facilities
Electricity production was 20% or 86GWh higher than the same quarter of 2023, primarily due to the contribution from the New York onshore wind projects that achieved commercial operations in October 2023, and higher wind resource at the Canadian and Spanish onshore renewable facilities, partially offset by lower solar resource at the Spanish onshore renewable facilities.
Sales of $116 million were 1% or $2 million lower than the same quarter of 2023, primarily due to lower revenue from the Spanish facilities and Canadian onshore facilities, partially offset by the contribution from the New York onshore wind projects. Please refer to the MD&A for a further breakdown of Spanish portfolio revenue by component.
Adjusted EBITDA of $82 million was 8% or $7 million lower than the same quarter of 2023, primarily due to operating cost from New York onshore wind projects, in addition to the same factors as above.
Natural gas facilities
Electricity production of 944GWh for the three months ended September 30, 2024 was largely in line with the same quarter of 2023.
Sales of $74 million for the three months ended September 30, 2024 decreased 8% or $6 million as compared to the same quarter of 2023, primarily due to lower natural gas prices resulting in lower energy rates.
Adjusted EBITDA of $40 million for the three months ended September 30, 2024 was largely in line with the same quarter of 2023.
Utility
Sales of $85 million for the three months ended September 30, 2024 increased 9% or $7 million compared to the same quarter of 2023, primarily due to the growth in asset base and rate escalations.
Adjusted EBITDA of $35 million for the three months ended September 30, 2024 increased 18% or $5 million compared to the same quarter of 2023, primarily due to the same factors as above.
Consolidated statement of income (loss)
General and administrative ("G&A”) costs of $30 million in the third quarter increased $8 million compared to the same quarter of 2023, primarily due to increased personnel costs relating to one-time management changes and restructuring of operating and corporate functions.
Development costs of $18 million decreased $16 million compared to the same quarter of 2023, primarily due to focused spending on development activities and timing of the expenditures.
Finance costs of $108 million increased 22% or $20 million compared to the same quarter of 2023, primarily due to the contribution from New York onshore wind projects, partially offset by scheduled repayments on facility-level loans.
Fair value loss on financial instruments was $100 million, primarily due to net movement in the fair value of derivatives related to interest rate and foreign exchange contracts.
Foreign exchange gain of $9 million in the third quarter was primarily due to unrealized gain from fluctuations in the closing foreign exchange rates.
Other income was $19 million lower than the same quarter of 2023, primarily due to gains associated with the partial sell-down of development assets in 2023.
Net loss of $191 million in the third quarter of 2024 compared to net income of $43 million in the same quarter of 2023, was primarily as a result of the factors described above.
Adjusted EBITDA
The following table reconciles net income (loss) to Adjusted EBITDA:
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
| ||||||||||||