Boralex reports its best quarterly performance ever Production, revenues from energy sales and EBITDA(A) reach historical highs
Boralex Inc. reported its best quarterly performance ever with power production, revenues from energy sales and EBITDA(A) reaching historical highs. As a result, the Corporation generated net earnings attributable to shareholders of $20.6 million or $0.32 per share (basic). Besides the contribution of the eight new sites commissioned in 2015, quarterly results were driven by better wind conditions in France and in Ontario, improved water flow conditions at hydroelectric power stations in the United States and the strengthening of the euro and the U.S. dollar. “Beyond these excellent results, we will continue to develop our pipeline and execute our projects rigorously. We’re also proud of the faith demonstrated by the financial community in Boralex and its outlook. The enhanced financial flexibility stemming from the recent refinancing arrangements will also help achieve the objective of growing our current installed capacity to 1,650 MW, a growth of more than 50% by the end of 2020,” commented Patrick Lemaire, President and Chief Executive Officer of Boralex at the release of the financial results.
Boralex also announced two new wind power projects in Canada, namely Port Ryerse in Ontario and Moose Lake in British Columbia. Construction on the 10 MW Port Ryerse project with a 20- year contract with IESO will begin during the second quarter of 2016. Its construction will require investments of approximately $38 million and Boralex estimates its annual EBITDA(A) at about $3.5 million. Commissioning is slated for the fourth quarter of 2016. Construction on the 15 MW Moose Lake project with a 40-year contract with BC Hydro will begin during the third quarter of2016. Its construction will require investments of approximately $70 million and Boralex estimates its annual EBITDA(A) at about $5.0 million. Commissioning is slated for the end of 2017.
For the quarter ended March 31, 2016, the Corporation recorded a 46% increase in revenues from energy sales to $106.0 million (or 34% to $122.4 million on a proportionate consolidation basis), with EBITDA(A) growing by 55% to $80.0 million (or by 45% to 90.4 million on a proportionate consolidation basis) and the EBITDA(A) margin increasing to 75% from 71% in 2015 (or to 74% from 68% on a proportionate consolidation basis). Boralex’s cash flows from operations amounted to $59.6 million ($69.9 million on a proportionate consolidation basis), compared with $40.2 million ($42.8 million on a proportionate consolidation basis) for the three-month period ended March 31, 2015. Lastly, net earnings attributable to shareholders of Boralex stood at $20.6 million ($0.32 per share (basic)) compared with $5.3 million ($0.11 per share (basic)) in 2015. The net earnings are the same under proportionate consolidation. In light of the steady growth in its results since the introduction of a dividend in early 2014 as well as its confidence regarding the future, in February 2016, the Board of Directors of Boralex authorized a 7.7% increase in the annual dividend to $0.56 per share. Accordingly, a dividend of $0.14 per share will be paid on June 15, 2016 to shareholders of record at the close of business on May 31, 2016.
Boralex also completed during the second quarter two large transactions that will significantly increase its financial flexibility. First, Boralex and its partners refinanced, under advantageous conditions, the Seigneurie de Beaupré Wind Farms 2 and 3, paving the way for the payment of a special distribution in the amount of $40 million to each of its partners during the second quarter of 2016. Second, Boralex renegotiated the refinancing of the $175 million revolving credit facility maturing in June 2018 by replacing it with a new agreement with an initial term of four years (April 2020) in the total amount of $360 million and including a $60 million letter of credit facility guaranteed by Export Development Canada (EDC).