Boralex reports significant jump in energy sales in 2020

For the fiscal year ended Dec. 31, 2020, Boralex Inc. posted energy sales of $619 million ($738 million), an increase of 10% (7%) over FY2019, and EBITDA(A) of $434 million ($513 million), an increase of 8% (4%) over 2019.

The figures in parentheses reflect the combined EBITDA(A), versus those calculated according to the International Financial Reporting Standards (IFRS).

The Company’s FY2020 EBITDA(A) was $137 million ($155 million), a level comparable to 2019 excluding a gain on the sale of land in Scotland and other unusual items recorded in the fourth quarter of 2019. For the fourth quarter of 2020, Boralex posted energy sales of $193 million ($225 million), up 8% (6%) over the fourth quarter of 2019.

“I’m very proud of our employees’ hard work during the unusual fiscal year in 2020. The 22% growth in our discretionary cash flows, the announcement of two major acquisitions and the addition of many projects to our Growth Path are perfectly aligned with our strategic plan and financial objectives for 2023,” said Boralex’s President and Chief Executive Officer Patrick Decostre. “The fiscal year 2020 also marks the beginning of a major project that will highlight our social responsibility business practices and approach to improving these practices.”

The social responsibility (CSR) and ESG criteria sections were added to the company’s strategic plan during the third quarter of FY2020. A report is available on Boralex’s website.

Regarding the corporation’s outlook, Decostre added: “We continue to be very active in pursuing development and growth opportunities in our target markets, particularly in North America. We’re also seeing encouraging signs of a resumption of wind energy development in Québec following a 30-year electricity sale contract signed for the Apuiat project, which has an installed capacity of 200 MW, to be developed in collaboration with Innu communities in Québec. The Hydro-Québec Electricity Supply Plan published in October 2020 forecasting to take steps within the next year to acquire new energy supplies, as well as the Québec Government Plan for a Green Economy, released shortly after, are positive elements for the wind energy development on Québec’s territory.”

“Over the next two quarters, we’ll work to update our strategic plan to take into account greater opportunities arising from the energy transition’s acceleration following the publication of stimulus plans by various governments around the world. This review will feature an update of our 2023 financial objectives, given our strong performance over the past two years,” said Decostre.

In Q4 2020, Boralex generated 1,468 GWh (1,763 GWh) of power, an increase of 8% (5%) compared to 1,364 GWh (1,677 GWh) in the same quarter in 2019. The increase stems from more favorable conditions for Canada’s wind and hydroelectric sectors, as well as the acquisition of the CDPQ’s equity interests in three wind farms in Québec. Canadian wind power generation was 34% (16%) higher than in the fourth quarter of 2019 and 27% (14%) higher than anticipated. Wind power production in France was comparable to the production in the fourth quarter of 2019, but 6% higher than anticipated production.

For the three-month period ended Dec. 31, 2020, revenues from energy sales totaled $193 million ($225 million), up $14 million ($13 million) or 8% (6%) compared to the same quarter in 2019. This increase stems from higher production from Canadian activities, as previously mentioned.

For the fourth quarter of 2020, the company recorded a consolidated EBITDA(A) of $137 million ($155 million), down $6 million ($10 million) or 4% (6%) from the same quarter in 2019. This decrease stems from a gain recorded in 2019 following the sale of land in Scotland, the increase in maintenance costs due to production well above expected levels in recent quarters, as well as an increase in compensation linked to a higher stock market price.

Overall, for the three-month period ended Dec. 31, 2020, Boralex recorded earnings of $30 million ($36 million) versus a net loss of $23 million ($15 million) for the same period in 2019. This results in net earnings for Boralex’s shareholders of $25 million ($31 million) or $0.24 ($0.30) per share (base and diluted), compared to a net loss for Boralex’s shareholders of $26 million ($18 million) or 0.28 ($0.19) per share (diluted) for the same period in 2019.

Boralex says the increase in revenue generated from energy sales is due to both the expansion of the company’s operational base, including the resumption of production at the Buckingham hydroelectric power station in Québec, and increased wind farm production due to more favorable wind conditions than last year.

In October 2019, Boralex announced it had doubled installed capacity at Buckingham, increasing it from 10 MW to 20 MW. Located in Québec’s Outaouais region, the power station was built in 1913 and initially upgraded by Boralex in 1994. The facility’s first 25-year power purchase agreement with Hydro-Québec ran from 1994 to 2019 and has been renewed to 2038.

Boralex develops, builds and operates renewable energy power facilities in Canada, France, the United Kingdom and the U.S. The corporation generates power from four technologies — wind, hydroelectric, thermal and solar.

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