LONGUEUIL, QC, March 27, 2020 /CNW Telbec/ - Innergex Renewable
Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") provides
an update on where we stand as a corporation regarding
COVID-19.
Innergex has implemented numerous measures aimed at ensuring the
well-being of its employees, suppliers and business partners. It is
important to note that the Corporation's renewable energy
production facilities continue to operate across all of our
production sites in Canada,
the United States, France and Chile.
We have directed all office employees to work from home to
minimize contact and comply with the directives of public health
authorities in the different jurisdictions where we operate.
Additionally, the operations' teams working on-site at any one time
have been reduced to perform essential work only and extra hygiene
measures have been implemented to prevent the spread of pathogens
among employees while maintaining electricity production, an
essential service for the population. Measures have also been put
in place to monitor and restrict access by visitors to various
workplaces and production sites.
Innergex believes it has the financial strength to face the
difficult economic realities that lie ahead.
- At this time, our operations are considered an essential
service by the government entities where we operate.
- Following the $661 million
Private Placement with Hydro-Quebec at the beginning of February, the
Corporation was able to deleverage its balance sheet.
- Innergex has access to a $700
million on its revolving credit facilities (drawn amount of
$25 million) and to $35 million of cash on hand at the corporate
level. We have access to several cash reserves at the project level
as well.
- Innergex has no near-term debt maturities (before 2023).
- Over 95% of our revenues are contracted with government-owned
or -backed utilities with high credit ratings and large investment
grade rated corporations. Less than 5% of our revenues are subject
to merchant price.
- Innergex uses hedge instruments to minimize the risks of
currency fluctuations in Europe.
Revenues generated in Chile are
denominated in US dollars.
- Hydro-Quebec's strong
shareholding position in our Corporation along with the Strategic
Alliance now in place, provides Innergex with funds to pursue its
growth and advance strategic investments.
In terms of construction activities, we continue to advance work
on the Hillcrest solar project in Ohio (200 MW) as approved by the relevant
governmental authorities. The continuation of our activities is
dependent on the availability of equipment and subject to further
restrictions that could arise as the fight against the pandemic
continues. We have no supply problems to date, but the situation
could change. A delay in the commissioning of the project is
therefore a possibility.
As for the Innavik hydro project in northern Quebec (7.5 MW), site is ready for
construction. For the moment, the Kativik Regional Government has
limited access to the territory of Nunavik until further notice,
which may result in some delays before we can start construction
planned for the beginning of May. Innergex is in constant
communication with the authorities to find solutions.
Innergex maintains its disciplined growth approach and is making
progress with the two previously announced potential operating
project acquisitions in Chile and
the United States. The Corporation
currently expects to execute definitive acquisition agreements,
although there is no certainty as to the timing thereof.
"Our 3Ps philosophy takes on its full meaning as we not only
maintain green energy production for the Planet, we also focus
our efforts on People, aiming to improve the health, safety and
resilience of our employees, their families and our communities. I
would like to thank our employees for their dedication to ensuring
continuity of our operations," said Michel
Letellier, President and Chief Executive Officer of
Innergex. "We are also continuing our involvement in the
communities surrounding our facilities by supporting organizations
that can make a difference for community members in these difficult
times. Innergex is in an enviable position to deploy capital, seize
opportunities and create value for its shareholders."
About Innergex Renewable Energy Inc.
For 30
years now, Innergex believes in a world where abundant renewable
energy promotes healthier communities and creates shared
prosperity. As an independent renewable power producer which
develops, acquires, owns and operates hydroelectric facilities,
wind farms and solar farms, 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 68 operating facilities with an aggregate net installed capacity
of 2,588 MW (gross 3,488 MW), including 37 hydroelectric
facilities, 26 wind farms and five solar farms. Innergex also holds
interests in seven projects under development, two of which are
under construction, with a net installed capacity of 296 MW (gross
378 MW), and prospective projects at different stages of
development with an aggregate gross capacity totaling 7,115 MW. Its
approach to building shareholder value is to generate sustainable
cash flows, provide an attractive risk-adjusted return on invested
capital and to distribute a stable dividend.
Forward-Looking Information Disclaimer
To inform
readers of the Corporation's future prospects, this press release
contains forward-looking information within the meaning of
applicable securities laws, including, but not limited to,
Innergex's business strategy, use of proceeds of the Private
Placement,; future development and growth prospects (including
expected growth opportunities under the Strategic Alliance),
development, financing and construction progress of the 200 MW
Hillcrest solar photovoltaic project located in Brown County, Ohio and of the Innvik 7.5 MW
hydro project located in northern Quebec, and other statements that are not
historical facts ("Forward-Looking Information"). Forward-Looking
Information can generally be identified by the use of words such as
"approximately", "may", "will", "could", "believes", "expects",
"intends", "should", "plans", "potential", "project",
"anticipates", "estimates", "scheduled" or "forecasts", or other
comparable terminology that state that certain events will or will
not occur. It represents the estimates, projections and
expectations of the Corporation relating to future events, results
or developments 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, such as expected production, projected revenues and projected
Free Cash Flow, to inform readers of the potential financial impact
of expected results, of the expected commissioning of the
Corporation's development projects, of the potential financial
impact of pending, completed and future acquisitions and of the
Corporation's ability to sustain current dividends and to fund its
growth. Such information may not be appropriate for other
purposes.
Since forward-looking statements address future events and
conditions, they are by their very nature subject to inherent risks
and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks.
These include, but are not limited to, the risks associated with
the renewable energy industry in general such as execution of
strategy; ability to develop projects on time and within budget;
capital resources; derivative financial instruments; qualification
for PTCs and ITCs; current economic and financial conditions;
hydrology and wind regimes, solar irradiation; construction, design
and development of new facilities; performance of existing
projects; equipment failure; interest rate and refinancing risk;
currency exchange rates, variation in merchant price of
electricity, financial leverage and restrictive covenants; and
relationships with public utilities. Readers are cautioned that the
foregoing list of factors is not exhaustive. Additional information
on these and other factors that could affect the operations or
financial results of Innergex are included in Innergex's annual
information form available on SEDAR at www.sedar.com.
Forward-Looking Information in this press release is based on
certain key expectations and assumptions made by the Corporation.
The following table outlines Forward-Looking Information contained
in this press release, the principal assumptions used to derive
this information and the principal risks and uncertainties that
could cause actual results to differ materially from this
information.
Principal Assumptions
|
Principal Risks and
Uncertainties
|
Estimated project
costs, expected obtainment of permits, start of construction,
work conducted and start of
commercial operation for Development Projects or
Prospective Projects For each Development Project and Prospective Project,
the Corporation may provide (where available) an estimate of
potential installed capacity, estimated project costs, project
financing terms and each project's development and construction
schedule, based on its extensive experience as a developer, in
addition to information directly related to incremental internal
costs, site acquisition costs and financing costs, which are
eventually adjusted for the projected costs and construction
schedule provided by the engineering, procurement and construction
("EPC") contractor retained for the project. The Corporation provides indications based on
assumptions regarding its current strategic positioning and
competitive outlook, as well as scheduling and construction
progress, for its Development Projects and its Prospective
Projects, which the Corporation evaluates based on its experience
as a developer.
|
Uncertainties
surrounding development of new facilities
Performance of major
counterparties, such as suppliers or contractors
Delays and cost
overruns in the design and construction of projects
Ability to secure
appropriate land
Obtainment of
permits
Health, safety and
environmental risks
Ability to secure new
PPAs or renew any PPA
Higher-than-expected
inflation
Equipment
supply
Interest rate
fluctuations and financing risk
Risks related to U.S.
PTCs and ITCs, changes in U.S. corporate tax rates and availability
of tax equity financing
Regulatory and
political risks
Natural disaster and
force majeure
Relationships with
stakeholders
Foreign market growth
and development risks
Outcome of insurance
claims
Social acceptance of
renewable energy projects
Ability of the
Corporation to execute its strategy of building shareholder
value
Failure to realize
the anticipated benefits of completed and future
acquisitions
Changes in
governmental support to increase electricity to be generated from
renewable sources by independent power producers
|
Completion of
pending acquisition transactions The Corporation expects to use a portion of the
proceeds of the Private Placement to fund certain pending
acquisitions.
|
Signing of definitive
agreements
Satisfaction of
closing conditions
Regulatory and
political risks
Third party consents
and regulatory approvals
|
Although the Corporation believes that the expectations and
assumptions on which Forward-Looking Information is based are
reasonable, readers of this press release are cautioned not to rely
unduly on this Forward-Looking Information since no assurance can
be given that they will prove to be correct. The Corporation does
not undertake any obligation to update or revise any Forward
Looking Information, whether as a result of events or circumstances
occurring after the date of this press release, unless so required
by legislation.
www.innergex.com
SOURCE Innergex Renewable Energy Inc.