*
A Supplemental Information
section was added to the 2021 First Quarter Report in order to
normalize key financial metrics due to the February 2021 Texas
Events.
* The
information contained within this press release is presented on a
normalized basis.
|
- Unprecedented weather conditions in Texas negatively impacted financial results in
the first quarter of 2021.
- Revenues Proportionate, on a normalized basis, up 1% to
$166.5 million in Q1 2021 compared
with Q1 2020.
- Adjusted EBITDA Proportionate, on a normalized basis, down 2%
to $113.6 million in Q1 2021 compared
with Q1 2020.
- Construction activities at the Hillcrest solar project and
Griffin Trail wind project are progressing well.
- The recently announced carbon reduction initiatives creates
opportunities for future renewable energy projects.
|
All amounts are in
thousands of Canadian dollars, unless otherwise indicated and are
for continuing operations unless otherwise
indicated.
|
LONGUEUIL, QC, May 11,
2021 /CNW Telbec/ - Innergex Renewable Energy Inc. (TSX: INE)
("Innergex" or the "Corporation") today released its operating and
financial results for the first quarter ended March
31, 2021.
"Following the February 2021 Texas
Events, we are pleased to report that there were no injuries to our
crews. Despite the financial hardships sustained by some of our
facilities in that region, we are grateful to have already started
a transition away from power hedges, exampled by the Foard City and Griffin Trail power sale
structures, and to have continued our diversification of assets
across technologies and geographic segments, including adding
facilities in the United States
outside of Texas to avoid any such
potential future events that could have a significant impact on our
consolidated results," said Michel
Letellier, President and Chief Executive Officer of
Innergex. "In the last quarter, we continued to advance
construction and development activities with both the Hillcrest
solar project and Griffin Trail wind project achieving significant
milestones towards full commissioning. To continue growing our
increasingly diversifying portfolio, we are pursuing development
activities with a pipeline of strong prospective projects. Given
the new momentum created by recently announced carbon reduction
political commitments, the market outlook is very positive for new
renewable energy facilities. Innergex will contribute to these
commitments while keeping ESG criteria at the centre of its
actions, as illustrated in our 2020 Sustainability Report published
today."
FINANCIAL HIGHLIGHTS
|
Three months ended
March 31
|
|
2021
|
Impacts from
the February
2021 Texas
Events (9 days)
|
2021
Normalized3
|
2020
|
Change
|
Production
(MWh)
|
1,785,947
|
|
—
|
|
1,785,947
|
|
1,679,598
|
|
6
|
%
|
Long-Term Average
(MWh) ("LTA")
|
1,946,893
|
|
—
|
|
1,946,893
|
|
1,804,235
|
|
8
|
%
|
Revenues
|
189,651
|
|
(54,967)
|
|
134,684
|
|
132,116
|
|
2
|
%
|
Adjusted
EBITDA1
|
143,119
|
|
(54,967)
|
|
88,152
|
|
90,419
|
|
(3)
|
%
|
Adjusted EBITDA
Margin1
|
75.5
|
%
|
(10.0)
|
%
|
65.5
|
%
|
68.4
|
%
|
|
Net Loss
|
(217,872)
|
|
64,219
|
|
(153,653)
|
|
(46,931)
|
|
227
|
%
|
Adjusted Net
Loss
|
(27,540)
|
|
—
|
|
(27,540)
|
|
(9,503)
|
|
190
|
%
|
Net Loss Attributable
to Owners, $ per share - basic and diluted
|
(1.24)
|
|
0.37
|
|
(0.87)
|
|
(0.35)
|
|
|
Production
Proportionate (MWh)1
|
2,049,621
|
|
—
|
|
2,049,621
|
|
1,969,766
|
|
4
|
%
|
Revenues
Proportionate1
|
261,735
|
|
(95,273)
|
|
166,462
|
|
164,371
|
|
1
|
%
|
Adjusted EBITDA
Proportionate1
|
208,891
|
|
(95,273)
|
|
113,618
|
|
116,014
|
|
(2)
|
%
|
Adjusted EBITDA
Proportionate Margin1
|
79.8
|
%
|
(11.5)
|
%
|
68.3
|
%
|
70.6
|
%
|
|
|
|
|
|
|
|
|
Trailing twelve
months ended March 31
|
|
|
2021
|
Impacts from
the February
2021 Texas
Events (9 days)
|
2021
Normalized3
|
2020
|
Change
|
Cash Flow from
Operating Activities
|
276,045
|
|
(16,801)
|
|
259,244
|
|
206,480
|
|
26
|
%
|
Free Cash
Flow1
|
73,762
|
|
15,789
|
|
89,551
|
|
91,447
|
|
(2)
|
%
|
Payout
Ratio1,2
|
170
|
%
|
(30)
|
%
|
140
|
%
|
113
|
%
|
|
|
|
1.
|
Adjusted EBITDA,
Adjusted EBITDA Margin, Production Proportionate, Revenues
Proportionate, Adjusted EBITDA Proportionate, Adjusted EBITDA
Proportionate Margin, Free Cash Flow and Payout Ratio are not
recognized measures under IFRS and therefore may not be comparable
to those presented by other issuers. Please refer to the "Non-IFRS
Measures" section for more information.
|
2.
|
For the trailing
twelve months ended March 31, 2021, the Free Cash Flow and Payout
Ratio are normalized to exclude the impacts of the February 2021
Texas Events. Please refer to the "February 2021 Texas Events"
section of the 2021 First Quarter Report for more
information.
|
3.
|
For the three months
ended March 31, 2021, the operating results are normalized to
exclude the impacts of the February 2021 Texas Events. Please refer
to the "February 2021 Texas Events" section of the 2021 First
Quarter Report for more information.
|
OPERATING PERFORMANCE
For the quarter ended March
31, 2021, Production Proportionate was 92% of the LTA
and up 4% over the same quarter last year. Revenues
Proportionate, on a normalized basis, increased 1% compared to
the same quarter last year. The increase is attributable to the
Mountain Air and Salvador Acquisitions, higher production at the
Quebec hydro facilities and the
Foard City facility, partly offset
by lower revenues at the wind facilities in France, lower production from the hydro
facilities in British Columbia and
lower average selling price at the Phoebe solar facility.
Adjusted EBITDA, on a normalized basis, was down 3% compared
to last year at $88.2 million and the
Adjusted EBITDA Proportionate, on a normalized basis,
decreased by 2% at $113.6
million.
In the first quarter of 2021, the hydroelectric power
generation segment generated $16.0
million in Adjusted EBITDA Proportionate, representing a 10%
decrease from the $17.9 million
generated in the same period last year, mainly due to a lower
contribution from the facilities in British Columbia mostly attributable to lower
revenues derived from lower production and lower average selling
prices. This decrease is partly offset by higher revenues from
higher production over higher operational expenses at the
Quebec facilities. Revenues
Proportionate for the segment were down 6% at $30.9 million. Production Proportionate was
up 2%.
For the three-month period ended March 31, 2021, the
wind power generation segment posted $106.5 million in Adjusted EBITDA Proportionate,
on a normalized basis, representing a 2% increase over the
$104.8 million generated in the same
period last year. This increase is mainly attributable to the
Mountain Air Acquisition in Idaho
completed on July 15, 2020, and to a
higher contribution from the Foard
City facility due to a combined effect of higher revenues from
higher production and lower operational expenses, when excluding
the impact of the February 2021 Texas
Events. These items were partly offset by a lower contribution from
the wind facilities in France due
to lower wind regimes. Revenues Proportionate for the segment, on a
normalized basis, increased by 3% to $126.1
million. Production Proportionate was up 1%.
The solar power generation segment generated $6.2 million in Adjusted EBITDA Proportionate, on
a normalized basis, in the quarter, representing a 3% increase from
the $6.0 million posted in the same
period last year due mainly to the contribution of the Salvador
Acquisition in Chile on
May 14, 2020, partly offset by a
lower contribution from the Phoebe solar facility attributable to a
net unfavourable impact of lower revenues from lower average
selling prices over lower operational expenses when excluding the
impact of the February 2021 Texas
Events. Revenues Proportionate, on a normalized basis, for the
segment increased by 5% to $9.4
million. Production Proportionate was up 40%.
For more information
on the financial impacts of the February 2021 Texas Events, please
refer to the Corporation's 2021 First Quarter Report available on
Innergex's website at www.innergex.com.
|
FREE CASH FLOW AND PAYOUT RATIO
The following table
summarizes the Free Cash Flow and Payout Ratio normalized to
exclude the impacts of the February
2021 Texas Events, for the trailing twelve months ended
March 31, 2021.
|
Trailing twelve
months ended March 31
|
|
|
Free Cash Flow and
Payout Ratio calculation1
|
2021
|
February 2021
Texas Events
(9 days)
|
2021
Normalized
|
2020
|
Free Cash
Flow2
|
73,762
|
|
15,789
|
|
89,551
|
|
91,447
|
|
|
|
|
|
|
Dividends declared on
common shares
|
125,649
|
|
—
|
|
125,649
|
|
103,025
|
|
Payout
Ratio2
|
170
|
%
|
(30)
|
%
|
140
|
%
|
113
|
%
|
|
|
1.
|
Free Cash Flow and
Payout Ratio are not recognized measures under IFRS and therefore
may not be comparable to those presented by other issuers. Please
refer to the "Non-IFRS Measures" section for more
information.
|
2.
|
For the trailing
twelve months ended March 31, 2021, the Free Cash Flow and Payout
Ratio are normalized to exclude the impacts of the February 2021
Texas Events. Please refer to the "February 2021 Texas Events"
section of the 2021 First Quarter Report for more
information.
|
For the trailing twelve months ended March 31, 2021, the
dividends on common shares declared by the Corporation amounted to
170% of Free Cash Flow. Excluding the impacts from the February 2021 Texas Events, the dividends on
common shares declared by the Corporation amounted to 140% of
Normalized Free Cash Flow, compared with 113% for the corresponding
period last year.
UPDATE ON DEVELOPMENT
(As at May 11, 2021)
On March 1, 2021, the 6.9 MW Yonne
II wind farm located in France
reached its full commissioning.
The Hillcrest solar project (Ohio) is approximately 95% complete. Tracker
and module installation are nearly completed. Commissioning work
started in December 2020. Full
commercial operation is scheduled for Q2 2021.
Construction activities at the Griffin Trail wind project
(Texas) are progressing well on
site with completion of turbine deliveries, collection line
installation, turbine foundations and O&M building
construction. Significant progress on turbine installation was also
achieved. Mechanical completion and pre-commissioning of the
turbines are ongoing. Commercial operation is scheduled for Q3
2021.
Residential bi-energy conversion Request for Proposal for the
Innavik hydro project (Quebec) was released and results are expected
soon. Bridge to give access to south shore was repaired and its
installation is now completed. Transmission line design is
completed. Commercial operation is scheduled in 2022.
Projects under development are progressing well. The
Engineering, Procurement and Construction ("EPC") contractors were
selected and Limited Notice to Proceed are in progress for both
Peahu and Hale Kuawehi solar and battery storage projects.
Environmental studies are ongoing as well as other
permitting-related activities at both Barbers Point and Kahana solar and
battery storage projects in Hawaii. In France, the building permit was obtained in
February for Tonnerre standalone battery storage project
and a supply, construction and maintenance agreement has been
signed with the selected battery supplier, EVLO, a Hydro-Québec
subsidiary.
DIVIDEND DECLARATION
The following dividends will be
paid by the Corporation on July 15, 2021:
Date of
announcement
|
Record
date
|
Payment
date
|
Dividend per
common share
|
Dividend per Series
A
Preferred
Share
|
Dividend per Series
C
Preferred Share
|
May 11,
2021
|
June 30,
2021
|
July 15,
2021
|
$0.180
|
$0.202750
|
$0.359375
|
ADDITIONAL INFORMATION
Innergex's 2021 first quarter
unaudited condensed interim consolidated financial statements, the
notes thereto and the Management's Discussion and Analysis can be
obtained on SEDAR at www.sedar.com and in the "Investors" section
of the Corporation's website at www.innergex.com.
2020 SUSTAINABILITY REPORT
The Corporation issued
today its 2020 Sustainability Report. You can visit
sustainability.innergex.com for more information.
CONFERENCE CALL AND WEBCAST
The Corporation will hold
a conference call and webcast on Wednesday,
May 12, 2021 at 10 AM (EDT).
Investors and financial analysts are invited to access the
conference by dialing 1 888 231-8191 or 647 427-7450
or via https://bit.ly/2PUCHLu or the Corporation's website at
www.innergex.com. Journalists as well as the public may access this
conference call via a listen mode only. A replay of the conference
call will be available after the event on the Corporation's
website.
About Innergex Renewable Energy Inc.
For over
30 years, Innergex has believed 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, solar farms and energy storage facilities, 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 76
operating facilities with an aggregate net installed capacity of
2,747 MW (gross 3,701 MW) and an energy storage capacity of
150 MWh, including 37 hydroelectric facilities, 33 wind farms and
six solar farms. Innergex also holds interests in 9 projects under
development, three of which are under construction, with a net
installed capacity of 551 MW (gross 623 MW) and an energy storage
capacity of 329 MWh, as well as prospective projects at different
stages of development with an aggregate gross capacity totaling
6,935 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.
Cautionary Statement Regarding Forward-Looking
Information
To inform readers of the Corporation's future
prospects, this press release contains forward-looking information
within the meaning of applicable securities laws ("Forward-Looking
Information"), including the Corporation's projected financial
performance, power production, prospective projects, successful
development, construction and financing (including tax equity
funding) of the projects under construction and the advanced-stage
prospective projects, sources and impact of funding, project
acquisitions, execution of non-recourse project-level financing
(including the timing and amount thereof), and strategic,
operational and financial benefits and accretion expected to result
from such acquisitions, business strategy, future development and
growth prospects (including expected growth opportunities under the
Strategic Alliance with Hydro-Québec), business integration,
governance, business outlook, objectives, plans and strategic
priorities, and other statements that are not historical facts.
Forward-Looking Information can generally be identified by the use
of words such as "approximately", "may", "will", "could",
"believes", "expects", "intends", "should", "would", "plans",
"potential", "project", "anticipates", "estimates", "scheduled" or
"forecasts", or other comparable terms that state that certain
events will or will not occur. It represents the projections and
expectations of the Corporation relating to future events or
results 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, including information regarding the Corporation's expected
production, the estimated project costs, projected revenues,
projected Revenues Proportionate, projected Adjusted EBITDA and
projected Adjusted EBITDA Proportionate, Projected Free Cash Flow,
Projected Free Cash Flow per Share and intention to pay dividend
quarterly, the estimated project size, costs and schedule,
including obtainment of permits, start of construction, work
conducted and start of commercial operation for Development
Projects and Prospective Projects, the Corporation's intent to
submit projects under Requests for Proposals, the qualification of
U.S. projects for PTCs and ITCs and other statements that are not
historical facts. Such information is intended to inform readers of
the potential financial impact of expected results, of the expected
commissioning of Development Projects, of the potential financial
impact of completed and future acquisitions, of the Corporation's
ability to sustain current dividends and to fund its growth and of
the possible outcomes of the proceedings initiated in Texas with regard to the Flat Top and Shannon
facilities. Such information may not be appropriate for other
purposes.
Forward-looking Information is based on certain key assumptions
made by Innergex, including, without restrictions, assumptions
concerning project performance, economic, financial and
financial market conditions, expectations and assumptions
concerning availability of capital resources and timely performance
by third-parties of contractual obligations, receipt of regulatory
approvals and the divestiture of select assets. Although Innergex
believes that the expectations and assumptions on which such
forward-looking information is based are reasonable, under the
current circumstances, readers are cautioned not to rely unduly on
this forward-looking information as no assurance can be given that
they will prove to be correct. The forward-looking information
contained in this press release is made as of the date hereof and
Innergex 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 hereof, unless so required
by law.
For more information on the risks and uncertainties that may
cause actual results or performance to be materially different from
those expressed, implied or presented by the forward-looking
information or on the principal assumptions used to derive this
information, please refer to the "Forward-Looking Information"
section of the Management's Discussion and Analysis for the
three-month period ended March 31, 2021.
Cautionary Statement Regarding Non-IFRS measures
The
unaudited condensed interim consolidated financial statements
for the three-month period ended March 31, 2021, have been
prepared in accordance with International Financial Reporting
Standards ("IFRS"). However, some measures referred to in this
press release are not recognized measures under IFRS and therefore
may not be comparable to those presented by other issuers. Innergex
believes that these indicators are important, as they provide
management and the reader with additional information about the
Corporation's production and cash generation capabilities, its
ability to sustain current dividends and dividend increases and its
ability to fund its growth. These indicators also facilitate the
comparison of results over different periods. Innergex's share of
Revenues of joint ventures and associates, Revenues Proportionate,
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA
Proportionate, Adjusted EBITDA Proportionate Margin, Innergex's
share of Adjusted EBITDA of joint ventures and associates, Adjusted
Net Loss, Free Cash Flow, Adjusted Free Cash Flow, Payout Ratio and
Adjusted Payout Ratio are not measures recognized by IFRS and have
no standardized meaning prescribed by IFRS. Please refer to the
"Non-IFRS Measures" section of the Management's Discussion and
Analysis for the three-month period ended March 31, 2021.
SOURCE Innergex Renewable Energy Inc.