- Further diversifies Innergex's existing portfolio of assets in
terms of technology and geography.
- Adds high quality operating assets which are fully contracted
at an attractive fixed power purchase agreement price for an
average remaining term of almost nine years.
- The Portfolio's cash flows from operating activities and Free
Cash Flow1 has averaged an annual $23.0 million and $7.5
million respectively over a historical four-year
period.
LONGUEUIL, QC, March 9,
2023 /CNW/ - Innergex Renewable Energy Inc.
(TSX: INE) ("Innergex" or the "Corporation") is pleased to announce
the successful completion of the previously reported acquisition of
the 60 MW Sault Ste. Marie solar portfolio (the "Portfolio")
located in northwestern Ontario
for a purchase price of $50.2 million, along with the assumption of
$169.5 million of existing
debt.
"The acquisition of Sault Ste
Marie supports our strategy to increase geographic and
technological diversification, while benefiting from reliable,
quality cash flows through its attractive contracted profile," said
Michel Letellier, President and
Chief Executive Officer of Innergex. "We are also pleased to enter
this part of Ontario where heavy
industries are looking to decarbonize, which could bring additional
opportunities for Innergex in the long term."
The Sault Ste. Marie 1, 2, and
3 facilities ("SSM1", "SSM2", "SSM3", respectively) reached full
commissioning between 2010 and 2011 and have achieved an excellent
operating track record since then, with a historical 5-year
weighted-average availability of 98.5%. All three facilities are
fully contracted under long-term power purchase agreements with the
Independent Electricity System Operator (Aa3 rating by Moody's),
with an average remaining contract life of close to
nine years.
The assets are expected to generate annual revenues of
approximately $33.1 million in 2023,
while operating, general and administrative expenses are expected
to reach approximately $3.1 million
during the same period. Over a historical four-year period, cash
flows from operating activities of the Portfolio have reached an
average of $23.0 million on an annual
basis, while Free Cash Flow2 has averaged
$7.5 million for the same
period. Innergex expects the Portfolio to be immediately accretive
based on these historical averages.
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 87
operating facilities with an aggregate net installed capacity of
3,694 MW (gross 4,244 MW) and an energy storage capacity of 159
MWh, including 40 hydroelectric facilities, 35 wind
facilities, 11 solar facilities and 1 battery energy storage
facility. Innergex also holds interests in 11 projects under
development with a net installed capacity of 696 MW (gross 733 MW)
and an energy storage capacity of 605 MWh, 5 of which are under
construction, as well as prospective projects at different stages
of development with an aggregate gross installed capacity totaling
8,701 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 project acquisitions, accretion expected
to result from such acquisitions, business strategy, business
integration, 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 estimated targeted
revenues, the estimated project operating, general and
administrative expenses 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 and of the
Corporation's ability to sustain current dividends and to fund its
growth. Such information may not be appropriate for other
purposes.
Forward-Looking Information is based on certain key assumptions
made by the Corporation, including, without restriction, those
concerning hydrology, wind regimes and solar irradiation;
performance of operating facilities, acquisitions and commissioned
projects; project performance; availability of capital resources
and timely performance by third parties of contractual obligations;
favourable market conditions for share issuance to support growth
financing; favourable economic and financial market conditions; the
Corporation's success in developing and constructing new
facilities; successful renewal of PPAs; sufficient human resources
to deliver service and execute the capital plan; no significant
event occurring outside the ordinary course of business such as a
natural disaster, pandemic or other calamity; continued maintenance
of information technology infrastructure and no material breach of
cybersecurity. Please refer to Section 5 - OUTLOOK | Strategic Plan
2020-2025 of the 2022 Annual Report regarding the assumptions used
with respect to the 2025 growth targets.
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-
and twelve-month periods ended December 31,
2022.
Cautionary Statement Regarding Non-IFRS measures
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. Free Cash Flow is not a measure recognized by IFRS and has
no standardized meaning prescribed by IFRS. Please refer to the
"Non-IFRS Measures" section of the Management's Discussion and
Analysis for the three- and twelve-month periods ended December 31, 2022 for more information.
____________________________
|
1 This
measure is not a recognized measure under IFRS and therefore may
not be comparable to the one presented by other issuers. Please
refer to the "Non-IFRS Measures" section of the three- and
twelve-month periods ended December 31, 2022 MD&A for more
information.
|
2 This
measure is not a recognized measure under IFRS and therefore may
not be comparable to the one presented by other issuers. Please
refer to the "Non-IFRS Measures" section of the three- and
twelve-month periods ended December 31, 2022 MD&A for more
information.
|
SOURCE Innergex Renewable Energy Inc.