Boralex discloses its results for the second quarter of 2018

Boralex (TSX:BLX) announced its results for the second quarter of 2018 with the company reporting revenue from energy sales at $95 million.

The company develops, builds and operates renewable energy power facilities in Canada, France, United States and United Kingdom.

As quoted in the press release:

“The prevailing weather conditions did not allow us to achieve the expected operating results, but it’s important to note that the quarter provided an opportunity to significantly strengthen our position as an industry leader in our main markets,” said Patrick Lemaire, President and Chief Executive Officer of Boralex. “In addition to an immediate contribution to operating results, the Kallista¹ assets acquired and commissioned and the announced acquisition of the interests of Invenergy² in five wind farms across Canada will significantly increase our flexibility as a wind farm operator. Moreover, it will allow us to realize significant operational synergies over time, making it easier to forge new partnerships and negotiate favourable supply contracts.”

Mr. Lemaire also noted his great satisfaction with the successful completion of the public and private placements to finance the acquisition of Invenergy’s interests: “The success of these investments, including the exercise of the full over-allotment option, has once again confirmed the financial markets’ confidence in our business model and strategy. These investments, coupled with the conclusion in July of an additional joint investment of $100 million in the Corporation in the form of unsecured subordinated debt maturing in 2028 by the Caisse de dépôt et placement du Québec ($80 million) and the Fonds de solidarité FTQ ($20 million), provide us with a strengthened balance sheet that we can count on to continue on our growth path, while creating value for our shareholders.”

Three-month period ended June 30, 2018
For the second quarter of 2018, Boralex generated revenues from energy sales totalling $95 million ($110 million), up 3% (5%) from the same period of 2017. EBITDA(A) for the second quarter amounted to $57 million ($68 million), amounts similar to those reported in the same quarter of 2017.

Cash flows from operations stood at $21 million ($26 million) for the second quarter of 2018, compared with $44 million ($46 million) for the same period last year. The decline stemmed in particular from a $3 million decrease in distributions received from the Joint Ventures, a $9 million increase in interest paid and $7 million in acquisition costs.

Accordingly, the Corporation reported a net loss attributable to shareholders of $28 million or $0.36 per share (basic and diluted) for the second quarter of 2018, compared with a net loss attributable to shareholders of $2 million or $0.03 per share (basic and diluted) for the same period a year earlier.

The increase in net loss between the two periods was primarily due to lower than expected production volume at existing facilities, $7 million in extraordinary acquisition costs and $12 million in impairment losses on property, plant and equipment and intangible assets, related mainly to the Cham Longe I wind farm repowering and the cancellation of the power purchase agreement for the Otter Creek wind farm in Ontario.

Six-month period ended June 30, 2018
For the first six months of 2018, Boralex generated revenues from energy sales totalling $247 million ($278 million), up 17% (16%) from the same period of 2017. EBITDA(A) for the period was $161 million ($182 million), up 12% (10%) from $144 million ($165 million) in the first half of 2017.

Cash flows from operations amounted to $98 million ($111 million) for the first six months of 2018, compared with $102 million ($115 million) for the same period a year earlier. The decline was largely due to a $12 million increase in interest paid and $7 million in acquisition costs. These changes were partly offset by a $17 million increase in EBITDA(A).

For the first six months of 2018, the Corporation reported a net loss attributable to shareholders of $8 million or $0.10 per share (basic and diluted), compared with net earnings attributable to shareholders of $13 million or $0.18 per share (basic and diluted) for the same period a year earlier. Note that reporting on a Combined basis had no effect on the net earnings (loss).

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