Boralex Inc. (“Boralex” or the “Company”) (TSX: BLX) is pleased to
report a 9 % (7 % on a combined1 basis)2 increase in EBITDA(A)1 in
spite of a decrease in production (slight increase on a combined
basis) for the second quarter of 2024. For the six months period
ending June 30, 2024, the Company posted increases of 14 % (11 %)
in EBITDA(A), 23 % (21 %) in operating income and 41 % in net
earnings.
Highlights
Second quarter financial results
-
EBITDA(A) higher
than in Q2-2023,
operating income
and net earnings
down
- Production down
2% (up 1% on a combined basis) compared to Q2-2023. Total
production 11% (8%) below anticipated production1 for Q2 owing to
weather conditions and more extensive curtailments in France during
the quarter.
- EBITDA(A) of
$130 million ($152 million) in Q2-2024, up $11 million ($9 million)
from Q2-2023 owing to the positive impact of the strategy to
optimize electricity selling prices and the contribution of new
sites commissioned in France, as well as an increase in the
contribution from joint ventures.
- Operating income
of $35 million ($58 million) in Q2-2024, $3 million less ($1
million more) than in Q2-2023.
- Net earnings of
$17 million in Q2-2024, down $2 million from Q2-2023.
- Higher discretionary
cash flows1
and sustained
balance sheet
strength
- Discretionary cash flows of $17
million in Q2-2024, up $13 million from Q2-2023.
- $138 milion in net cash flows related to operating activities
in Q2-2024.
- $621 million in available cash resources and authorized
financing1 as at June 30, 2024, $46 million more than at the end of
the previous quarter.
Update on development and construction activities
- Secured,
under-construction and
ready-to-build projects
progressing according
to plan
- Commissioning of a 21 MW wind farm and a 13 MW solar farm in
France.
- Turbine assembly under way for the Apuiat wind farm in Quebec
(total 200 MW, Boralex’s share 100 MW) and the Limekiln wind farm
in Scotland (106 MW), both scheduled for commissioning in late
2024.
- Construction scheduled to start in August on the Hagersville
(300 MW) and Tilbury (80 MW) storage projects in Ontario.
- On-track development of the Des Neiges Sud project in Quebec
(total 400 MW, Boralex’s share 133 MW).
- Participation
in requests for
proposals in
North America
and Europe in
early August
- Submission of solar projects under the NYSERDA request for
proposals in New York State.
- Submission of wind projects under Allocation Round 6 (AR6) in
the United Kingdom.
- 211
MW added to
the early-stage
project pipeline
- 46 MW for solar projects in North America.
- 165 MW for solar and wind projects in Europe.
|
1 |
EBITDA(A) is a total of segment measures. Anticipated production is
an additional financial measure. “Combined”, “discretionary cash
flows” and “available cash resources and authorized financing” are
non-GAAP financial measures and do not have a standardized
definition under IFRS. Consequently, these measures may not be
comparable to similar measures used by other companies. For more
details, see the Non-IFRS financial measures and other financial
measures section of this press release. |
| 2 |
Figures in brackets indicate results on a combined basis as opposed
to a consolidated basis. |
“We are proud of the work done by our teams
since the beginning of the year, enabling us to make good progress
on our many projects, in particular the construction of the Apuiat
project in Quebec and the Limekiln project in Scotland, both slated
for commissioning by the end of the year. Limekiln was in fact the
object of our first-ever Scottish financing, which took place
during the quarter. We are also poised to start construction in the
next few weeks on the Hagersville and Tilbury battery projects in
Ontario, followed by the Des Neiges Sud project in Quebec. We are
very confident about the future of our industry. Hydro-Québec’s
recent announcements regarding near-term development of 10 GW of
large-scale projects in Quebec and the forthcoming Ontario and
British Columbia requests for proposals are very promising
developments. The current strong demand for corporate power
purchase agreements and tendering processes under way in New York
State, the United Kingdom and France are also very positive
indications of the growth potential in our target markets,” said
Boralex President and CEO Patrick Decostre.
“The impact of our strategy to optimize
electricity selling prices and the commissioning of new farms in
France, as well as an increased contribution from our joint
ventures, enabled us to increase EBITDA(A) and discretionary cash
flows this quarter. The vast majority of our indicators for the
first six months of fiscal 2024 are positive, with net earnings up
more than 41%. We are pursuing our efforts to maintain strict
financial discipline, as evidenced by our strong balance sheet and
over $620 million in available cash resources and authorized
financing. Furthermore, the introduction of the 30% Clean
Technology Investment Tax Credit (CT ITC) in Canada puts us in a
good position to pursue our growth objectives. The tax credit will
accelerate overall development of large-scale renewable energy
projects in Canada and ensure that our industry is well positioned
on the world stage when it comes to development of renewable
energy,” Mr. Decostre added.
Boralex is constantly assessing initiatives
aimed at optimizing its capital structure. Most recently, it raised
additional funds for its various growth projects using bills of
exchange for a total amount of $83 million as at June 30, 2024. The
Corporation is also in discussions with financial institutions to
pre-finance the 30% Clean Technology Investment Tax Credit
introduced by the Canadian government in June 2024. In the second
quarter, Boralex recognized an amount of $21 million in accounts
receivable, representing nearly one-third of the credit receivable
for the Apuiat construction project in Quebec.
Finally, Boralex also continued to make progress
in terms of corporate social responsibility during the quarter,
moving up from 21st to 15th place in Corporate Knights’ Best 50
list of Canada’s top corporate citizens. It also improved its ESG
corporate rating, as calculated by the Institutional Shareholder
Services group of companies (ISS ESG), from B- to B+, in addition
to being awarded Prime status.
2nd quarter highlights
Three-month periods
ended June
30
| |
Consolidated |
Combined1 |
| (in
millions of Canadians dollars, unless otherwise specified)
(unaudited) |
2024 |
|
2023 |
|
Change |
2024 |
|
2023 |
|
Change |
|
|
|
|
$ |
|
% |
|
|
|
|
|
$ |
|
% |
|
|
Power production (GWh)2 |
1,323 |
|
1,353 |
|
(30 |
) |
(2 |
) |
1,882 |
|
1,861 |
|
21 |
|
1 |
|
| Revenues from energy sales and
feed-in premium |
180 |
|
210 |
|
(30 |
) |
(14 |
) |
209 |
|
237 |
|
(28 |
) |
(12 |
) |
| Operating income |
35 |
|
38 |
|
(3 |
) |
(8 |
) |
58 |
|
57 |
|
1 |
|
3 |
|
| EBITDA(A)1 |
130 |
|
119 |
|
11 |
|
9 |
|
152 |
|
143 |
|
9 |
|
7 |
|
| Net earnings (loss) |
17 |
|
19 |
|
(2 |
) |
(11 |
) |
17 |
|
19 |
|
(2 |
) |
(11 |
) |
| Net earnings attributable to
shareholders of Boralex |
11 |
|
16 |
|
(5 |
) |
(33 |
) |
11 |
|
16 |
|
(5 |
) |
(33 |
) |
|
Per share - basic and diluted |
$0.10 |
|
$0.15 |
|
(0.05 |
) |
(34 |
) |
$0.10 |
|
$0.15 |
|
(0.05 |
) |
(34 |
) |
| Net cash flows related to
operating activities |
138 |
|
144 |
|
(6 |
) |
(4 |
) |
— |
|
— |
|
— |
|
— |
|
| Cash flows from
operations1 |
89 |
|
76 |
|
13 |
|
17 |
|
— |
|
— |
|
— |
|
— |
|
|
Discretionary cash flows1 |
17 |
|
4 |
|
13 |
|
>100 |
|
— |
|
— |
|
— |
|
— |
|
During the second quarter of 2024, Boralex
produced 1,323 GWh (1,882 GWh) of electricity, 2% less (1% more)
than the 1,353 GWh (1,861 GWh) produced in the same quarter of
2023. The decrease was mainly attributable to weather conditions
and more extensive power curtailments in France. As a result,
Boralex ended the quarter with a total production that was 11% (8%)
below anticipated production.3
Revenues from energy sales and feed-in premiums
for the three-month period ended June 30, 2024 amounted to $180
million ($209 million), 14% (12% on a combined basis) lower than in
the second quarter of 2023. The decrease was mainly attributable to
the reduced production and lower selling prices in France.
EBITDA(A)1 amounted to $130 million ($152 million), up 9% (7%)
compared to the second quarter of 2023. The decline in production
was offset by the positive impact from the strategy to optimize
electricity selling prices and the contribution of commissioning in
France, as well as an increase in the contribution from joint
ventures in North America. Net earnings amounted to $17 million,
down $2 million from $19 million for the same quarter of 2023.
Operating income totalled $35 million ($58 million), compared to
$38 million ($57 million) for the same quarter of 2023.
|
1 |
EBITDA(A) is a total of sector measures. “Combined”, “Cash flows
from operations” and “Discretionary cash flows” are non-GAAP
financial measures and do not have a standardized definition under
IFRS. Therefore, these measures may not be comparable to similar
measures used by other companies. For more details, see the
Non-IFRS financial measures and other financial measures section of
this press release. |
| 2 |
Power production includes the production for which Boralex received
financial compensation following power generation limitations
imposed by its customers since management uses this measure to
evaluate the Corporation’s performance. This adjustment facilitates
the correlation between power production and revenues from energy
sales and feed-in premium. |
| 3 |
Anticipated production is an additional financial measure. For more
details see the Non-IFRS financial measures and other financial
measures section of this press release. |
Six-month periods
ended June
30
| |
Consolidated |
Combined1 |
| (in millions of
Canadians dollars, unless otherwise specified) (unaudited) |
2024 |
|
2023 |
Change |
2024 |
|
2023 |
Change |
|
|
|
|
|
$ |
|
% |
|
|
|
|
|
$ |
|
% |
|
|
Power production (GWh)2 |
3,090 |
|
3,050 |
|
40 |
|
1 |
|
4,237 |
|
4,147 |
|
90 |
|
2 |
|
|
Revenues from energy sales and feed-in premium |
439 |
|
508 |
|
(69 |
) |
(14 |
) |
500 |
|
565 |
|
(65 |
) |
(12 |
) |
|
Operating income |
141 |
|
115 |
|
26 |
|
23 |
|
192 |
|
159 |
|
33 |
|
21 |
|
|
EBITDA(A)1 |
325 |
|
286 |
|
39 |
|
14 |
|
370 |
|
333 |
|
37 |
|
11 |
|
|
Net earnings |
90 |
|
64 |
|
26 |
|
41 |
|
90 |
|
64 |
|
26 |
|
41 |
|
|
Net earnings attributable to shareholders of Boralex |
66 |
|
49 |
|
17 |
|
36 |
|
66 |
|
49 |
|
17 |
|
36 |
|
|
Per share - basic and diluted |
$0.63 |
|
$0.46 |
|
$0.17 |
|
38 |
|
$0.63 |
|
$0.46 |
|
$0.17 |
|
38 |
|
|
Net cash flows related to operating activities |
368 |
|
388 |
|
(20 |
) |
(5 |
) |
— |
|
— |
|
— |
|
— |
|
|
Cash flows from operations1 |
246 |
|
217 |
|
29 |
|
13 |
|
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
As atJune
30 |
As atDec.
31 |
Change |
As atJune
30 |
|
As atDec.
31 |
Change |
|
|
|
|
|
$ |
|
% |
|
|
|
|
|
$ |
|
% |
|
|
Total assets |
6,867 |
|
6,574 |
|
293 |
|
4 |
|
7,708 |
|
7,304 |
|
404 |
|
6 |
|
| Debt - principal balance |
3,392 |
|
3,327 |
|
65 |
|
2 |
|
3,947 |
|
3,764 |
|
183 |
|
5 |
|
|
Total project debt |
3,008 |
|
2,844 |
|
164 |
|
6 |
|
3,563 |
|
3,281 |
|
282 |
|
9 |
|
|
Total corporate debt |
384 |
|
483 |
|
(99 |
) |
(20 |
) |
384 |
|
483 |
|
(99 |
) |
(20 |
) |
In the six-month period ended June 30, 2024,
Boralex produced 3,090 GWh (4,237 GWh) of power, slightly more than
the 3,050 GWh (4,147 GWh) produced in the same period in 2023.
Revenues from energy sales and feed-in premiums for the six- month
period ended June 30, 2024, amounted to $439 million ($500
million), down $69 million ($65 million) or 14% (12%) from the same
period in 2023.
EBITDA(A)1 amounted to $325 million ($370
million), up $39 million ($37 million) or 14% (11%) from the same
period last year. Operating income totalled $141 million ($192
million), up $26 million ($33 million) from the same period in
2023. Overall, for the six-month period ended June 30, 2024,
Boralex posted net earnings of $90 million ($90 million) compared
to net earnings of $64 million ($64 million) for the same period in
2023.
|
1 |
EBITDA(A) is a total of sector measures. “Combined”, “Cash flows
from operations” and “Discretionary cash flows” are non-GAAP
financial measures and do not have a standardized definition under
IFRS. Therefore, these measures may not be comparable to similar
measures used by other companies. For more details, see the
Non-IFRS financial measures and other financial measures section of
this press release. |
|
2 |
Power production includes the production for which Boralex received
financial compensation following power generation limitations
imposed by its customers since management uses this measure to
evaluate the Corporation’s performance. This adjustment facilitates
the correlation between power production and revenues from energy
sales and feed-in premium. |
Outlook
Boralex’s 2025 Strategic Plan is built around
the same four strategic directions as the plan launched in 2019 –
growth, diversification, customers and optimization – and six
corporate targets. The details of the plan, which also sets out
Boralex’s corporate social responsibility strategy, are found in
the Corporation’s annual report. Highlights of the main
achievements for the quarter ended June 30, 2024, in relation to
the 2025 Strategic Plan can be found in the 2024 Interim Report 2,
in the Investors section of the Boralex website.
In the coming quarters, Boralex will continue to
work on its various initiatives under the strategic plan, including
project development, analysis of acquisition targets and
optimization of power sales and operating costs.
Finally, to fuel its organic growth, the
Corporation has a pipeline of projects at various stages of
development defined on the basis of clearly identified criteria,
totaling 6.8 GW of wind, solar and energy storage projects.
Dividend declaration
The Corporation’s Board of Directors has
authorized and announced a quarterly dividend of $0.1650 per common
share. This dividend will be paid on September 17, 2024, to
shareholders of record at the close of business on August 30, 2024.
Boralex designates this dividend as an “eligible dividend” pursuant
to paragraph 89 (14) of the Income Tax Act (Canada) and all
provincial legislation applicable to eligible dividends.
About Boralex
At Boralex, we have been providing affordable
renewable energy accessible to everyone for over 30 years. As a
leader in the Canadian market and France’s largest independent
producer of onshore wind power, we also have facilities in the
United States and development projects in the United Kingdom. Over
the past five years, our installed capacity has more than doubled
to over 3.1 GW. We are developing a portfolio of projects in
development and construction of more than 6.8 GW in wind, solar and
storage projects, guided by our values and our corporate social
responsibility (CSR) approach. Through profitable and sustainable
growth, Boralex is actively participating in the fight against
global warming. Thanks to our fearlessness, our discipline, our
expertise and our diversity, we continue to be an industry leader.
Boralex’s shares are listed on the Toronto Stock Exchange under the
ticker symbol BLX.
For more information, visit www.boralex.com or
www.sedarplus.ca. Follow us on Facebook, LinkedIn and Twitter.
Non-IFRS measuresPerformance
measures
In order to assess the performance of its assets
and reporting segments, Boralex uses performance measures.
Management believes that these measures are widely accepted
financial indicators used by investors to assess the operational
performance of a company and its ability to generate cash through
operations. The non-IFRS and other financial measures also provide
investors with insight into the Corporation’s decision making as
the Corporation uses these non-IFRS financial measures to make
financial, strategic and operating decisions. The non-IFRS and
other financial measures should not be considered as substitutes
for IFRS measures.
These non-IFRS financial measures are derived
primarily from the audited consolidated financial statements, but
do not have a standardized meaning under IFRS; accordingly, they
may not be comparable to similarly named measures used by other
companies. Non-IFRS and other financial measures are not audited.
They have important limitations as analytical tools and investors
are cautioned not to consider them in isolation or place undue
reliance on ratios or percentages calculated using these non-IFRS
financial measures.
|
Non-IFRS financial
measures |
|
Specific financialmeasure |
Use |
Composition |
Most
directlycomparable IFRSmeasure |
|
Financial data - Combined (all disclosed financial data) |
To assess the operating performance and the ability of a company to
generate cash from its operations.The Interests represent
significant investments by Boralex. |
Results from the combination of the financial information of
Boralex Inc. under IFRS and the share of the financial information
of the Interests.Interests in the Joint Ventures and associates,
Share in earnings (losses) of the Joint Ventures and associates and
Distributions received from the Joint Ventures and associates are
then replaced with Boralex’s respective share in the financial
statements of the Interests (revenues, expenses, assets,
liabilities, etc.) |
Respective financial data - Consolidated |
|
Discretionary cash flows |
To assess the cash generated from operations and the amount
available for future development or to be paid as dividends to
common shareholders while preserving the long-term value of the
business.Corporate objectives for 2025 from the strategic
plan. |
Net cash flows related to operating activities before "change in
non-cash items related to operating activities,”
less(i) distributions paid to non-controlling
shareholders;(ii) additions to property, plant and
equipment (maintenance of operations);(iii) repayments
on non-current debt (projects) and repayments to tax equity
investors;(iv) principal payments related to lease
liabilities;(v) adjustments for non-operational items;
plus(vi) development costs (from the statement of
earnings). |
Net cash flows related to operating activities |
|
Cash flows from operations |
To assess the cash generated by the Company's operations and its
ability to finance its expansion from these funds. |
Net cash flows related to operating activities before changes in
non-cash items related to operating activities. |
Net cash flows related to operating activities |
|
Non-IFRS financial
measures |
|
Specific financialmeasure |
Use |
Composition |
Most directlycomparable
IFRSmeasure |
|
Available cash and cash equivalents |
To assess the cash and cash equivalents available, as at balance
sheet date, to fund the Corporation's growth. |
Represents cash and cash equivalents, as stated on the balance
sheet, from which known short-term cash requirements are
excluded. |
Cash and cash equivalents |
|
Available cash resources and authorized financing |
To assess the total cash resources available, as at balance sheet
date, to fund the Corporation's growth. |
Results from the combination of credit facilities available to fund
growth and the available cash and cash equivalents. |
Cash and cash equivalents |
|
Other financial
measures - Total
of segments
measure |
|
Specific financial
measure |
Most directly
comparable IFRS
measure |
|
EBITDA(A) |
Operating income |
|
Other financial
measures -
Supplementary Financial
Measures |
|
Specific financial
measure |
Composition |
|
Credit facilities available for growth |
The credit facilities available for growth include the unused
tranche of the parent company's credit facility, apart from the
accordion clause, as well as the unused tranche credit facilities
of subsidiaries which includes the unused tranche of the credit
facility- France and the unused tranche of the construction
facility. |
|
Anticipated production |
For older sites, anticipated production by the Corporation is based
on adjusted historical averages, planned commissioning and
shutdowns and, for all other sites, on the production studies
carried out. |
Combined
The following tables reconcile Consolidated financial data with
data presented on a Combined basis:
| |
2024 |
|
2023 |
|
|
(in millions of Canadian dollars) (unaudited) |
Consolidated |
|
Reconciliation(1) |
|
Combined |
|
Consolidated |
|
Reconciliation(1) |
|
Combined |
|
|
Three-month periods
ended June
30: |
|
|
|
|
|
|
|
|
|
|
|
|
| Power production (GWh)(2) |
1,323 |
|
559 |
|
1,882 |
|
1,353 |
|
508 |
|
1,861 |
|
| Revenues from energy sales and
feed-in premium |
180 |
|
29 |
|
209 |
|
210 |
|
27 |
|
237 |
|
| Operating income |
35 |
|
23 |
|
58 |
|
38 |
|
19 |
|
57 |
|
| EBITDA(A) |
130 |
|
22 |
|
152 |
|
119 |
|
24 |
|
143 |
|
| Net
earnings |
17 |
|
— |
|
17 |
|
19 |
|
— |
|
19 |
|
|
Six-month periods
ended June
30: |
|
|
|
|
|
|
|
|
|
|
|
|
| Power production (GWh)(2) |
3,090 |
|
1,147 |
|
4,237 |
|
3,050 |
|
1,097 |
|
4,147 |
|
| Revenues from energy sales and
feed-in premiums |
439 |
|
61 |
|
500 |
|
508 |
|
57 |
|
565 |
|
| Operating income |
141 |
|
51 |
|
192 |
|
115 |
|
44 |
|
159 |
|
| EBITDA(A) |
325 |
|
45 |
|
370 |
|
286 |
|
47 |
|
333 |
|
| Net
earnings |
90 |
|
— |
|
90 |
|
64 |
|
— |
|
64 |
|
|
|
As at June
30, 2024 |
|
As at December
31, 2023 |
|
|
Total assets |
6,867 |
|
841 |
|
7,708 |
|
6,574 |
|
730 |
|
7,304 |
|
| Debt -
Principal balance |
3,392 |
|
555 |
|
3,947 |
|
3,327 |
|
437 |
|
3,764 |
|
|
(1) |
Includes the respective contribution of joint ventures and
associates as a percentage of Boralex's interest less adjustments
to reverse recognition of these interests under IFRS. This
contribution is attributable to the North America segment's wind
farms and includes corporate expenses of $1 million under EBITDA(A)
for the six-month period ended June 30, 2024 ($1 million as at June
30, 2023). |
| (2) |
Includes financial compensation following electricity production
limitations imposed by customers. |
EBITDA(A)
EBITDA(A) is a total of segment financial
measures and represents earnings before interest, taxes,
depreciation and amortization, adjusted to exclude other items such
as acquisition and integration costs, other loss (gains), net loss
(gain) on financial instruments and foreign exchange loss (gain),
with the last two items included under Other.
EBITDA(A) is used to assess the performance of
the Corporation's reporting segments.
EBITDA(A) is reconciled to the most comparable
IFRS measure, namely, operating income, in the following table:
|
|
|
|
|
|
2024 |
|
|
|
|
|
2023 |
|
Change2024 vs 2023 |
|
(in millions of Canadian dollars) (unaudited) |
Consolidated |
|
Reconciliation(1) |
|
Combined |
|
Consolidated |
|
Reconciliation(1) |
|
Combined |
|
Consolidated |
|
Combined |
|
|
Three-month periods
ended June
30: |
|
|
|
|
EBITDA(A) |
130 |
|
22 |
|
152 |
|
119 |
|
24 |
|
143 |
|
11 |
|
9 |
|
|
Amortization |
(74 |
) |
(14 |
) |
(88 |
) |
(72 |
) |
(14 |
) |
(86 |
) |
(2 |
) |
(2 |
) |
|
Impairment |
(3 |
) |
— |
|
(3 |
) |
— |
|
— |
|
— |
|
(3 |
) |
(3 |
) |
|
Other losses |
(3 |
) |
— |
|
(3 |
) |
— |
|
— |
|
— |
|
(3 |
) |
(3 |
) |
|
Share in earnings of joint ventures and associates |
(15 |
) |
15 |
|
— |
|
(26 |
) |
26 |
|
— |
|
11 |
|
— |
|
|
Change in fair value of a derivative included in the share in
earnings of a joint venture |
— |
|
— |
|
— |
|
17 |
|
(17 |
) |
— |
|
(17 |
) |
— |
|
|
Operating income |
35 |
|
23 |
|
58 |
|
38 |
|
19 |
|
57 |
|
(3 |
) |
1 |
|
|
|
|
|
|
|
|
|
|
Six-month periods ended June 30: |
|
|
|
|
|
|
|
EBITDA(A) |
325 |
|
45 |
|
370 |
|
286 |
|
47 |
|
333 |
|
39 |
|
37 |
|
|
Amortization |
(147 |
) |
(29 |
) |
(176 |
) |
(145 |
) |
(29 |
) |
(174 |
) |
(2 |
) |
(2 |
) |
|
Impairment |
(3 |
) |
— |
|
(3 |
) |
— |
|
— |
|
— |
|
(3 |
) |
(3 |
) |
|
Other gains |
1 |
|
— |
|
1 |
|
— |
|
— |
|
— |
|
1 |
|
1 |
|
|
Share in earnings of joint ventures and associates |
(34 |
) |
34 |
|
— |
|
(41 |
) |
41 |
|
— |
|
7 |
|
— |
|
|
Change in fair value of a derivative included in the share in
earnings of a joint venture |
(1 |
) |
1 |
|
— |
|
15 |
|
(15 |
) |
— |
|
(16 |
) |
— |
|
|
Operating income |
141 |
|
51 |
|
192 |
|
115 |
|
44 |
|
159 |
|
26 |
|
33 |
|
|
(1) |
Includes the respective contribution of joint ventures and
associates as a percentage of Boralex's interest less adjustments
to reverse recognition of these interests under IFRS. |
Cash flow
from operations
and discretionary
cash flows
The Corporation computes the cash flow from operations and
discretionary cash flows as follows:
| |
Consolidated |
| |
Three-month periods ended |
Twelve-month periods ended |
|
|
June 30, |
June 30, |
|
December 31, |
|
|
(in millions of Canadian dollars) (unaudited) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
Net cash flows
related to
operating activities |
138 |
|
144 |
|
476 |
|
496 |
|
|
Change in non-cash items relating to operating activities |
(49 |
) |
(68 |
) |
(2 |
) |
(51 |
) |
|
Cash flows from
operations |
89 |
|
76 |
|
474 |
|
445 |
|
| Repayments on non-current debt
(projects)(1) |
(74 |
) |
(73 |
) |
(233 |
) |
(232 |
) |
|
Adjustment for non-operating items(2) |
1 |
|
1 |
|
6 |
|
6 |
|
|
|
16 |
|
4 |
|
247 |
|
219 |
|
| Principal payments related to
lease liabilities(3) |
(3 |
) |
(4 |
) |
(17 |
) |
(17 |
) |
| Distributions paid to
non-controlling shareholders(4) |
(7 |
) |
(2 |
) |
(67 |
) |
(57 |
) |
|
Additions to property, plant and equipment (maintenance of
operations)(5) |
(2 |
) |
(4 |
) |
(5 |
) |
(6 |
) |
|
Development costs (from statement of earnings)(6) |
13 |
|
10 |
|
48 |
|
45 |
|
|
Discretionary cash
flows |
17 |
|
4 |
|
206 |
|
184 |
|
|
(1) |
Includes repayments on non-current debt (projects) and repayments
to tax equity investors, and excludes VAT bridge financing, early
debt repayments and repayments under the construction facility -
Boralex Energy Investments portfolio and the CDPQ Fixed Income Inc.
term loan. |
|
(2) |
For the
twelve-month periods ended June 30, 2024 and December 31, 2023,
favourable adjustment consisting mainly of acquisition, integration
and transaction costs. |
|
(3) |
Excludes
the principal payments related to lease liabilities for projects
under development and construction. |
|
(4) |
Comprises
distributions paid to non-controlling shareholders as well as the
portion of discretionary cash flows attributable to the
non-controlling shareholder of Boralex Europe Sàrl. |
|
(5) |
Excludes
the additions to the property, plant and equipment of regulated
assets (treated as assets under construction since they are
regulated assets for which investments in the plant are considered
in the setting of its electricity selling price). For the
twelve-month period ended June 30, 2024, a favourable adjustment of
$3 million was made to take into account this change of
position. |
|
(6) |
During
Q1-2024, the Corporation reclassified the employee benefits for
2023 and 2024 related to its incentive plans, which were reported
in full under Operating expenses in the consolidated statements of
earnings. To better allocate these expenses to the Corporation's
various functions and thus provide more relevant information to
users of the financial statements, the Corporation is now
allocating these costs to Operating, Administrative and Development
expenses in the consolidated statements of earnings according to
the breakdown of staff. This change resulted in a $1 million
increase in development costs for the three-month period ended June
30, 2023, a $2 million increase for the twelve-month period ended
June 30, 2024, and a $5 million increase for the year ended
December 31, 2023. |
Available cash
and cash
equivalents and
available cash
resources and authorized
financing
The Corporation defines available cash and cash equivalents as
well as available cash resources and authorized financing as
follows:
| |
Consolidated |
|
|
As at June 30 |
|
As at December 31 |
|
| (in
millions of Canadian dollars) (unaudited) |
2024 |
|
2023 |
|
|
Cash and cash equivalents |
601 |
|
478 |
|
| Cash and cash equivalents held
by entities subject to project debt agreements(1) |
(480 |
) |
(388 |
) |
| Bank overdraft |
(16 |
) |
(6 |
) |
| Cash
and cash equivalents earmarked for known short-term
requirements |
(14 |
) |
— |
|
|
Available cash
and cash
equivalents |
91 |
|
84 |
|
| Credit
facilities available for growth |
530 |
|
463 |
|
|
Available cash
resources and
authorized financing |
621 |
|
547 |
|
|
(1) |
This cash can be used for the operations of the respective
projects, but is subject to restrictions for non-project related
purposes under the credit agreements. |
Disclaimer regarding forward-looking
statements
Certain statements contained in this release,
including those related to results and performance for future
periods, installed capacity targets, EBITDA(A) and discretionary
cash flows, the Corporation's strategic plan, business model and
growth strategy, organic growth and growth through mergers and
acquisitions, obtaining an investment grade credit rating, payment
of a quarterly dividend, the Corporation’s financial targets, the
projects commissioning dates, the portfolio of renewable energy
projects, the Corporation’s Growth Path, the bids for new storage
and solar projects and its Corporate Social Responsibility (CSR)
objectives are forward-looking statements based on current
forecasts, as defined by securities legislation. Positive or
negative verbs such as “will,” “would,” “forecast,” “anticipate,”
“expect,” “plan,” “project,” “continue,” “intend,” “assess,”
“estimate” or “believe,” or expressions such as “toward,” “about,”
“approximately,” “to be of the opinion,” “potential” or similar
words or the negative thereof or other comparable terminology, are
used to identify such statements.
Forward-looking statements are based on major
assumptions, including those about the Corporation’s return on its
projects, as projected by management with respect to wind and other
factors, opportunities that may be available in the various sectors
targeted for growth or diversification, assumptions made about
EBITDA(A) margins, assumptions made about the sector realities and
general economic conditions, competition, exchange rates as well as
the availability of funding and partners. While the Corporation
considers these factors and assumptions to be reasonable, based on
the information currently available to the Corporation, they may
prove to be inaccurate.
Boralex wishes to clarify that, by their very
nature, forward-looking statements involve risks and uncertainties,
and that its results, or the measures it adopts, could be
significantly different from those indicated or underlying those
statements, or could affect the degree to which a given
forward-looking statement is achieved. The main factors that may
result in any significant discrepancy between the Corporation’s
actual results and the forward-looking financial information or
expectations expressed in forward-looking statements include the
general impact of economic conditions, fluctuations in various
currencies, fluctuations in energy prices, the risk of not renewing
PPAs or being unable to sign new corporate PPA, the risk of not
being able to capture the US or Canadian investment tax credit,
counterparty risk, the Corporation’s financing capacity,
cybersecurity risks, competition, changes in general market
conditions, industry regulations and amendments thereto,
particularly the legislation, regulations and emergency measures
that could be implemented for time to time to address high energy
prices in Europe, litigation and other regulatory issues related to
projects in operation or under development, as well as certain
other factors considered in the sections dealing with risk factors
and uncertainties appearing in Boralex's MD&A for the fiscal
year ended December 31, 2023.
Unless otherwise specified by the Corporation,
forward-looking statements do not take into account the effect that
transactions, non-recurring items or other exceptional items
announced or occurring after such statements have been made may
have on the Corporation’s activities. There is no guarantee that
the results, performance or accomplishments, as expressed or
implied in the forward-looking statements, will materialize.
Readers are therefore urged not to rely unduly on these
forward-looking statements.
Unless required by applicable securities
legislation, Boralex’s management assumes no obligation to update
or revise forward- looking statements in light of new information,
future events or other changes.
| For more information: |
| |
|
| MEDIA |
INVESTOR RELATIONS |
| Camille Laventure |
Stéphane Milot |
| Advisor, Public Affairs and External Communications |
Vice President, Investor Relations |
| Boralex Inc. |
Boralex Inc. |
| 438-883-8580 |
514-213-1045 |
| camille.laventure@boralex.com |
stephane.milot@boralex.com |
| |
|
| Source: Boralex Inc. |
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