Boralex announces net earnings of $17M for the second quarter of 2024, an increase in its financial flexibility and on-track progress of projects in growth path totaling 851 MW

Press Release

Montreal, Quebec, August 14, 2024 — 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.

• 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.

• 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.

Read More:

IBF4