Northland Power Reports First Quarter 2024 Results
Press Release
TORONTO, May 15, 2024 – Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) reported today financial results for the three months ended March 31, 2024. All dollar amounts set out herein are in thousands of Canadian dollars, unless otherwise stated.
“We are off to a strong start in 2024 with first quarter results better than expected, thanks to strong winds experienced at our offshore wind facilities,” said Mike Crawley, Northland’s President and Chief Executive Officer. “Construction programs for our large offshore wind projects in Taiwan and Poland, and energy storage project in Canada, continue to progress, with major pieces of equipment continuing to arrive at all three projects, and Hai Long’s 2024 in-water installation campaign fully underway.”
“Execution of these three projects remains a top priority for Northland and our teams are focused on delivering these projects safely and successfully,” said John Brace, Executive Chair.
First Quarter Highlights
Financial results for the three months ended March 31, 2024, were higher compared to the same quarter of 2023, primarily due to higher wind resource across all offshore wind facilities and contribution from the New York onshore wind projects that achieved commercial operations in October 2023. This increase was partially offset by lower revenue generated from the Spanish portfolio primarily due to lower solar resource and lower market revenue.
Financial Results
- Sales increased to $755 million from $622 million in 2023.
- Gross Profit increased to $697 million from $569 million in 2023.
- Net Income increased to $149 million from $107 million in 2023.
- Adjusted EBITDA (a non-IFRS measure) increased to $454 million from $352 million in 2023.
- Adjusted Free Cash Flow per share (a non-IFRS measure) increased to $0.88 from $0.72 in 2023.
- Free Cash Flow per share (a non-IFRS measure) increased to $0.85 from $0.62 in 2023.
The following table presents key IFRS and non-IFRS financial measures and operational results. Sales, gross profit, operating income and net income, as reported under IFRS, include consolidated results of entities not wholly owned by Northland, whereas Northland’s non-IFRS financial measures include only Northland’s proportionate ownership interest.
| Summary of Consolidated Results | |||||
| (in thousands of dollars, except per share amounts) | Three months ended March 31, | ||||
| 2024 | 2023 | ||||
| FINANCIALS | |||||
| Sales | $ | 754,920 | $ | 621,721 | |
| Gross profit | 697,454 | 568,903 | |||
| Operating income | 346,169 | 272,542 | |||
| Net income (loss) | 149,297 | 107,137 | |||
| Net income (loss) attributable to common shareholders | 75,603 | 69,894 | |||
| Adjusted EBITDA (a non-IFRS measure) (2) | 453,866 | 351,701 | |||
| Cash provided by operating activities | 294,263 | 297,062 | |||
| Adjusted Free Cash Flow (a non-IFRS measure) (2) | 225,732 | 180,071 | |||
| Free Cash Flow (a non-IFRS measure) (2) | 217,407 | 154,693 | |||
| Cash dividends paid | 51,158 | 50,047 | |||
| Total dividends declared (1) | $ | 76,699 | $ | 75,316 | |
| Per Share | |||||
| Weighted average number of shares — basic and diluted (000s) | 255,481 | 250,793 | |||
| Net income (loss) attributable to common shareholders — basic and diluted | $ | 0.29 | $ | 0.27 | |
| Adjusted Free Cash Flow — basic (a non-IFRS measure) (2) | $ | 0.88 | $ | 0.72 | |
| Free Cash Flow — basic (a non-IFRS measure) (2) | $ | 0.85 | $ | 0.62 | |
| Total dividends declared | $ | 0.30 | $ | 0.30 | |
| ENERGY VOLUMES | |||||
| Electricity production in gigawatt hours (GWh) | 3,467 | 2,831 | |||
| (1) Represents total dividends paid to common shareholders, including dividends in cash or in shares under Northland’s dividend reinvestment plan. | |||||
| (2) See Forward-Looking Statements and Non-IFRS Financial Measures below. | |||||
First Quarter Results Summary
Offshore wind facilities
Electricity production for the three months ended March 31, 2024, increased by 12% or 175GWh compared to the same quarter of 2023. This was primarily due to a higher wind resource across all offshore wind facilities and lower unpaid curtailments related to negative prices in Germany, partially offset by higher unpaid curtailments due to grid outages in our German facilities.
Sales of $449 million for the three months ended March 31, 2024, increased 30% or $103 million, compared to the same quarter of 2023, primarily due to higher production across all offshore wind facilities by $50 million, a $34 million P&I factor adjustment in 2023 and $18 million related to various other items.
Adjusted EBITDA of $297 million for the three months ended March 31, 2024, increased 31% or $71 million compared to the same quarter of 2023, due to the same factors as noted above.
An important indicator for performance of offshore wind facilities is the current and historical average power production of the facility. The following tables summarize actual electricity production and the historical average, high and low, for the applicable operating periods of each offshore facility:
IBF4
