Boralex Inc. ("Boralex" or the "Corporation") (TSX: BLX) announced its results for the third quarter ended September 30, 2016. The Corporation recorded stable revenues from energy sales of $53.9 million (up 2% to $66.2 million under proportionate consolidation) and an 11% decline in EBITDA(A) to $24.6 million (down 8% to $35.2 million under proportionate consolidation) while EBITDA(A) margin decreased from 51% in 2015 to 46% in 2016 (from 59% to 53% under proportionate consolidation).
Commenting on the quarterly results as well as recent achievements, Boralex President and Chief Executive Officer Patrick Lemaire pointed out, "Despite these below-than-expected results stemming from weather conditions well beyond our control, we keep developing our projects while continuing to enhance our pipeline. The additions made in this respect during the third quarter also offer sustained growth prospects in the medium term. What's more, with our excellent financial flexibility, we can develop our projects pipeline with returns exceeding our cost of capital, thereby continuing to create value for our shareholders."
As at today (11/9), Boralex has 224 MW of projects under construction, including the wind power projects in France announced today, namely Le Pelon (10 WM) and Chemin de Grès (30 MW). Factoring in these additions as well as other growth opportunities yet to be identified, Boralex expects to achieve its target of an asset base of over 1,650 MW by the end of 2020, which is equivalent to nearly 50% growth from its current level. Furthermore, against the background of a changing regulatory environment in France, the Corporation confirms that it owns the equivalent of 87 MW of projects ready to build and for which connection to the grid and a pre-determined fixed rate are assured. Finally, Boralex expects to secure the long term agreements in France associated with indexed feed-in-tariff for 200 to 250 MW of its projects by the end of the year.
FINANCIAL HIGHLIGHTS
Under proportionate consolidation, power production and revenues from energy sales are up compared with the same quarter of 2015, reflecting in particular the contribution of six new sites commissioned in the second half of 2015 as well as the contribution of a new wind farm commissioned at the beginning of August 2016 in France. However, with respect to EBITDA(A), the contribution of these new sites did not offset the impact of significantly less favourable weather conditions, primarily for the existing wind farms in France and the hydroelectric power stations in the United States. Under IFRS, power production and revenues from energy sales were relatively stable while EBITDA(A) decreased by about 11% (from $27.7 million to $24.6 million).
Boralex's cash flows from operations amounted to $13.2 million as at September 30, 2016 ($9.4 million under proportionate consolidation) compared with $31.8 million ($17.2 million under proportionate consolidation) for the three-month period ended September 30, 2015. Last, the Corporation recorded a net loss attributable to shareholders of Boralex of $10.4 million ($0.16 per share) compared with a loss of $15.4 million ($0.32 per share) in 2015. Under proportionate consolidation, the Corporation recorded a net loss attributable to shareholders of Boralex of $16.8 million ($0.26 per share) compared with a net loss of $15.4 million ($0.32 per share) in 2015.
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