Northland Power’s Numbers Rise in Q2
Northland Power has issued its results for the second quarter of 2014, stating that the company achieves strong results while continuing to expand portfolio of operating assets.
Northland’s consolidated sales, adjusted EBITDA and operating income for the three months ending June 30, 2014 were significantly higher than the same period of 2013.
Second Quarter Highlights:
- 63% increase in quarterly earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) from 2013;
- 43% increase in quarterly free cash flow from 2013;
- Decreased quarterly cash payout ratio to 93% of free cash flow from 108% in the second quarter of 2013 (126% excluding the effect of the Dividend Reinvestment Plan versus 144% in 2013);
- Completed the acquisition of a 60% controlling interest in Project Gemini, a 600 megawatt (MW) offshore wind project located off the coast of the Netherlands in the North Sea;
- Subsequent to the acquisition, Project Gemini reached financial close, having placed all of the EUR2.8 billion of equity and debt commitments required for the project.
- Declared commercial operations on Northland’s 60 MW (30 MW net interest) McLean’s wind project located on Manitoulin Island, Ontario, on May 1, 2014. The project was completed on time and on budget, and has a 20-year power purchase agreement (PPA) with the Ontario Power Authority (OPA) under Ontario’s renewable energy Feed-in-Tariff (FIT) Program;
- Commenced construction on the final remaining ground-mounted solar projects (“Cluster 4”) and completed $240 million of non-recourse project financing for the remaining unfinanced solar projects; and
- Due to the strong performance in our operations over the first half of 2014, Northland has increased its adjusted EBITDA forecast range for 2014 upward by $5 million to $350 million to $360 million. The forecasted payout ratio range for 2014 was also favorably adjusted to be in the range of 100% to 110% of free cash flow on a total dividend basis.
“We delivered excellent financial results in the second quarter while continuing to grow the megawatts in our operating asset base,” said John Brace, Chief Executive Officer. “Our free cash flow increased by 43% over the same quarter last year, and adjusted EBITDA increased by 63%. We completed our 60 MW McLean’s wind project on time and on budget, and closed financing on our five remaining Ontario ground-mounted solar projects.
“We also reached financial close on Gemini, representing the largest-ever financing for an offshore wind farm; the project has now entered construction and is proceeding well. These results demonstrate Northland’s ongoing focus and strength: delivering long-term value to our shareholders through steady growth and a commitment to excellence in all that we do.”