Northland Power Inc. reported its financial results for the quarter ended September 30, 2014.
Gross profit for the third quarter was up 11 percent totaling to CAD 110 million compared to the same period last year. For the 9 months period, gross profit CAD 347 million with an increase of 44 percent.
“We are pleased to report robust financial results in the third quarter along with continued growth of our operating assets,” said John Brace, Chief Executive Officer. “The purchase of a majority stake in the Nordsee projects demonstrates our ability to deliver on our strategy of securing attractive longer-term, offtaker backed opportunities to create attractive growth.”
“Concurrently, we achieved a 15% increase in quarterly adjusted EBITDA over the same quarter last year. Our strong results and continued execution of our offshore wind strategy ensures a prosperous future ahead for Northland.”
The net income for third quarter period was negative with CAD 44 million.
According to the company net loss exceeded the prior year because the increase in adjusted EBITDA was more than offset by higher finance costs and a fair value loss on derivative contracts. A significant portion ($58 million) of the loss represents the fair value accounting treatment of Gemini’s interest rate swaps that are marked-to-market and consolidated with Northland’s operating results. These fair value adjustments are non-cash items that will reverse over time, and have no impact on the cash obligations of Northland or its projects.
Earlier this year, Northland acquired 85% stake in three offshore wind projects in Germany, with one 332 megawatt (MW) near-term project to commence construction in 2015 – Nordsee One.