Canadian company Northland Power said that, excluding investment income from the subordinated debt, its management expects Gemini and Nordsee One offshore wind farms to generate an adjusted EBITDA of EUR 170-190 million and EUR 160-180 million, respectively, once the two wind farms are fully operational in 2018.
The amounts are reflecting Northland’s equity interest in the offshore wind farms, the 600MW Gemini in the Nerherlands and the 332MW Nordsee One in Germany, which are under construction and are expected to be completed in 2017.
Northland Power recorded a net income of $27.5 million (approx. EUR 18 million) for 2015, compared to a net loss of $177.5 million in 2014, and a consolidated adjusted EBITDA of $402.1 million, which is $38.6 million higher than the prior year, the company reported in its financial results for Q4 and the year ended December 31, 2015.
In the fourth quarter, the company had a net income of $9 million, versus a net loss of $70.4 million in the fourth quarter of 2014. Quarterly adjusted EBITDA increased by 1% to $94.4 million in 2015.
“Northland’s strong 2015 financial results tell only part of our story,” said John Brace, Chief Executive Officer. “Over the course of the year we delivered on our promise of superior returns, while operating our facilities safely and efficiently and making notable progress on our approximately $6 billion construction portfolio. With multiple international, large-scale projects underway, we’re not just building power projects, we are also building an organization of increasing scale and capability. Our results demonstrate that we are well-positioned to continue growing the company while honouring our commitment to pay our dividend and create long-term value for our shareholders.”
The 2016 adjusted EBITDA is expected to increase from $402 million in 2015 to between $500 and $530 million due to, among other factors, EUR 80 to EUR 90 million in additional adjusted EBITDA from Northland’s share of net pre-completion revenue from Gemini offshore wind project at an assumed average rate of CA$1.47/euro.