Canadian power company Northland Power reported CAD 178 million (EUR 117.4 million) net income in the first quarter of 2018, a 78% increase compared to the same quarter last year primarily due to higher operating income from the Gemini and the Nordsee One offshore wind farms.
Electricity production at the offshore wind farms, including pre-completion production, increased 60% or 380 GWh compared to the first quarter of last year, Northland said. The increase was primarily due to all of Nordsee One’s turbines producing power in the first quarter of 2018, whereas the project was under construction last year.
The offshore wind division generated sales and adjusted EBITDA of CAD 316.1 million and CAD 186.5 million, respectively, an increase of CAD 138.7 million and CAD 90.6 million compared to the same quarter last year, attributed to the 332MW Nordsee One reaching full commercial operations in December 2017 and higher wind resources at the 600MW Gemini compared to the same quarter last year. Foreign exchange rate fluctuations resulted in CAD 45.5 million higher revenue compared to the same quarter last year.
Hai Long 2
The Bureau of Energy of Taiwan has allocated 300MW, 180MW net to Northland, to the Hai Long 2 offshore wind project under Taiwan’s Feed-in-Tariff program. The project, located approximately 50km off the coast of Taiwan, is scheduled to connect to Taiwan’s grid in 2024 to execute a 20-year power contract under Taiwan’s FIT program. Northland and its partner Yushan Energy have economic interests of 60% and 40% in Hai Long 2, respectively.
The 252MW Deutsche Bucht offshore wind project in the German North Sea is progressing according to schedule and budget, Northland said. Manufacturing of the main components is on schedule and the first offshore activities have been completed. Offshore installations will commence in the second half of 2018 with project completion expected by the end of 2019. The total estimated project cost is approximately EUR 1.3 billion.
“2018 is off to an excellent start,” said John Brace, Northland Power’s Chief Executive Officer. “Northland’s Hai Long 2 offshore wind project in Taiwan was allocated 300 MW under Taiwan’s Feed-In Tariff program, our operating assets are performing well, and construction on our Deutsche Bucht offshore wind project continues on schedule. We achieved a 250% increase in free cash flow per share and a 47% increase in adjusted EBITDA over the same quarter last year. We continue to focus on generating disciplined growth and robust shareholder returns.”