Canada’s energy company Northland Power has reported CAD 93.3 million (EUR 62 million) net income for the third quarter of 2018, a 194% increase compared to CAD 31.7 million net income in the same period last year, attributed mostly to higher production at the Nordsee One offshore wind farm in Germany and higher production and wholesale market prices at the Gemini offshore wind farm in the Netherlands.
The company’s sales for the quarter of USD 350.2 million increased 19% or CAD 54.9 million, and gross profit of CAD 321 million increased 21% or CAD 56 million compared to the same quarter last year, again due to the better outputs at the two offshore wind farms.
Adjusted EBITDA of CAD 196.8 million increased 23% or CAD 36.6 million compared to the same quarter last year.
Electricity production, including pre-completion production, at the offshore wind farms increased 113 GWh or 22% compared to the same quarter last year primarily due to all of Nordsee One’s turbines producing power during the quarter, whereas the project was under construction last year.
Sales and adjusted EBITDA of CAD 201.4 million and CAD 111 million, respectively, increased CAD 58.4 million and CAD 36.6 million compared to the same quarter last year as a result of the 332MW Nordsee One having reached full commercial operations in December 2017 and higher production and higher wholesale market prices at the 600MW Gemini. Foreign exchange rate fluctuations resulted in CAD 9.6 million higher revenue compared to the same quarter last year, the company said.
Looking ahead, Northland has narrowed its guidance range for 2018 adjusted EBITDA to be in the range of CAD 870 to CAD 900 million (formerly, CAD 860 to CAD 930 million) and 2018 free cash flow per share to be in the range of CAD 1.75 to CAD 1.95 (formerly, CAD 1.70 to CAD 2.00). The narrowed range reflects Northland’s year-to-date results including unusually lower than historical average offshore wind speeds in northern Europe for the first nine months of the year.