May 9 (Renewables Now) - Canada-based Northland Power Inc (TSE:NPI) on Wednesday reported a 4% year-on-year decrease in first-quarter free cash flow but increased production and earnings from onshore renewables helped it post a 1% rise in adjusted EBITDA.
The company raised its earnings before interest, tax, depreciation and amortisation (EBITDA) in the three months to CAD 294 million (USD 218.2m/EUR 195m), mainly thanks to the 9% higher generation of its solar and wind parks, which amounted to 35 GWh. Net profit, meanwhile, was 15% higher than in the year-ago period, at CAD 204 million, as a result of the improved gross profit and non-cash fair value gain on derivative contracts. Sales were up 3% to CAD 486 million.
Free cash flow, on the other hand, slipped by 4% to CAD 142 million, or CAD 0.84 per share, due to debt repayments related to the 332-MW Nordsee One wind farm in the German North Sea, which was commissioned at end-2017. The drop was partly offset by a decrease in net interest expense and the higher power generation and earnings from operational facilities.
“Our first quarter results are in line with our expectations, setting the stage for a solid 2019 as we continue to execute our strategy,” said president and CEO Mike Crawley. He highlighted the company’s signing of a power purchase agreement (PPA) for the 300-MW Hai Long 2A wind project off Taiwan, to be part of a 1,044-MW complex, and taking a final investment decision for the construction of the 130-MW La Lucha solar project in Mexico. The CEO added that the construction of the 269-MW Deutsche Bucht offshore wind project in the German North Sea is on track to be completed by end-2019, with the plant expected to start adding to Northland Power’s results next year.
Northland Power confirmed its full-year guidance for adjusted EBITDA of between CAD 920 million and CAD 1.01 billion in 2019 and free cash flow per share of CAD 1.65-1.95.
(CAD 1.0 = USD 0.742/EUR 0.663)