Boralex Inc T.BLX

Alternate Symbol(s): BRLXF

Utilities Utilities - Independent Power Producers

Boralex Inc. is a Canada-based renewable energy company. The Company is primarily engaged in the development, construction and operation of renewable energy power facilities. It operates in the production of three types of renewable energy: wind, solar and hydroelectric power, as well as storage, representing an asset base with an installed capacity totaling 3,051 megawatts (MW). It also provides onshore wind power, and it also has facilities in the United States and development projects in the United Kingdom. It is developing a portfolio of over 6.2 GW in wind, solar and storage projects. It holds interests in 50 facilities in North America and 77 facilities in Europe. In addition, the Company has projects under construction or ready-to-build, representing an additional 317 megawatts (MW) of power and a portfolio of secured projects amounting to 654 MW. In addition, the Company acquired a 50% interest in five wind farms in the United States with a total installed capacity of 894 MW.

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Boralex Inc

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Post by retiredcfon Mar 01, 2024 10:24am

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Post# 35909010

RBC

Surprised the stock is down. GLTA

March 1, 2024

Boralex Inc.
First Glance: Strong France wind resources drive Q4/23 beat

TSX: BLX | CAD 29.83 | Sector Perform | Price Target CAD 36.00

Sentiment: Positive

Our Take

Although investors tend to look past quarterly variably in renewable resources, due to the magnitude of the overall beat (+$33 million relative to consensus), we expect the results and development updates that were in line with prior messaging to have a positive impact on the shares of Boralex. On the conference call (11:00 AM ET), we expect investors to focus on updates on the development pipeline, and the outcomes/details of various RFPs, including the 365 MW of wind projects that Boralex was awarded in Hydro-Quebec’s latest process, the Ontario battery storage bid submitted in December 2023, and the recent bid into NYSERDA’s expedited RFP at the end of January 2024.

Details

• Q4/23 results were well ahead of expectations. Boralex's Q4/23 Adjusted EBITDA (combined) of $229 million was higher than our estimate of $186 million and consensus of $196 million. The major variance from our estimate stemmed from higher EBITDA from the wind segment due to very strong wind conditions in France.

Very strong wind conditions in France, while overall generation was only 1% above management's expectations. Management noted that total generation for the quarter was 1% above anticipated generation. On a segmented basis, wind generation in France was 18% above management expectations, North America wind was 10% below expectations, solar in France was 8% below expectations, and North America hydro was 4% above expectations. We expect the average realized price for French wind facilities to be higher than North American wind facilities, leading to a net positive financial impact.
Development progressing as planned. The company indicated that projects within its development/construction pipeline continue to progress as planned. During the quarter, two wind farms totaling 27 MW were commissioned in France and two projects totaling 29 MW in France and a 133 MW project were added to the growth path. Work continues at the 50% owned 200 MW Apuiat project in Quebec and the 106 MW Limekiln wind farm in Scotland (both planned for late 2024 COD). Battery procurement contracts were signed in late 2023 for the 380 MW storage project in Ontario (COD planned for late 2025). 454 MW were also added to the early-stage project pipeline.
Conference call today at 11:00 AM ET