Some thoughts on the strategic reviewI read the analysts reports from TD and CIBC and there wasn't much there except for one little nugget in the CIBC report. The paragraph reads in part
"We note recent events showing both ongoing growth and more aggressive competition in the European offshore wind market: (1) Enbridge co-investing with French state-owned power company EDFto potentially develop 3 offshore wind farms at a total cost of $9B; (2) DONG Energy bidding EUR72/MWh for the latest Dutch offshore wind project, Borselle I & II, which is well below expectations, and compares to a contract price of EUR169/MWh for Northland's Gemini project."
So it seems DONG bid for a new project to be constructed with all of the associated construction risks priced at EUR72/MWh. Almost EUR 100/MWh below Northland's projects which are increasingly being de-risked as construction nears completion. It would seem to me that Northland's projects and contracts are made more valuable by the lower valuation being placed on new projects. That being the case it makes a lot of sense to extract some or all of this uplift in value now instead of later. Perhaps a partial interest sale to a pension fund with Northland being paid to run the facility?