2nd qtr results out Second Quarter Highlights:
Financial Results
Sales increased 2% to $344 million from $338 million in the second quarter of 2018 and gross profit increased 2% to $322 million from $315 million.
Adjusted EBITDA (a non-IFRS measure) increased 6% to $194 million from $183 million in the second quarter of 2018.
Free cash flow per share (a non-IFRS measure) decreased 5% to $0.20 from $0.21 in the second quarter of 2018.
Net income increased 10% to $76 million from $69 million in the second quarter of 2018.
Sales, gross profit and net income, as reported under IFRS, include consolidated results of entities not wholly-owned by Northland, whereas the above non-IFRS measures, adjusted EBITDA and free cash flow, only include Northland’s proportionate interest.
Construction and Development Update
La Lucha – 130 MW solar project, Durango, Mexico – In May 2019, Northland announced the final investment decision followed by the commencement of the construction of its 100% owned La Lucha 130 MW solar project in the State of Durango, Mexico, which Northland originated as part of its broader Mexico development strategy. Total capital cost for the project is approximately $190 million with project completion expected in the second half of 2020.
Deutsche Bucht – 269 MW offshore wind project, North Sea, Germany – The construction of Northland’s Deutsche Bucht offshore wind project is progressing according to schedule and is on budget. Installation of the project’s 33 wind turbines began in June 2019, with 25 turbines installed to date. The total estimated project cost remains at approximately €1.4 billion (CAD $2.0 billion) with project completion expected by the end of 2019.
Hai Long – 1,044 MW offshore wind project, Taiwan Strait – Since the execution of a 20-year power purchase agreement (PPA) with Taipower for the Hai Long 2A 300 MW offshore wind project in February 2019, Northland remains engaged in developing Hai Long 2B and Hai Long 3 sub-projects and expects to execute their respective PPAs with Taipower in 2019.
Environmental, Social and Governance
Sustainability Report – In July, Northland released its 2018 Sustainability Report, which provides expanded information on the Company’s environmental, social and governance performance for 2018 as well as a comprehensive overview of its clean and green energy commitments and sustainable business objectives. In 2018, Northland continued to maintain excellent health and safety standards and attained lower greenhouse gas emissions compared to 2017. The full report is available on Northland’s website at northlandpower.com.