Post by
incomedreamer11 on Aug 04, 2021 2:33pm
TD comments
Lower-than-expected EBITDA and PTC contributions from the company's equity-accounted projects drove the variance between our estimate and the actual result.
The company reached an agreement to settle the amounts that remained unpaid by the Phoebe solar facility (US$24.4 million) following the February weather event in Texas.
Management noted it remains focused on pursuing organic development and acquisitions, to meet its strategic objectives and lower Innergex's payout ratio.
Adjusted proportionate EBITDA was modestly below our estimate (4% negative variance). Consolidated Q2 generation was 6% below LTA but was consistent with our forecast (we underestimated LTA for recent acquisitions).
EBITDA margins and price realizations were both slightly better than our expectations.
Innergex's 12-month trailing dividend payout ratio was 136% of normalized free cash flow, excluding the Q1/21 Texas storm impact (150% in 2020).
The transmission line for the Kwoiek Creek facility (25 MW net) has been damaged by wildfires, resulting in a temporary halt in its operations. The event is expected to be covered by insurance.
Development update. The 200 MW Hillcrest solar facility has begun commercial operation; project capital costs increased 6% due to overruns. The the 226 MW Griffin Trail wind project was completed in late-July 2021.
Innergex announced the acquisition of a 18 MW hydro facility in Chile. The run-of-river facility was acquired for an EV of US$40.5 million, and is expected to generate US$2.1 million of EBITDA annually (implied 19.3x EV/EBITDA).