Boralex (BLX) Q3 2024 earnings summary

Executive summary

• Q3 2024 results were pressured by adverse weather and curtailments, leading to production 14% below anticipated levels and a net loss, but nine-month net earnings rose 32% year-over-year.

• Major project milestones included construction progress at Apuiat (Québec), Limekiln (Scotland), Hagersville and Tilbury storage (Ontario), and Des Neiges Sud and Oxford projects.

• Acquisition of the 50 MW Sallachy wind project in Scotland strengthened the UK portfolio.

• Two long-term renewable energy PPAs were signed in France with Nestlé and Saint-Gobain.

• SBTi validation of greenhouse gas reduction targets reinforced the commitment to carbon neutrality by 2050.

Financial highlights

• Q3-2024 combined EBITDA was CAD 109 million ($87 million EBITDA(A)), down CAD 4 million ($3 million) year-over-year; AFFO/discretionary cash flow was CAD 16 million, down CAD 7 million.

• Revenues from energy sales fell 10–12% to $150–175 million, with European wind revenues down 22%.

• Net debt-to-market capitalization ratio stood at 43% as of September 30, 2024.

• Available cash and undrawn financing totaled $608 million.

• Net cash outflows from operations were $184 million in Q3-2024.

Outlook and guidance

• Apuiat and Limekiln projects are on track for commissioning by year-end; Hagersville and Tilbury storage projects expected by end of 2025; Oxford and Des Neiges Sud scheduled for 2026.

• 2025 target of 4,400 MW installed capacity remains on track, with 3,133 MW in operation and 867 MW in the growth path.

• Strategic plan for 2025 focuses on growth, diversification, customer focus, and optimization, with a 7.2 GW project pipeline.

• Dividend of $0.1650 per share declared for Q3-2024.