Innergex Renewable Energy (INE) Q2 2024 earnings summary

Executive summary

• Q2 2024 generation reached 91% of long-term average, impacted by below-average wind, lower irradiance, and curtailments, but offset by strong hydro in Quebec and Chile and higher wind in the U.S. and Chile.

• Asset availability remained high at 96%, reflecting strong operational discipline.

• Executed minority sale of interests in an 826 MW Texas renewable portfolio, generating US$185.7 million in equity consideration and supporting deleveraging.

• Major construction milestones include commissioning the 35 MW/175 MWh San Andrés BESS project in Chile and advancing Boswell and Hale Kuawehi projects.

• Signed 30-year, CPI-indexed PPAs for 400 MW in Quebec and extended a 25-year PPA for Portneuf hydro, both with Hydro-Québec.

Financial highlights

• Adjusted EBITDA Proportionate was $184 million, down 8% year-over-year due to generation mix and lower production from higher-priced assets.

• Free Cash Flow per share for the trailing twelve months ended June 30, 2024, was $1.35, up from $0.57 a year ago.

• Q2 2024 consolidated revenues and PTCs were $260 million, down 4% from Q2 2023.

• Net loss for Q2 2024 was $23 million, compared to net earnings of $25 million in Q2 2023.

• Payout ratio for trailing twelve months was 40%, down from 127% a year ago.

Outlook and guidance

• Reaffirmed full-year 2024 guidance: Adjusted EBITDA Proportionate of $725–775 million and Free Cash Flow per share of $0.70–0.85.

• CapEx budget for 2024 is fully funded; no material changes to full-year CapEx outlook.

• Production expected at long-term averages with ~95% asset availability.

• Expect more growth in 2025 as new projects come online.