Boralex has reported a 9% increase in EBITDA for the second quarter of 2024, despite a decrease in production.
For the six months period ending June 30, 2024, the company posted increases of 14% (11%) in EBITDA, 23% (21%) in operating income and 41% in net earnings.
EBITDA of US$130m was achieved in Q2-2024, up $US11m from Q2-2023.
This was due to the positive impact of the strategy to optimize electricity selling prices and the contribution of new sites commissioned in France, as well as an increase in the contribution from joint ventures.
Production was down 2% compared to Q2-2023. owing to weather conditions and more extensive curtailments in France during the quarter, Boralex said.
During the report Borlex commissioned a 21MW wind farm and a 13MW solar farm in France.
Turbine assembly under way for its 50% owned 200MW Apuiat wind farm in Quebec (pictured) and the 106MW Limekiln wind farm in Scotland both scheduled for commissioning in late 2024.
Furthermore, construction is scheduled to start in August on the 300MW Hagersville and 80MW Tilbury storage projects in Ontario.
Also on-track is the development of the 400MW Des Neiges Sud project in Quebec, in which Boralex holds a 133MW share.
Boralex president and chief executive Patrick Decostre said: “We are proud of the work done by our teams since the beginning of the year, enabling us to make good progress on our many projects, in particular the construction of the Apuiat project in Quebec and the Limekiln project in Scotland, both slated for commissioning by the end of the year.
“Limekiln was in fact the object of our first-ever Scottish financing, which took place during the quarter.
“We are also poised to start construction in the next few weeks on the Hagersville and Tilbury battery projects in Ontario, followed by the Des Neiges Sud project in Quebec.
“We are very confident about the future of our industry.
“Hydro-Québec’s recent announcements regarding near-term development of 10GW of large-scale projects in Quebec and the forthcoming Ontario and British Columbia requests for proposals are very promising developments.
“The current strong demand for corporate power purchase agreements and tendering processes under way in New York State, the United Kingdom and France are also very positive indications of the growth potential in our target markets.
“The impact of our strategy to optimize electricity selling prices and the commissioning of new farms in France, as well as an increased contribution from our joint ventures, enabled us to increase EBITDA and discretionary cash flows this quarter.
“The vast majority of our indicators for the first six months of fiscal 2024 are positive, with net earnings up more than 41%.
“We are pursuing our efforts to maintain strict financial discipline, as evidenced by our strong balance sheet and over $620m in available cash resources and authorised financing.
“Furthermore, the introduction of the 30% Clean Technology Investment Tax Credit (CT ITC) in Canada puts us in a good position to pursue our growth objectives.
“The tax credit will accelerate overall development of large-scale renewable energy projects in Canada and ensure that our industry is well positioned on the world stage when it comes to development of renewable energy.”