Highlights
Financial results
Significant increase in earnings for the fourth quarter and record results achieved in fiscal 2023 overall
Increase is mainly attributable to strong wind farm performance and the commissioning of assets in France, as well as the integration of the wind farms acquired in the United States in late 2022.
EBITDA(A)2 of $202 million ($229 million on a Combined1 basis)3 for Q4-2023 and $578 million ($675 million) for fiscal 2023, up 28% (32%) and 15% (22%) from the same periods in 2022.
Operating income of $98 million ($119 million) in Q4-2023 and $226 million ($306 million) for fiscal 2023.
Net earnings of $58 million in Q4-2023 and $115 million for fiscal 2023, compared to a net loss of $7 million in Q4-2022 and net earnings of $8 million for fiscal 2022.
Record $179M of discretionary1 cash flows and improved financial flexibility to finance growth
Discretionary cash flows1 of $90 million in Q4-2023 and $179 million in fiscal 2023, up $13 million and $12 million from the same periods in 2022.
Net cash flows related to operating activities of $107 million in Q4-2023 and $496 million in fiscal 2023.
Increase of $100 million in the revolving credit facility and extension of maturity to 2028. Increase of $150 million in the letter of credit facility guaranteed by EDC.
Boralex has $547 million in available cash resources and authorized financing facilities2 as at December 31, 2023, up $155 million from the previous quarter.
Development and construction
Secured, under-construction and ready-to-build projects progressing according to plan
Two wind farms totalling 27 MW commissioned in France and addition to the growth path of two projects totalling 29 MW in France as well as a project of 133 MW in North America.
200 MW Apuiat project in Québec, 50% owned by Boralex: work ongoing, commissioning planned for late 2024.
106 MW Limekiln wind farm in Scotland: work began in October 2023, commissioning planned for late 2024.
380 MW storage projects in Ontario: battery procurement contracts signed in late 2023, commissioning planned for 2025.
454 MW added to early-stage project pipeline
325 MW for a wind project and a storage project in North America.
129 MW for five solar and two wind projects in Europe.
MONTREAL, March 01, 2024 (GLOBE NEWSWIRE) — Boralex Inc. (“Boralex” or the “Company”) (TSX:BLX) is pleased to report a significant increase in earnings in the fourth quarter of 2023 and for fiscal 2023 overall.
“We are very proud to announce 22% growth in our Combined EBITDA and generation of $179M in discretionary cash flows1 for fiscal 2023. In a year punctuated by major challenges for our industry, we have set ourselves apart with record results at different levels and sustainable growth, driven by our agility and discipline. This growth is mainly attributable to the acquisition of wind power assets in the United States and the commissioning of assets in France. The fourth quarter results also reflected good energy availability following maintenance optimization and more favorable wind conditions in France as well as tight cost management overall. I want to thank the Boralex teams for their dedication and for the significant progress achieved this year,” said Patrick Decostre, President and Chief Executive Officer of Boralex.
Commenting on what lies ahead for Boralex, Mr. Decostre added: “In the coming quarters, we will continue with construction of our Apuiat wind project in Quebec and the Limekiln project in Scotland, both major projects slated for commissioning in the last quarter of 2024. Our secured-stage projects, namely the Des Neiges projects in Quebec and our Hagersville and Tilbury projects in Ontario, are progressing according to plan. We are very proud to have recently been awarded two projects totalling 315 MW under Hydro-Québec’s wind power call for tenders, demonstrating both our competitiveness and our ability to work closely with local partners. Finally, in line with our goal of pursuing growth in all our regions of activity, we recently submitted bids for 525 MW of storage in Ontario and 240 MW of solar projects under New York State’s expedited renewable energy solicitation. Given our experience, the strength of our balance sheet and our financial flexibility, we are confident that we can successfully complete these various projects, which are spread over the next several years.”
Boralex also released its 2023 Corporate Social Responsibility (CSR) Report today. Highlights for 2023 include winning an EcoVadis gold medal for the second year in a row, surpassing one million tonnes of CO2 emissions avoided – nearly triple the 2022 figure – and achieving our 32.5% target for women in management positions, originally set for 2025. In addition, the Company has redesigned the “Our commitments” section of its website to ensure maximum transparency and dissemination of clear information on its CSR strategy.
4th quarter highlights
Three-month periods ended December 31
Consolidated
Combined 1
(in millions of Canadian dollars, unless otherwise specified)
2023
2022
Change
2023
2022
Change
$
%
$
%
Power production (GWh)2
1,814
1,619
195
12
2,351
1,814
537
30
Revenues from energy sales and feed-in premium
315
322
(7
)
(2
)
345
344
1
—
Operating income
98
7
91
>100
119
14
105
>100
EBITDA(A)3
202
158
44
28
229
173
56
32
Net earnings (loss)
58
(7
)
65
>100
58
(7
)
65
>100
Net earnings attributable to shareholders of Boralex
37
14
23
>100
37
14
23
>100
Per share – basic and diluted
$
0.36
$
0.14
$
0.22
>100
$
0.36
$
0.14
$
0.22
>100
Net cash flows related to operating activities
107
189
(82
)
(44
)
—
—
—
—
Cash flows from operations1
161
141
20
14
—
—
—
—
Discretionary cash flows1
90
77
13
18
—
—
—
—
In the fourth quarter of 2023, Boralex produced 1,814 GWh (2,351 GWh) of electricity, 12% (30%) more than the 1,619 GWh (1,814 GWh) produced in the same quarter of 2022. The increase on a Consolidated basis is attributable to the commissioning of wind and solar farms and the good performance of comparable wind sites in France. The increase on a Combined basis is primarily due to the integration of the wind farms acquired in the United States in late 2022 as well as from elements contributing to the increase on a Consolidated basis. The diversification of the Corporation’s activities both by region and by technology enabled Boralex to partly compensate for the unfavourable wind conditions in Canada during the quarter. Boralex thus ended the quarter with total production 3% (1%) above anticipated production4.
For the three-month period ended December 31, 2023, revenues from energy sales and feed-in premiums totalled $315 million ($345 million), 2% less (stable in combined) than in the fourth quarter of 2022. EBITDA(A)3 amounted to $202 million ($229 million), up 28% (32%) compared to the fourth quarter of 2022. This growth, mainly attributable to the acquisition of wind assets in the United States, the commissioning and the significant increase in production in France as well as a tight cost management implemented by the Company. Operating income amounted to $98 million ($119 million), which compares to an operating income of $7 million ($14 million) for the same quarter of 2022. The increase is mainly attributable to the increase in EBITDA(A) and the decrease in depreciation. The net learning for the quarter was $58 million, a $65 million improvement compared to the net loss of $7 million for the same quarter of 2022.
1 Combined, Cash Flow from operations and Discretionary Cash Flows are non-GAAP financial measures and do not have a standardized definition under IFRS. Therefore, these measures may not be comparable to similar measures used by other companies. For more details, see the Non-IFRS financial measures and other financial measures section of this press release.
2 Power production includes the production for which Boralex received financial compensation following power generation limitations imposed by its customers since management uses this measure to evaluate the Corporation’s performance. This adjustment facilitates the correlation between power production and revenues from energy sales and feed-in premium
3 EBITDA(A) is a total of sector measures. For more details, see the Non-IFRS financial measures and other financial measures section of this press release.
4 Anticipated production is an additional financial measure, For more details see the Non-IFRS financial measures and other financial measures section of this press
release.
Fiscal year ended December 31
Consolidated
Combined1
(in millions of Canadian dollars, unless otherwise specified)
2023
2022
Change
2023
2022
Change
$
%
$
%
Power production (GWh)2
5,973
5,617
356
6
8,020
6,300
1,720
27
Revenues from energy sales and feed-in premium
994
818
176
21
1,104
893
211
24
Operating income
226