Baltic Power, Hai Long and Oneida projects continue to make construction progress TORONTO, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Northland Power Inc. ("Northland" or the "Company") (TSX: NPI) reported today financial results for the three and six months ended June 30, 2024. All dollar amounts set out herein are in thousands of Canadian dollars, unless otherwise stated. "Northland's strong performance in the second quarter has contributed to solid results for the first half of 2024, largely driven by high wind resource at our offshore wind facilities," said John Brace, Northland's Executive Chair. "We also continue to make progress on the construction of our two offshore wind projects in Taiwan and Poland, and our energy storage project in Canada. The execution of these three projects remains our top priority as we focus on their safe and successful delivery. At the same time, we remain active in pursuing various development opportunities in core markets across our 9GW development pipeline. We are also happy to report we completed the sale of our interest in the La Lucha Solar Facility in Mexico." Second Quarter Highlights Financial results for the three months ended June 30, 2024, were higher compared to the same quarter of 2023, primarily due to higher wind resource across all offshore wind facilities, contribution from the New York onshore wind projects that achieved commercial operations in October 2023 and higher revenue from EBSA due to higher market demand, foreign exchange changes and rate escalations. This increase was partially offset by lower revenue generated from the Canadian solar facilities due to lower solar resource, and higher unpaid curtailments related to negative prices and grid outages at our German facilities. Financial Results Sales increased to $529 million from $472 million in 2023. Gross Profit increased to $483 million from $427 million in 2023. Net Income increased to $262 million from $22 million in 2023. Adjusted EBITDA (a non-IFRS measure) increased to $268 million from $232 million in 2023. Adjusted Free Cash Flow per share (a non-IFRS measure) increased to $0.27 from $0.25 in 2023. Free Cash Flow per share (a non-IFRS measure) increased to $0.20 from $0.16 in 2023. The following table presents key IFRS and non-IFRS financial measures and operational results. Sales, gross profit, operating income and net income, as reported under IFRS, include consolidated results of entities not wholly owned by Northland, whereas Northland's non-IFRS financial measures include only Northland's proportionate ownership interest. Summary of Consolidated Results             (in thousands of dollars, except per share amounts) Three months ended June 30,   Six months ended June 30,       2024     2023     2024     2023 FINANCIALS                 Sales $ 528,974   $ 471,547   $ 1,283,894   $ 1,093,268   Gross profit   483,376     427,468     1,180,830     996,371   Operating income   152,025     102,625     498,194     375,167   Net income (loss)   262,356     21,662     411,653     128,799   Net income (loss) attributable to shareholders   246,090     4,341     321,693     74,235   Adjusted EBITDA (a non-IFRS measure) (2)   268,190     232,255     722,056     583,954                     Cash provided by operating activities   170,998     204,278     473,414     501,340   Adjusted Free Cash Flow (a non-IFRS measure) (2)   68,594     62,703     294,325     242,773   Free Cash Flow (a non-IFRS measure) (2)   51,389     41,289     268,796     195,981   Cash dividends paid   49,836     51,148     100,994     101,195   Total dividends declared (1) $ 77,061   $ 75,749   $ 153,760   $ 151,065                   Per Share                 Weighted average number of shares — basic and diluted (000s)   256,659     252,356     256,070     251,579   Net income (loss) attributable to common shareholders — basic and diluted $ 0.95   $ 0.01   $ 1.24   $ 0.28   Adjusted Free Cash Flow — basic (a non-IFRS measure) (2) $ 0.27   $ 0.25   $ 1.15   $ 0.96   Free Cash Flow — basic (a non-IFRS measure) (2) $ 0.20   $ 0.16   $ 1.05   $ 0.78   Total dividends declared $ 0.30   $ 0.30   $ 0.60   $ 0.60                   ENERGY VOLUMES                 Electricity production in gigawatt hours (GWh)   2,563     2,024     6,030     4,855 (1) Represents total dividends paid to common shareholders, including dividends in cash or in shares under Northland's dividend reinvestment plan. (2) See Forward-Looking Statements and Non-IFRS Financial Measures below. Second Quarter Results Summary Offshore wind facilities Electricity production for the three months ended June 30, 2024, increased by 14% or 111GWh compared to the same quarter of 2023. This was primarily due to a higher wind resource across all offshore wind facilities, partially offset by higher unpaid curtailments related to negative prices and grid outages at our German facilities. Sales of $241 million for the three months ended June 30, 2024, increased 9% or $20 million, compared to the same quarter of 2023, primarily due to higher production across all offshore wind facilities by $28 million, partially offset by a $5 million P&I factor adjustment and $3 million related to various other items. Adjusted EBITDA of $131 million for the three months ended June 30, 2024, increased 8% or $10 million compared to the same quarter of 2023, due to the same factors as noted above. An important indicator for performance of offshore wind facilities is the current and historical average power production of the facility. The following tables summarize actual electricity production and the historical average, high and low, for the applicable operating periods of each offshore facility: Three months ended June 30, 2024 (1)   2023 (1)   Historical Average (2)   Historical High (2)   Historical Low (2) Electricity production (GWh)                                       Gemini 498   433   446   498   385 Nordsee One 207   188   190   220   150 Deutsche Bucht 188   160   165   188   141 Total 893   781             (1) Includes GWh produced and attributed to paid curtailments. (2) Represents the historical power production since the commencement of commercial operation of the respective facility (2017 for Gemini and Nordsee One and 2020 for Deutsche Bucht) and excludes unpaid curtailments. In June 2024, one of Gemini's two export cables was damaged and taken out of service. The subsea repair of the cable has commenced and completion is expected in the third quarter. Gemini's production continued via the second export cable. This event occurred during the lower production season and is expected to have an immaterial impact, net of the anticipated insurance proceeds, to Northland's full year results. Onshore renewable facilities Electricity production was 26% or 136GWh higher than the same quarter of 2023, primarily due to the contribution from the New York onshore wind projects that achieved commercial operations in October 2023, and higher wind and solar resource at the Spanish onshore renewable facilities, partially offset by lower wind and solar resource at the Canadian onshore renewable facilities. Sales of $114 million were 17% or $16 million higher than the same quarter of 2023, primarily due to the contribution from the New York onshore wind projects and higher revenue from the Spanish portfolio. Please refer to the MD&A for a further breakdown of Spanish portfolio revenue by component. Adjusted EBITDA of $78 million was 18% or $12 million higher than the same quarter of 2023, due to the same factors as above. Natural gas facilities Electricity production increased 26% or 186GWh compared to the same quarter of 2023, mainly due to higher market demand for dispatchable power. Sales of $76 million for the three months ended June 30, 2024, were largely in line with the same quarter of 2023. Adjusted EBITDA of $50 million for the three months ended June 30, 2024, was largely in line with the same quarter of 2023. Utility Sales of $91 million for the three months ended June 30, 2024, increased 24% or $18 million compared to the same quarter of 2023, primarily due to the higher market demand, rate escalations and foreign exchange gains as a result of the strengthening of the Colombian peso. Adjusted EBITDA of $40 million for the three months ended June 30, 2024, increased 34% or $10 million compared to the same quarter of 2023, primarily due to the same factors as above. Consolidated statement of income (loss) General and administrative ("G&A") costs of $25 million in the second quarter decreased $6 million compared to the same quarter of 2023, primarily due to lower payroll costs and non-recurring expenditures. Development costs of $17 million decreased $11 million compared to the same quarter of 2023, primarily due to focused spending on development activities and timing of the expenditures. Net finance costs of $98 million in the second quarter increased $16 million compared to the same quarter of 2023, primarily due to the issuance of the Green Subordinated Notes ("Green Notes") in June 2023, partially offset by scheduled repayments on facility-level loans. Fair value gain on financial instruments was $82 million, primarily due to net movement in the fair value of derivatives related to interest rate and foreign exchange contracts. Foreign exchange loss of $6 million in the second quarter was primarily due to unrealized loss from fluctuations in the closing foreign exchange rates. Other income was $35 million higher than the same quarter of 2023, primarily due to the gain on disposal of La Lucha solar facility, partially offset by lower gains associated with the sale of two offshore wind assets in Europe in 2023. Net income of $262 million in the second quarter of 2024 compared to net income of $22 million in the same quarter of 2023, was primarily as a result of the factors described above. Adjusted EBITDA The following table reconciles net income (loss) to Adjusted EBITDA:   Three months ended June 30,   Six months ended June 30,     2024       2023       2024       2023   Net income (loss) $ 262,356     $ 21,662     $ 411,653     $ 128,799