Northland Power Inc. (“
Northland” or the
“
Company”) (TSX: NPI) today reported financial
results for three and nine months ended September 30, 2021. All
dollar amounts set out herein are in thousands of Canadian dollars,
unless otherwise stated.
“Abnormally low wind conditions in the North Sea
persisted in the third quarter, resulting in reduced financial
contribution from our three large offshore wind facilities.
However, consistent with last quarter, we remain on track to meet
the low end of our 2021 financial guidance, largely due to the
performance of our onshore portfolio as well as the increasing
diversification within our operating portfolio, thanks to our
Colombian utility, EBSA and the recently acquired solar and wind
portfolio in Spain, both of which are performing well,” said Mike
Crawley, Northland’s President and Chief Executive Officer.
“Strategically, we continue to advance to
position ourselves for strong growth this decade with a portfolio
of identified projects that will add 4 to 5 GW of renewable energy
capacity. Specifically, we exercised our right to match the winning
bid and secure the lease for our 433MW German Nordsee Two offshore
wind project, established our Spanish growth platform by closing
the acquisition of 551MWs of operating wind and solar assets,
successfully won a joint-bid for 130MW of solar projects in an
offtake auction in Colombia and achieved key milestones on two of
our prospective Japanese offshore wind projects. Finally, we
continued to strengthen Northland’s financial position, available
capital and liquidity, while at the same time advancing our ESG
objectives.”
Third Quarter Highlights
Financial Results
-
Sales decreased 8% to $432 million from $471
million in 2020 and gross profit decreased 8% to
$383 million from $418 million.
- Adjusted
EBITDA (a non-IFRS measure) decreased 17% to $211 million
from $254 million in 2020.
- Free
Cash Flow per share (a non-IFRS measure) decreased 83% to
$0.05 from $0.30 in 2020.
- Adjusted
Free Cash Flow per share (a non-IFRS measure) decreased
61% to $0.15 from $0.38 in 2020.
- Net
Loss of $5 million from a net income of $109 million in
2020.
- No
change to 2021 Financial Guidance: management continues to
expect Adjusted EBITDA, Free Cash Flow (“FCF”) per
share to be at the low end of their respective original guidance
ranges. For Adjusted Free Cash Flow per share, management continues
to expect a range of $1.60 to $1.70. Refer to the Outlook section
for additional information.
Sales, gross profit and net income, as reported
under IFRS, include consolidated results of entities not
wholly-owned by Northland, whereas non-IFRS financial measures
include Northland’s proportionate interest.
Summary of
Consolidated Results |
|
|
|
|
|
|
(in
thousands of dollars, except per share amounts) |
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
FINANCIALS |
|
|
|
|
|
|
|
|
Sales |
$ |
432,078 |
|
|
$ |
470,867 |
|
|
$ |
1,453,165 |
|
|
$ |
1,567,793 |
|
|
Gross profit |
383,449 |
|
|
418,403 |
|
|
1,299,884 |
|
|
1,422,687 |
|
|
Operating income |
89,018 |
|
|
179,477 |
|
|
513,170 |
|
|
723,169 |
|
|
Net income (loss) |
(4,668 |
) |
|
108,964 |
|
|
140,351 |
|
|
458,260 |
|
|
Adjusted EBITDA (a non-IFRS
measure) |
210,669 |
|
|
254,297 |
|
|
773,356 |
|
|
901,581 |
|
|
|
|
|
|
|
|
|
|
|
Cash provided by operating
activities |
280,397 |
|
|
278,381 |
|
|
1,049,927 |
|
|
1,011,102 |
|
|
Free Cash Flow (a non-IFRS
measure) |
11,068 |
|
|
60,583 |
|
|
151,060 |
|
|
289,494 |
|
|
Adjusted Free Cash Flow (a
non-IFRS measure) |
34,665 |
|
|
76,541 |
|
|
204,354 |
|
|
338,877 |
|
|
Cash dividends paid |
44,728 |
|
|
55,399 |
|
|
128,067 |
|
|
177,266 |
|
|
Total dividends declared
(1) |
67,817 |
|
|
60,150 |
|
|
196,199 |
|
|
184,128 |
|
|
|
|
|
|
|
|
|
|
Per
Share |
|
|
|
|
|
|
|
|
Weighted average number of shares
- basic (000s) |
225,964 |
|
|
201,626 |
|
|
216,264 |
|
|
197,697 |
|
|
Net income (loss) - basic |
$ |
(0.05 |
) |
|
$ |
0.40 |
|
|
$ |
0.28 |
|
|
$ |
1.66 |
|
|
Free Cash Flow - basic (a
non-IFRS measure) |
$ |
0.05 |
|
|
$ |
0.30 |
|
|
$ |
0.70 |
|
|
$ |
1.46 |
|
|
Adjusted Free Cash Flow -
basic (a non-IFRS measure) |
$ |
0.15 |
|
|
$ |
0.38 |
|
|
$ |
0.94 |
|
|
$ |
1.71 |
|
|
Total dividends declared |
$ |
0.30 |
|
|
$ |
0.30 |
|
|
$ |
0.90 |
|
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
ENERGY
VOLUMES |
|
|
|
|
|
|
|
|
Electricity production in gigawatt hours
(GWh) |
1,815 |
|
|
2,034 |
|
|
5,929 |
|
|
6,793 |
|
(1) Represents
total dividends paid to common shareholders including dividends in
cash or in shares under the DRIP. |
Significant Events and Updates
Balance Sheet and ESG
Advancements:
-
Extension of $1.0 Billion Revolving Corporate Credit
Facility and Completion of Sustainability Linked Loan
Overlay – In September 2021, Northland renewed and
extended by two years (from 2024 to 2026) the term of its $1
billion revolving corporate credit facility with a syndicate of
Canadian and international financial institutions and executed
amendments to increase liquidity available to fund growth.
Concurrently, the Company implemented a Sustainability Linked Loan
(SLL) overlay on the credit facility. The
implementation of the SLL is an important milestone for Northland
and aligns with the Company’s Environmental, Social and Governance
(ESG) initiatives and green financing framework
introduced in February 2021. The SLL is based on achieving defined
targets around both increasing renewable generating capacity and
reducing carbon emissions intensity and is expected to provide
Northland with cost savings when the targets are met. The SLL is an
important step in integrating Northland’s ESG performance with its
financing objectives. All margin savings are expected to be used to
fund the Company’s global sustainability initiatives.
- Canadian
Solar Portfolio Debt Restructuring – In the third quarter,
Northland restructured and upsized the senior debt on a number of
its Canadian solar facilities, resulting in one-time cash
distribution to Northland totaling $40 million ($0.18 per share).
This refinancing constitutes green project financing supporting
Northland’s ESG initiatives. To date in 2021, Northland has
received cash distributions amounting to $113 million ($0.50 per
share) from optimizing and upsizing project finance and other debt
structures to further enhance liquidity to fund growth. These cash
distributions are not included in Free Cash Flow or Adjusted Free
Cash Flow.
- Fitch
Rating – In September 2021, Northland received a second
corporate credit rating of BBB (stable) from Fitch Ratings Inc.,
one of the top global rating agencies. This investment-grade rating
aligns with Northland’s existing investment grade rating of BBB
(stable) last affirmed by Standard and Poor’s
(S&P) Global Ratings in March 2021. Fitch’s
rating was converted to a public rating in October 2021.
Renewables Growth:
- Nordsee
Two and Nordsee Three 850MW Offshore Wind Projects –
Following the completion of a competitive lease auction in
September 2021, Northland and its German partner exercised their
step-in rights to match the winning bid in the auction to secure
the lease for Nordsee Two. As a result, Northland and its German
partner will pursue the development of the project including
securing long-term corporate and/or utility offtake agreements as a
result of the winning bid in the auction being a zero bid.
Northland also has similar step-in rights for Nordsee Three, which
is expected to come to auction in 2023. These two potential
offshore wind projects are expected to have a combined grid
capacity of approximately 850MW.
-
Colombian 130MW Solar Projects – Subsequent to the
third quarter, Northland, in partnership with EDF Renewables, a
subsidiary of Électricité de France S.A. (EPA:EDF), successfully
submitted a joint-bid into the renewables auction in Colombia and
were awarded the right to build two solar projects with a total
combined capacity of 130MW. The solar projects will benefit from
Power Purchase Agreements (PPAs) with multiple
energy distribution and commercial entities in Colombia, starting
in 2023 and lasting for 15 years. The PPAs will be denominated in
Colombian pesos and will have annual indexation to the Colombian
Producer Price index (PPI). In addition, the
projects will receive a reliability charge in US dollars, which
will account for approximately 10% of total revenues of the
projects. Northland has a 50 percent interest in the projects with
commercial operations expected in the second half of 2023. These
projects represent further execution on Northland’s growth platform
in Colombia, leveraging its existing position in EBSA to secure and
develop additional renewable projects. These solar projects closely
follow the development of Northland’s 16MW Helios solar project,
which achieved financial close in the second quarter of 2021.
- Japan Offshore
Wind – In September, the Japanese government designated
four new sea areas as “promising areas” for the development of
offshore wind under its Round Three process. Included in these four
areas was Isumi City, Chiba Prefecture, where Northland is
progressing with the development of its Chiba offshore wind
project, in consortium with Shizen Energy and Tokyo Gas.
Additionally, Katagami, Akita Prefecture, where Northland continues
to explore an opportunity through a consortium with Mitsui and
Osaka Gas, was also designated in the promising areas list. The
designation as “promising areas” for these two regions is a key
milestone in the early-stage development processes for these two
projects, that could have a total productive capacity of up to
900MW when complete.
Third Quarter Results Summary
Offshore wind facilities
Electricity production was 13% or 107 GWh lower
than the same quarter of 2020, primarily due to the historically
low wind resource at all three offshore facilities, as well as
reduced turbine availability at Nordsee One due to the rotor shaft
assembly replacement campaign.
Sales of $197 million decreased 23% or $60
million compared to the same quarter of 2020 largely due to similar
factors affecting production and foreign exchange rate
fluctuations.
Adjusted EBITDA of $104 million decreased 31% or
$46 million primarily due to low wind resource in the North Sea
compared to the same quarter last year.
An important indicator for the offshore wind
facilities is historical average of the power production of each
offshore wind facility, where available. The following table
summarizes actual electricity production and the historical
average, high and low for the applicable operating periods of each
offshore facility:
|
Three months ended September 30, |
|
|
2021 (1) |
|
2020 (1) |
|
Historical Average (2) |
|
Historical High |
|
Historical Low |
|
Electricity production (GWh) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gemini |
397 |
|
|
478 |
|
|
448 |
|
|
524 |
|
|
397 |
|
|
Nordsee One |
173 |
|
|
194 |
|
|
196 |
|
|
220 |
|
|
173 |
|
|
Deutsche Bucht |
164 |
|
|
169 |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
Total |
734 |
|
|
841 |
|
|
|
|
|
|
|
|
(1) Includes GWh
produced and attributed to paid curtailments. For Deutsche Bucht,
includes pre-completion production for the first quarter of
2020. |
(2) Represents
the average historical power production for the period 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. |
Sales were also adversely affected by factors
other than wind resource, as summarized in the following table:
|
Three months ended September 30, |
|
2021 |
|
2020 |
Effect of Gemini price hedge (2021) or effect of APX below the SDE
floor (2020) (1) |
$ |
11,400 |
|
|
$ |
9,841 |
|
Lower turbine availability at
Nordsee One (due to RSA campaign) |
2,100 |
|
|
— |
|
Unpaid
curtailment due to negative prices and grid outages in Germany |
4,223 |
|
|
3,879 |
|
(1) Realized APX hedge losses in 2021 are not reported in Sales but
do affect Adjusted EBITDA and Free Cash Flow. Lost revenue in 2020
was a result of the APX of €28/MWh, below the SDE floor of €44/MWh.
For additional details on the SDE floor and APX hedge losses, refer
to disclosures within MD&A. |
Gemini has subsidy agreements with the
Government of the Netherlands which expire in 2031. Under the
agreements, revenue is earned through a combination of annual
average Dutch wholesale market price (APX), a
subsidy top-up (SDE) and a markup to compensate
for annual profile and imbalance (P&I) costs
from the offtaker, which are variable from year to year. The SDE
mechanism tops-up the APX to a set price of €169 per megawatt hour
(MWh) for up to 2,385 gigawatt hours of annual
production (“Gemini Subsidy Cap”). The SDE
mechanism is designed to ensure the full subsidy is received by
Gemini annually. For production beyond the Gemini Subsidy Cap,
revenue is earned at the APX less P&I costs.
The SDE is subject to an annual contractual
floor price (“SDE floor”), thereby exposing Gemini
to market price risk when the APX falls below the annual SDE floor,
approximately €46/MWh for 2021. The APX has been below the SDE
floor for the majority of Gemini’s five years of operation, with
the exception of 2021.
Management has purchased (fixed cost) APX put
options (the preferred hedging instrument) to protect Northland
against 100% of its downside APX exposure in 2021 and 2022 should
the APX fall below the SDE floor price.
Nordsee One Component Issue
At Nordsee One, to date in 2021, ten rotor shaft
assemblies (RSA) have been replaced, minimizing
downtime of the wind turbines during the fourth quarter, when wind
resource tends to be stronger. The replacement of all the RSA at
Nordsee One (the “replacement campaign”) will resume in the second
quarter of 2022 and management expects to complete the replacement
of the remaining 44 RSA in 2022 and 2023, as parts continue to
become available and weather conditions allow.
In some cases, Nordsee One may need to curtail
the performance of turbines to extend their life until replacement
of the RSA, which would affect production and may lead to lost
revenues in 2022 and 2023. This issue is not expected at Gemini or
Deutsche Bucht, which utilize different turbines. For the nine
months ended September 30, 2021, Northland experienced €4 million
($6 million at Northland’s share) of lost revenues pertaining to
curtailment of turbines under this replacement campaign.
The ten RSA were replaced at a cost of €13
million ($16 million at Northland’s share) and the total cost to
replace all 54 RSA is now expected to be slightly lower than
estimated last quarter, and within a range of €50 million and €60
million ($65 million and $75 million at Northland’s share). The
costs are expected to be almost fully covered by the warranty bond
settlement received in 2020 relating to outstanding warranty
obligations of Nordsee One’s turbine manufacturer upon its
insolvency.
Efficient natural gas facilities
Electricity production decreased 20% or 179 GWh
compared to the same quarter of 2020 due to Kirkland Lake operating
under the enhanced dispatch contract commencing in the third
quarter of 2021, compared to the baseload PPA in 2020, as well as a
planned major maintenance outage in the third quarter at another
facility.
Sales for the three months ended September 30,
2021, increased 7% or $6 million compared to the same quarter of
2020 largely due to higher production at one facility and annual
rate escalations at multiple facilities. Adjusted EBITDA of $64
million increased 6% or $4 million compared to the same quarter of
2020 largely due to the same factors affecting sales.
Onshore renewable facilities
Electricity production was 23% or 66 GWh higher
than the same quarter of 2020 due to the recent Spanish
acquisition, partially offset by lower solar and wind resources at
the Canadian facilities.
Sales of $74 million were 40% or $21 million
higher than the same quarter of 2020 primarily due to higher
electricity production. Adjusted EBITDA of $53 million was also
higher than the same quarter of 2020.
Utilities
Sales of $56 million for the three months ended
September 30, 2021, were in line with the same quarter of 2020.
Adjusted EBITDA of $23 million increased 4% or $1 million compared
to the same quarter of 2020 largely due to certain optimization of
operations.
Statement of income (loss)
G&A costs of $15 million increased 18% or $2
million compared to the same quarter of 2020 due to higher
personnel and other costs in support of Northland’s global
growth.
Development costs of $23 million increased 46%
or $7 million compared to the same quarter of 2020 primarily due to
the timing of development activities.
Net finance costs of $80 million decreased 10%
or $9 million compared to the same quarter of 2020 primarily as a
result of scheduled repayments on facility-level loans and
repayment of borrowings on the corporate revolving facility as a
result of the equity offering in April 2021.
Fair value gain on derivative contracts was $34
million compared to a $15 million gain in the same quarter of 2020
primarily due to net movement in the fair value of derivatives
related to the APX, interest rates and foreign exchange
contracts.
Foreign exchange loss of $6 million is primarily
due to unrealized losses from fluctuations in the closing foreign
exchange rates.
Net loss of $5 million decreased 104% or $114
million in the third quarter of 2021 compared to the same quarter
of 2020 primarily as a result of the factors described above as
well as accelerated amortization expense on Iroquois Falls’
property, plant and equipment due to the expiry of its PPA in
December 2021 combined with an $8 million higher total tax
expense.
Adjusted EBITDA
Adjusted EBITDA of $211 million for the three
months ended September 30, 2021, decreased 17% or $44 million
compared to the same quarter of 2020. The significant factors
decreasing Adjusted EBITDA include:
- $37 million
decrease in operating results at Gemini primarily due to the lower
wind resource and APX hedge losses realized;
- $10 million
decrease in operating results at Nordsee One primarily due to lower
wind resource and turbine availability compared to the same period
of 2020; and
- $15 million
increase in corporate costs primarily driven by an increasing level
of project development activities and associated corporate
activities to support growth.
The factor partially offsetting the decrease in
Adjusted EBITDA was $19 million contribution from the recent
acquisition of the portfolio of solar and wind facilities in Spain,
which closed on August 11, 2021.
Free Cash Flow
Free Cash Flow of $11 million for the three
months ended September 30, 2021, was 82% or $50 million lower than
the same quarter of 2020. The significant factor decreasing Free
Cash Flow was the $63 million decrease in overall earnings across
all facilities, as described above, but primarily due to lower wind
resource at the offshore wind facilities.
The factors partially offsetting the decrease in
Free Cash Flow was a $3 million contribution, net of debt payments,
from the recent acquisition of the portfolio of solar and wind
facilities in Spain and an $8 million decrease in current tax
expense primarily due to lower earnings from the offshore wind
facilities.
Adjusted Free Cash Flow, which excludes growth
expenditures, amounted to $35 million for the three months ended
September 30, 2021, and was 55% or $42 million lower than the same
quarter of 2020. The significant factors decreasing Adjusted Free
Cash Flow were as described for Free Cash Flow.
Refer to Northland’s MD&A for the Third
Quarter of 2021 for additional information on sources of liquidity
in addition to Adjusted Free Cash Flow.
Outlook
The offshore wind resources experienced in the
first nine months of the year is trending well below the historical
average across the three offshore wind facilities. Despite the
weakness in the offshore wind resources experienced year-to-date,
management remains on track to achieve the low end of its 2021
financial guidance in large part, due to the efforts to diversify
Northland’s operating portfolio through recent acquisitions, as
well as the continued strong financial performance of Northland’s
Canadian portfolio and EBSA. EBSA’s Adjusted EBITDA and Free Cash
Flow are benefiting from the current inflationary environment in
Colombia that is resulting in indexed escalations within its
regulated framework. In addition, the financial performance of the
recently acquired portfolio of solar and wind facilities in Spain,
is expected to lessen the relative financial impact from the
weakness in the North Sea offshore wind resource.
For Adjusted EBITDA and Free Cash Flow per
share, management continues to expect full year results to be at
the low end of the guidance range released in February 2021, of
$1.1 to $1.2 billion and $1.30 to $1.50 per share, respectively,
unchanged from last quarter. For Adjusted Free Cash Flow per share,
management continues to expect a range of $1.60 to $1.70 as
disclosed last quarter (formerly $1.80 to $2.00 in February
2021).
Management believes the Company continues to
have sufficient liquidity available to execute on its growth
objectives. As at September 30, 2021, Northland had access to $824
million of cash and liquidity, comprising $784 million of liquidity
available under a syndicated revolving facility and $40 million of
corporate cash on hand.
Third-Quarter Earnings Conference Call
Northland will hold an earnings conference call
on November 11, 2021, to discuss its 2021 third quarter
results. The call will be hosted by Mike Crawley, Northland’s
President and Chief Executive Officer, and Pauline Alimchandani,
Northland’s Chief Financial Officer, who will discuss the financial
results and company developments before opening the call to
questions from analysts.
Conference call details are as follows:
Thursday, November 11, 2021, 10:00 a.m. ET
Conference ID: 7569409
Toll free (North America): (833) 693-0550
Toll free (International): (661) 407-1589
The call will also be broadcast live on the
internet, in listen-only mode and may be accessed on
northlandpower.com. For those unable to attend the live call, an
audio recording will be available on northlandpower.com on November
12, 2021.
Northland’s unaudited interim condensed
consolidated financial statements for the three months ended
September 30, 2021, and related Management’s Discussion and
Analysis can be found on SEDAR at www.sedar.com under Northland’s
profile and on northlandpower.com.
ABOUT NORTHLAND POWER
Northland Power is a global power producer
dedicated to helping the clean energy transition by producing
electricity from clean renewable resources. Founded in 1987,
Northland has a long history of developing, building, owning and
operating clean and green power infrastructure assets and is a
global leader in offshore wind. In addition, Northland owns and
manages a diversified generation mix including onshore renewables
and efficient natural gas energy, as well as supplying energy
through a regulated utility.
Headquartered in Toronto, Canada, with global
offices in eight countries, Northland owns or has an economic
interest in 3.2 GW (net 2.8 GW) of operating generating capacity
and a significant inventory of early to mid-stage development
opportunities encompassing approximately 4 to 5 GW of potential
capacity.
Publicly traded since 1997, Northland's common
shares, Series 1, Series 2 and Series 3 preferred shares trade on
the Toronto Stock Exchange under the symbols NPI, NPI.PR.A,
NPI.PR.B and NPI.PR.C, respectively.
NON-IFRS FINANCIAL MEASURES
This press release includes references to the
Company’s adjusted earnings before interest, income taxes,
depreciation and amortization (“Adjusted
EBITDA”), Free Cash Flow, Adjusted Free Cash Flow
and applicable payout ratios and per share amounts, measures not
prescribed by International Financial Reporting Standards
(IFRS), and therefore do not have any standardized
meaning under IFRS and may not be comparable to similar measures
presented by other companies. Non-IFRS financial measures are
presented at Northland’s share of underlying operations. These
measures should not be considered alternatives to net income
(loss), cash flow from operating activities or other measures of
financial performance calculated in accordance with
IFRS. Rather, these measures are provided to complement IFRS
measures in the analysis of Northland’s results of operations from
management’s perspective. Management believes that Northland’s
non-IFRS financial measures and applicable payout ratio and per
share amounts are widely accepted and understood financial
indicators used by investors and securities analysts to assess the
performance of a company, including its ability to generate cash
through operations. For reconciliations of these non-IFRS financial
measures to their nearest IFRS measure, refer to Section 4.5:
Adjusted EBITDA for a reconciliation of consolidated net income
(loss) under IFRS to reported Adjusted EBITDA and Section 4.6: Free
Cash Flow and Adjusted Free Cash Flow for a reconciliation of cash
provided by operating activities under IFRS to reported Free Cash
Flow and Adjusted Free Cash Flow.
FORWARD-LOOKING STATEMENTS
This press release contains certain
forward-looking statements including certain future oriented
financial information that are provided for the purpose of
presenting information about management’s current expectations and
plans. Readers are cautioned that such statements may not be
appropriate for other purposes. Northland’s actual results could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, the events anticipated
by the forward-looking statements may or may not transpire or
occur. Forward-looking statements include statements that are
predictive in nature, depend upon or refer to future events or
conditions, or include words such as “expects,” “anticipates,”
“plans,” “predicts,” “believes,” “estimates,” “intends,” “targets,”
“projects,” “forecasts” or negative versions thereof and other
similar expressions or future or conditional verbs such as “may,”
“will,” “should,” “would” and “could.” These statements may
include, without limitation, statements regarding future Adjusted
EBITDA, Free Cash Flows (and as adjusted) and per share amounts,
dividend payments and dividend payout ratios, guidance, the timing
for energization, testing and commencement of commercial operations
at La Lucha as well as related costs, the completion of
construction, completion, attainment of commercial operations, the
potential for future production from project pipelines, cost and
output of development projects, litigation claims, plans for
raising capital, and the future operations, business, financial
condition, financial results, priorities, ongoing objectives,
strategies and outlook of Northland and its subsidiaries. These
statements are based upon certain material factors or assumptions
that were applied in developing the forward-looking statements,
including the design specifications of development projects, the
provisions of contracts to which Northland or a subsidiary is a
party, management’s current plans and its perception of historical
trends, current conditions and expected future developments, as
well as other factors that are believed to be appropriate in the
circumstances. Although these forward-looking statements are based
upon management’s current reasonable expectations and assumptions,
they are subject to numerous risks and uncertainties. Some of the
factors that could cause results or events to differ from current
expectations include, but are not limited to, risks associated with
revenue contracts, impact of COVID-19 pandemic, Northland’s
reliance on the performance of its offshore wind facilities at
Gemini, Nordsee One and Deutsche Bucht for approximately 60% of its
Adjusted EBITDA and Free Cash Flow, counterparty risks, contractual
operating performance, variability of revenue from generating
facilities powered by intermittent renewable resources, offshore
wind concentration, natural gas and power market risks, operational
risks, recovery of utility operating costs, Northland’s ability to
resolve issues/delays with the relevant regulatory and/or
government authorities in Mexico, permitting, construction risks,
project development risks, acquisition risks, financing risks,
interest rate and refinancing risks, liquidity risk, credit rating
risk, currency fluctuation risk, variability of cash flow and
potential impact on dividends, taxation, natural events,
environmental risks, health and worker safety risks, market
compliance risk, government regulations and policy risks, utility
rate regulation risks, international activities, reliance on
information technology, labour relations, reputational risk,
insurance risk, risks relating to co-ownership, bribery and
corruption risk, legal contingencies, and the other factors
described in the “Risks Factors” section of Northland’s 2020 Annual
Information Form, which can be found at www.sedar.com under
Northland’s profile and on Northland’s website at
northlandpower.com. Northland’s actual results could differ
materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurances can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur.
The forward-looking statements contained in this
release are based on assumptions that were considered reasonable on
November 10, 2021. Other than as specifically required by law,
Northland undertakes no obligation to update any forward-looking
statements to reflect events or circumstances after such date or to
reflect the occurrence of unanticipated events, whether as a result
of new information, future events or results, or otherwise.
For further information, please
contact:
Mr. Wassem Khalil, Senior Director, Investor
Relations647-288-1019investorrelations@northlandpower.com northlandpower.com
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