Northland Power Inc. (“
Northland” or the
“
Company”) (TSX: NPI) today reported financial
results for the three months ended March 31, 2022. All dollar
amounts set out herein are in thousands of Canadian dollars, unless
otherwise stated.
“We delivered strong first quarter results
supported by improved performance and higher prices in the offshore
wind segment coupled with stable performance across the remainder
of our operating portfolio leading to a good start for the year,”
said Mike Crawley, Northland’s President and Chief Executive
Officer. “We continue to progress on our strategic priorities with
construction activities at our New York onshore wind projects and
Helios solar project in Colombia progressing as planned. Our team
continues to advance our Hai Long offshore wind project towards
achieving financial close, expected later this year and are
diligently working on securing the necessary agreements and
contracts. We also executed the sale of two of our efficient
natural gas facilities in Ontario, Iroquois Falls and Kingston,
resulting in a 24% reduction in our gas-fired generation capacity.
The sale further supports our efforts to reduce Northland’s carbon
intensity and repatriate capital to fund the growth of our
renewable development projects around the globe.”
First Quarter Highlights
Financial Results
-
Sales increased 13% to $695 million from $613
million in 2021 and Gross profit increased by 16%
to $636 million from $549 million in 2021.
- Adjusted
EBITDA (a non-IFRS measure) increased 17% to $420 million
from $360 million in 2021.
- Adjusted
Free Cash Flow per share (a non-IFRS measure) increased
15% to $0.84 from $0.73 in 2021.
- Free
Cash Flow per share (a non-IFRS measure) increased 17% to
$0.77 from $0.66 in 2021.
- Net
income increased 90% to $288 million from $151 million in
2021.
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 ownership interest.
Summary of Consolidated Results |
|
|
|
(in thousands of
dollars, except per share amounts) |
Three months ended March 31, |
|
|
2022 |
|
|
2021 |
FINANCIALS |
|
|
|
Sales |
$ |
695,054 |
|
$ |
612,766 |
Gross profit |
|
635,764 |
|
|
548,747 |
Operating income |
|
373,707 |
|
|
306,306 |
Net income (loss) |
|
287,580 |
|
|
151,389 |
Adjusted EBITDA (a non-IFRS measure) |
|
420,149 |
|
|
359,804 |
|
|
|
|
Cash provided by operating activities |
|
408,730 |
|
|
408,454 |
Adjusted Free Cash Flow (a non-IFRS measure) |
|
191,985 |
|
|
147,289 |
Free Cash Flow (a non-IFRS measure) |
|
174,375 |
|
|
134,448 |
Cash dividends paid |
|
47,393 |
|
|
39,953 |
Total dividends declared(1) |
$ |
68,496 |
|
$ |
60,740 |
|
|
|
|
Per
Share |
|
|
|
Weighted average number of shares - basic (000s) |
|
227,691 |
|
|
202,388 |
Net income (loss) - basic |
$ |
0.99 |
|
$ |
0.49 |
Adjusted Free Cash Flow - basic (a non-IFRS measure) |
$ |
0.84 |
|
$ |
0.73 |
Free Cash Flow - basic (a non-IFRS measure) |
$ |
0.77 |
|
$ |
0.66 |
Total dividends declared |
$ |
0.30 |
|
$ |
0.30 |
|
|
|
|
ENERGY
VOLUMES |
|
|
|
Electricity production in gigawatt hours
(GWh) |
|
2,923 |
|
|
2,582 |
(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 Environmental, Social and Governance
Advancements:
- Sale of
Efficient Natural Gas Facilities – On April 7, 2022,
Northland completed the sale of its Iroquois Falls and Kingston
efficient natural gas facilities in Ontario, resulting in a 24%
reduction in gas-fired generation capacity. The sale further
supports efforts to reduce Northland’s carbon intensity and
repatriate capital to fund the growth of our renewable development
projects around the globe. The two facilities, with a combined
operating capacity of 230MW, had operated under long-term power
purchase agreements with the provincial system operator, which
expired at the end of 2021 and 2017, respectively.
-
At-The-Market Equity Program Established – On
March 1, 2022, Northland established an at-the-market equity
(“ATM program”) that allows Northland to issue up
to $500 million of common shares from treasury, at Northland’s
discretion. The program provides Northland with an additional
source of financing flexibility to fund its growth initiatives. As
at May 10, 2022, Northland issued a total of 3,844,500 common
shares for gross proceeds of $159 million.
-
Sustainability Report - Northland released its
fifth annual Sustainability Report, titled “Together our Power is
Boundless”, highlighting its 2021 Environmental, Social and
Governance (ESG) achievements. The report is available at
northlandpower.com.
-
Northland Corporate Credit Rating Re-affirmed – In
May 2022, Standard & Poor’s reaffirmed Northland’s corporate
credit rating of BBB (Stable). In addition, Northland’s preferred
share rating was reaffirmed on Standard & Poor’s Canada scale
of BB+.
Renewables Growth:
- Hai Long
Offshore Wind Project Update – Progress continues at
Hai Long in anticipation of achieving financial close later in the
year. The project team continues to work diligently to secure
agreements and contracts, including a corporate offtake agreement,
on the project ahead of financial close. The recent inflationary
and supply chain dynamics coupled with rising interest rates and
volatility in foreign exchange rates have created an environment
that requires close monitoring. As is normal business practice,
Northland continues to monitor and is working diligently to manage
these issues and their potential impacts on the project. The
Company continues to believe that Taiwan is a top tier jurisdiction
for offshore wind, and being a leader in this market developing the
largest project, alongside its partners and establishing supply
chain and strong government relations will benefit the Hai Long
project and the sector over the long term.
- Onshore
Renewable Projects – Construction activities at the two
New York onshore wind projects is progressing as planned with the
projects expected to complete all construction activities in 2022.
The first turbines are expected to be delivered to Bluestone Wind
in June and Ball Hill Wind in August 2022. At Northland’s Helios
solar project in Colombia, construction and energization of the
first phase of the project, encompassing 10MW, is complete.
Construction on the second phase (6MW) has commenced with full
commercial operations expected later in 2022.
- ScotWind
Offshore Wind Project – On January 17, 2022, Northland
announced that it was awarded two offshore wind leases in the Crown
Estate Scotland auction with a total combined capacity of 2,340MW.
The two leases, one fixed foundation (840MW) and one floating
foundation (1,500MW), will extend Northland’s development runway
into the next decade, with commercial operations expected at the
end of 2029/2030 for the fixed and early 2030s for the
floating.
- Nordsee Offshore Wind
Cluster – In January 2022, Northland and its German
partner, RWE Renewables GmbH (RWE), announced the formation of a
1,333MW Nordsee Offshore Wind Cluster partnership encompassing
Nordsee Two (433MW), Nordsee Three (420MW) and Nordsee Delta
(480MW). Northland holds a 49% interest in the new partnership,
with RWE holding 51%. The projects are expected to be developed and
managed on a joint basis by both parties and are expected to
achieve commercial operations between 2026 and 2028.
First Quarter Results Summary
Offshore wind facilities
Electricity production increased 11% or 143GWh
compared to the same quarter of 2021 primarily due to higher wind
resource and fewer uncompensated outages at the German facilities,
partially offset by reduced turbine availability at Nordsee One due
to the RSA replacement campaign.
Sales of $397 million increased 7% or $25
million compared to the same quarter of 2021 primarily due to
higher APX at Gemini and higher production across all facilities.
The continued higher prices in Europe resulted in the APX exceeding
the subsidy top-up for Gemini, allowing it to realize higher
revenues in the quarter. Whereas foreign exchange rate fluctuations
reduced sales by $29 million compared to the same quarter of 2021.
Free Cash Flow is largely hedged and was therefore unaffected. The
final APX income realized for 2022 will depend on average APX
levels over the course of the year.
Adjusted EBITDA of $262 million increased 8% or
$20 million compared to the same quarter of 2021 primarily due to
higher wind resource across all three facilities, higher APX at
Gemini and fewer unpaid curtailments at the German facilities,
partially offset by turbine availability losses at Nordsee One and
foreign exchange rate fluctuations.
An important indicator for the offshore wind
facilities is the 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 March 31, |
2022(1) |
|
2021(1) |
|
HistoricalAverage(2) |
|
HistoricalHigh(2) |
|
HistoricalLow(2) |
|
Electricity production (GWh) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gemini |
722 |
|
668 |
|
704 |
|
826 |
|
629 |
|
Nordsee One |
357 |
|
312 |
|
346 |
|
408 |
|
312 |
|
Deutsche Bucht |
322 |
|
279 |
|
316 |
|
348 |
|
279 |
|
Total |
1,401 |
|
1,259 |
|
|
|
|
|
|
|
(1) Includes GWh
produced and attributed to paid curtailments. |
(2) Represents the
average historical power production for the period since the
commencement of commercial operation of the respective facility
(2017 or Gemini and Nordsee One and 2020 for Deutsche Bucht) and
excludes unpaid curtailments. |
Onshore renewable facilities
Electricity production was 82% or 292GWh higher
than the same quarter of 2021 due to the contribution from the
Spanish portfolio acquired in August 2021.
Sales of $128 million were 140% or $75 million
higher than the same quarter of 2021 primarily due to the
contribution from the Spanish portfolio.
Adjusted EBITDA of $100 million was higher than
the same quarter of 2021. Excluding the contribution from the
Spanish portfolio, production, sales and Adjusted EBITDA in the
first quarter would have been 10%, 4% and 5% higher, respectively,
due to higher wind resource partially offset by heavier snowfall
affecting solar facilities. Refer to Northland’s 2021 Annual Report
for additional information on the Spanish portfolio.
Efficient natural gas facilities
Electricity production decreased 10% or 94GWh
compared to the same quarter of 2021 compared to the same quarter
of 2021 due to the effect of Kirkland Lake operating under the
enhanced dispatch contract (EDC) compared to the
baseload PPA until July 2021.
Sales and Adjusted EBITDA of $101 million and
$56 million, respectively, decreased 16% or $20 million and 27% or
$20 million compared to the same quarter of 2021 largely due to the
expiry of the PPA at Iroquois Falls in December 2021.
Utilities
Sales and Adjusted EBITDA of $65 million and $27
million, respectively, increased 14% or $8 million and 19% or $4
million compared to the same quarter of 2021 largely due to rate
escalations positively affecting EBSA’s performance.
In December 2021, Northland restructured and
upsized EBSA’s long-term, non-recourse financing (the “EBSA
Facility”), resulting in $84 million of incremental cash proceeds
to Northland, net of closing costs. The upfinancing was completed
on the basis of growth in EBSA’s projected EBITDA growth for 2022,
based on increases in the rate base. Net upsizing proceeds, in
excess of EBSA’s expansionary capital expenditures, of $13 million
are included in Free Cash Flow in the first quarter.
Statement of income (loss)
General and administrative
(G&A) costs of $20 million in the first
quarter increased 24% or $4 million compared to the same quarter of
2021 primarily due to higher personnel and other costs in support
of Northland’s global growth.
Development costs of $18 million in the first
quarter increased 30% or $4 million compared to the same quarter of
2021 primarily due to higher costs incurred to advance early- to
mid-stage development projects and overhead costs, including
personnel and other costs to support global growth.
Net finance costs of $82 million in the first
quarter decreased 6% or $5 million compared to the same quarter of
2021 primarily as a result of scheduled repayments on
facility-level loans.
Fair value gain on derivative contracts was $128
million in the first quarter primarily due to net movements in the
fair value of derivatives related to the commodity, interest rates
and foreign exchange contracts.
Foreign exchange loss of $32 million in the
first quarter primarily due to unrealized losses from fluctuations
in the closing foreign exchange rates.
Net income of $288 million in the first quarter
increased 90% or $136 million in the first quarter of 2022 compared
to the same quarter of 2021 primarily as a result of the factors
described above, partly offset by a $48 million higher total tax
expense.
Adjusted EBITDA
|
Three months ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
Net income (loss) |
$ |
287,580 |
|
|
$ |
151,389 |
|
Adjustments: |
|
|
|
Finance costs, net |
|
81,757 |
|
|
|
87,090 |
|
Gemini interest income |
|
3,707 |
|
|
|
3,981 |
|
Share of joint venture project development costs |
|
2,795 |
|
|
|
(755 |
) |
Acquisition costs |
|
481 |
|
|
|
1,619 |
|
Provision for (recovery of) income taxes |
|
100,554 |
|
|
|
52,265 |
|
Depreciation of property, plant and equipment |
|
147,415 |
|
|
|
145,300 |
|
Amortization of contracts and intangible assets |
|
10,058 |
|
|
|
9,940 |
|
Fair value (gain) loss on derivative contracts |
|
(133,445 |
) |
|
|
(54,983 |
) |
Foreign exchange (gain) loss |
|
32,374 |
|
|
|
29,666 |
|
Impairment loss |
|
— |
|
|
|
29,981 |
|
Elimination of non-controlling interests |
|
(100,854 |
) |
|
|
(94,502 |
) |
Finance lease (lessor) |
|
(1,664 |
) |
|
|
(1,855 |
) |
Other adjustments |
|
(10,609 |
) |
|
|
668 |
|
Adjusted EBITDA |
$ |
420,149 |
|
|
$ |
359,804 |
|
Adjusted EBITDA of $420 million in the first
quarter, increased 17% or $60 million compared to the same quarter
of 2021. The significant factors increasing Adjusted EBITDA
include:
- $63 million
contribution from the Spanish portfolio of onshore wind and solar
facilities;
- $14 million
increase in operating results from the German facilities primarily
due to higher wind resource, fewer periods of uncompensated outages
and of negative prices, partially offset by reduced turbine
availability at Nordsee One due to the RSA replacement
campaign;
- $7 million
increase in operating results at Gemini primarily due to higher
wind resource and high APX; and
- $8 million
increase in operating results at EBSA due to rate escalations and
at Canadian wind facilities due to higher wind resource.
The factors partially offsetting the increase in
Adjusted EBITDA include:
- $25 million
decrease in operating results from Iroquois Falls due to the expiry
of its PPA in December 2021; and
- $9 million
increase in G&A costs and growth expenditures to support global
growth.
Adjusted Free Cash Flow and Free Cash Flow
|
Three months ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
Cash provided by operating activities |
$ |
408,730 |
|
|
$ |
408,454 |
|
Adjustments: |
|
|
|
Net change in non-cash working capital balances related to
operations |
|
15,362 |
|
|
|
(15,049 |
) |
Non-expansionary capital expenditures |
|
(12,830 |
) |
|
|
(8,958 |
) |
Restricted funding for major maintenance, debt and decommissioning
reserves |
|
(5,094 |
) |
|
|
(1,533 |
) |
Interest paid |
|
(34,690 |
) |
|
|
(49,892 |
) |
Scheduled principal repayments on facility debt |
|
(40,441 |
) |
|
|
(33,810 |
) |
Funds set aside (utilized) for scheduled principal repayments |
|
(142,078 |
) |
|
|
(131,669 |
) |
Preferred share dividends |
|
(2,700 |
) |
|
|
(2,699 |
) |
Consolidation of non-controlling interests |
|
(46,448 |
) |
|
|
(41,740 |
) |
Investment income(1) |
|
4,176 |
|
|
|
5,165 |
|
Proceeds under NER300 and warranty settlement at Nordsee One |
|
17,712 |
|
|
|
7,766 |
|
Other(2) |
|
12,676 |
|
|
|
(1,587 |
) |
Free Cash Flow |
$ |
174,375 |
|
|
$ |
134,448 |
|
Add back: Growth expenditures |
|
17,610 |
|
|
|
12,841 |
|
Adjusted Free Cash Flow |
$ |
191,985 |
|
|
$ |
147,289 |
|
(1) Investment
income primarily includes Gemini interest income. |
(2) Other includes
adjustments for Nordsee One interest on shareholder loans, equity
accounting, acquisition costs and non-cash expenses adjusted in
working capital excluded from Free Cash Flow in the period. |
Adjusted Free Cash Flow of $192 million for the
three months ended March 31, 2022, was 30% or $45 million higher
than the same quarter of 2021.
The significant factors increasing Adjusted Free
Cash Flow were:
- $36 million
contribution from the Spanish portfolio of onshore wind and solar
facilities;
- $13 million
increase primarily from the net proceeds of the EBSA
refinancing;
- $6 million
decrease in net interest costs as a result of scheduled principal
repayments on facility-level loans; and
- $7 million
decrease due to timing of capital expenditures and of major
maintenance performed at operating facilities compared to last
year.
The factors partially offsetting the increase in
Adjusted Free Cash Flow were:
- $18 million
increase in current taxes primarily at the offshore wind facilities
as a result of better operating results; and
- $3 million
decrease in overall contribution across all facilities, excluding
the Spanish portfolio, as described in Adjusted EBITDA, primarily
due to the expiry of the Iroquois Falls PPA and higher project
development and corporate costs to support growth.
Free Cash Flow, which includes all
non-capitalized growth expenditures, amounted to $174 million for
the three months ended March 31, 2022, and was 30% or $40 million
higher than the same quarter of 2021. The significant factors
increasing Free Cash Flow were as described for Adjusted Free Cash
Flow but include the $5 million increase in growth
expenditures.
The following table reconciles Adjusted EBITDA
to Adjusted Free Cash Flow.
|
Three months ended March 31, |
|
|
|
2022 |
|
|
|
2021 |
|
Adjusted EBITDA |
$ |
420,149 |
|
|
$ |
359,804 |
|
Adjustments: |
|
|
|
Scheduled debt repayments |
|
(147,701 |
) |
|
|
(128,629 |
) |
Interest expense |
|
(61,281 |
) |
|
|
(61,663 |
) |
Income taxes paid |
|
(56,384 |
) |
|
|
(30,639 |
) |
Non-expansionary capital expenditure |
|
(10,919 |
) |
|
|
(8,599 |
) |
Utilization (funding) of maintenance and decommissioning
reserves |
|
(4,656 |
) |
|
|
(1,073 |
) |
Lease payments, including principal and interest |
|
(3,007 |
) |
|
|
(2,225 |
) |
Preferred dividends |
|
(2,700 |
) |
|
|
(2,699 |
) |
Foreign exchange hedge gain (loss) |
|
15,162 |
|
|
|
2,444 |
|
Proceeds under NER300 and warranty settlement at Nordsee One |
|
15,055 |
|
|
|
6,601 |
|
EBSA Refinancing proceeds, net of growth capital expenditures |
|
12,824 |
|
|
|
— |
|
Other(1) |
|
(2,167 |
) |
|
|
1,126 |
|
Free Cash Flow |
$ |
174,375 |
|
|
$ |
134,448 |
|
Add Back: Growth expenditures |
|
17,610 |
|
|
|
12,841 |
|
Adjusted Free Cash Flow |
$ |
191,985 |
|
|
$ |
147,289 |
|
(1) Other includes
Gemini interest income and interest received on third-party loans
to partners. |
Refer to Northland’s 2021 Annual Report for
additional information on sources of liquidity in addition to
Adjusted Free Cash Flow.
Sustainability Report
The 2021 sustainability report provides enhanced
disclosures on Northland’s sustainability strategy including
reporting additional metrics and information related to supply
chain (including contractor health & safety, scope 3 greenhouse
gas emissions and supplier management) as well as additional detail
on human capital and talent development and engagement. The report
has been prepared in accordance with the Global Reporting
Initiative (GRI) Standards core option and in
alignment with the Sustainability Accounting Standards Board
(SASB) recommendations, and the Taskforce for
Climate-Related Financial Disclosures (TCFD). This
year’s report showcases the achievements that Northland has made on
its ESG initiatives including:
- Northland
renewables facilities have helped avoid 2.15 million tonnes of
C0₂e
- 26% reduction in
GHG emissions intensity from generation since 2019
- 24% reduction in
gas-fired generation capacity
- Provided
renewable energy to power over 1.7 million homes with renewable
energy
To read the report in full,
visit northlandpower.com
2022 Financial Outlook
As of May 10, 2022, management’s 2022
financial outlook remains unchanged from prior guidance. Adjusted
EBITDA in 2022 is expected to be in the range of $1.15 billion to
$1.25 billion, Adjusted Free Cash Flow per share in 2022 is
expected to be in the range of $1.65 to $1.85 and Free Cash Flow
per share in 2022 is expected to be in the range of $1.20 to
$1.40.
Northland continues to have sufficient liquidity
available to execute on its growth objectives. As at May 10,
2022, Northland had access to approximately $890 million of
cash and liquidity, comprising $590 million of liquidity
available under a syndicated revolving facility and
$300 million of corporate cash on hand.
First-Quarter Earnings Conference Call
Northland will hold an earnings conference call
on May 11, 2022, to discuss its 2022 first quarter results.
The call will be hosted by Northland’s Senior Management, who will
discuss the financial results and company developments as well as
answering questions from analysts.
Conference call details are as follows:
Wednesday, May 11, 2022, 10:00 a.m. ET
Conference ID: 7157118
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
May 12, 2022.
Northland’s unaudited interim condensed
consolidated financial statements for the three months ended March
31, 2022, and related Management’s Discussion and Analysis can
be found on SEDAR at www.sedar.com under Northland’s profile and on
northlandpower.com.
Annual Meeting of Shareholders
Northland Power will hold its Annual Meeting of
Shareholders (“Meeting”) on Wednesday, May 25, 2022, at 11 a.m. ET.
Northland Power’s Annual meeting of shareholders will be held in a
virtual-only meeting format. Shareholders will not be able to
attend the meeting physically. Shareholders can attend the Meeting
online, vote their shares electronically and submit questions
during the Meeting, by visiting
www.virtualshareholdermeeting.com/NPI2022. Instructions are
available
at northlandpower.com/en/investor-centre/annual-general-meeting.aspx
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,
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 3.0GW (net 2.6GW) of operating capacity. The Company
also has a significant inventory of projects in construction and in
various stages of development encompassing over 14GW 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”),
Adjusted Free Cash Flow, 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.
FORWARD-LOOKING STATEMENTS
This press release contains statements that
constitute forward-looking information within the meaning of
applicable securities laws (“forward-looking statements”)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 Flow and
Adjusted Free Cash Flow, respective per share amounts, dividend
payments and dividend payout ratios, guidance, the timing for the
completion of construction, 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 the 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 include, but are not limited to, risks associated with
sales contracts, Northland’s reliance on the performance of its
offshore wind facilities at Gemini, Nordsee One and Deutsche Bucht
for approximately 50% of its Adjusted EBITDA and Free Cash Flow,
counterparty risks, contractual operating performance, variability
of sales 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, 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 2021 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
May 10, 2022. 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.comnorthlandpower.com
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