TORONTO, March 17, 2020 (GLOBE NEWSWIRE) -- Northland Power Inc. ("Northland") (TSX: NPI) today is providing an update regarding the installation of the two turbines utilizing mono bucket foundations ("Demonstrator Project") at its Deutsche Bucht offshore wind project. As announced on February 25, 2020, the installation of the Demonstrator Project was paused in the fourth quarter of 2019 following the identification of technical issues. An evaluation of the cause of the technical issues is underway and will not be completed until mid-year. Due to the timing issues associated with the technical review, among other considerations, Northland has elected to permanently forego the installation of the Demonstrator Project.
Deutsche Bucht will encompass the 31 monopile foundations and turbines, which were installed and operational, ahead of schedule, with a total productive capacity of 252 megawatts. The 31 turbines have generating power since the end of September 2019 and contributed pre-completion revenues in sales of $96 million in 2019.
The decision to not proceed with the Demonstrator Project will not impact Northland’s 2020 financial guidance since the contributions from the Demonstrator Project were excluded from the guidance estimates provided. For 2020, management continues to estimate adjusted EBITDA to be in the range of $1.1 billion to $1.2 billion and free cash flow per share to be in the range of $1.70 to $2.05 per share. Deutsche Bucht’s contributions to 2020 adjusted EBITDA is forecasted to be in the range of €145 million to €165 million (previously €155 million to €175 million).
Northland is a global developer, owner and operator of sustainable infrastructure assets that deliver predictable cash flows. Headquartered in Toronto, Canada, Northland was founded in 1987 and has been publicly traded since 1997 on the Toronto Stock Exchange (TSX: NPI).
Northland owns or has an economic interest in 2,429 MW (net 2,014 MW) of operating generating capacity and 382 MW of generating capacity under construction, representing the Deutsche Bucht offshore wind project in the German North Sea and the La Lucha solar project in Mexico. Northland also owns a 60% equity stake in the 1,044 MW Hai Long projects under development in Taiwan and operates a regulated utility business in Colombia.
Northland's common shares, Series 1, Series 2 and Series 3 preferred shares and Series C convertible debentures trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A, NPI.PR.B, NPI.PR.C and NPI.DB.C, respectively.
NON-IFRS FINANCIAL MEASURES
This press release includes references to Northland’s adjusted earnings before interest, income taxes, depreciation and amortization (“adjusted EBITDA”) and free cash flow and applicable payout ratio and per share amounts, which are not measures prescribed by International Financial Reporting Standards (IFRS). Adjusted EBITDA and free cash flow and applicable payout ratio and per share amounts do not have any standardized meaning under IFRS and, as presented, may not be comparable to similar measures presented by other companies. These measures should not be considered alternatives to net income, 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 adjusted EBITDA and free cash flow and applicable payout ratio and per share amounts are widely accepted financial indicators used by investors to assess the performance of a company and its ability to generate cash through operations. Refer to Northland’s 2019 Annual Report, which can be found on SEDAR at www.sedar.com under Northland’s profile and on northlandpower.com, for an explanation of these terms and for reconciliations to the nearest IFRS measure.
This release contains certain forward-looking statements. Readers are cautioned that such statements may not be appropriate for other purposes. 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,” “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 are based upon certain material factors or assumptions that were applied in developing the forward-looking statements. 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, statements regarding future adjusted EBITDA, free cash flows, the construction, completion, attainment of commercial operations, construction risks, counterparty risks, operational risks, foreign exchange rates, regulatory risks, maritime risks for construction and operation, and the variability of revenues from generating facilities powered by intermittent renewable resources and the other factors described in the “Risks and Uncertainties” section of Northland’s 2019 Annual Report and Annual Information Form, both of which can be found at www.sedar.com under Northland's profile and on Northland’s website 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 date of release. 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:
Wassem Khalil, Senior Director, Investor Relations & Strategy
+1 (647) 288-1019
For media inquiries, please contact
Susan Sperling, Director of Communications
+1 (647) 288-1105