Company Advances on Significant Growth Initiatives in the Quarter, Executes Initial Green Financings and Refines 2021 Financial Guidance due to Lower Performance in the Offshore Wind Facilities

TORONTO, Aug. 11, 2021 (GLOBE NEWSWIRE) -- Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) today reported financial results for three and six months ended June 30, 2021. All dollar amounts set out herein are in thousands of Canadian dollars, unless otherwise stated.

“Our second quarter financial performance was impacted by a lower wind resource in the North Sea, which was trending below the long-term average,” said Mike Crawley, Northland’s President and Chief Executive Officer. “However, these near-term financial impacts do not affect our long-term objectives nor our long-term performance. In the quarter, we continued to execute on the key priorities to further enhance our development portfolio and position ourselves to achieve our long-term growth and diversification targets. We advanced the Baltic Power offshore wind project in Poland, which was awarded a 25-year contract for difference offtake agreement, further increased our presence in Europe with the acquisition of an operating portfolio of onshore wind and solar assets in Spain and achieved financial close at two of the New York onshore wind projects as well as our Helios solar project in Colombia. These milestones bolster our development pipeline and enhance our competitive positioning to enable us to participate in the accelerating build out of renewables globally.”

Second Quarter Highlights

Financial Results

  • Sales decreased 5% to $408 million from $429 million in 2020 and gross profit decreased 5% to $368 million from $386 million.
  • Adjusted EBITDA (a non-IFRS measure) decreased 10% to $203 million from $227 million in 2020.
  • Free Cash Flow per share (a non-IFRS measure) decreased 67% to $0.03 from $0.09 in 2020.
  • Adjusted Free Cash Flow per share (a non-IFRS measure) decreased 47% to $0.10 from $0.19 in 2020.
  • Net Income decreased to a net loss of $6 million from a net income of $74 million in 2020.
  • 2021 Financial Guidance Update management is providing an update to its 2021 guidance and now expects Adjusted EBITDA and Free Cash Flow per share to be at the low end of their respected ranges. For Adjusted Free Cash Flow per share, management is revising the range to $1.60 to $1.70 (formerly $1.80 to $2.00). 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 June 30, Six months ended June 30,
  2021 2020 2021 2020
 Sales$408,321   $429,231  $1,021,087  $1,096,926 
 Gross profit367,688   385,509  916,435  1,004,284 
 Operating income117,846   149,141  424,152  543,692 
 Net income (loss)(6,370)  74,277  145,019  349,296 
 Adjusted EBITDA (a non-IFRS measure)202,883   226,513  562,687  647,284 
 Cash provided by operating activities361,076   365,127  769,530  732,721 
 Free Cash Flow (a non-IFRS measure)5,545   17,448  139,993  228,911 
 Adjusted Free Cash Flow (a non-IFRS measure)22,401   37,881  169,690  262,336 
 Cash dividends paid43,386   59,150  83,339  121,867 
 Total dividends declared (1)67,642   59,819  128,382  123,978 
Per Share       
 Weighted average number of shares - basic (000s)220,182   198,842  211,284  195,711 
 Net income (loss) - basic$(0.08)  $0.26  $0.34  $1.27 
 Free Cash Flow - basic (a non-IFRS measure)$0.03   $0.09  $0.66  $1.17 
 Adjusted Free Cash Flow - basic (a non-IFRS measure)$0.10   $0.19  $0.80  $1.34 
 Total dividends declared$0.30   $0.30  $0.60  $0.60 
 Electricity production in gigawatt hours (GWh)1,515   1,785  4,118  4,759 
(1) Represents total dividends paid to common shareholders including dividends in cash or in shares under the DRIP.

Significant Events and Updates

COVID-19 and Business Update – The COVID-19 pandemic (“COVID-19”) has had significant effects across global economies and sectors, including reduced power demand within the renewable energy sector. Each of Northland’s operating facilities are deemed to be essential infrastructure and, as such, operations have continued uninterrupted to date. Management believes Northland continues to have sufficient liquidity available to limit the impact of COVID-19, while executing on its growth objectives.

Growth Updates: To achieve its long-term growth objectives, Northland established regional development offices to secure certain growth opportunities across the globe. The activity from these offices has generated an active portfolio of projects at various stages of development and construction. The successful achievement of commercial operations of these projects is expected to deliver long-term, sustainable growth in the Company’s Adjusted EBITDA, Free Cash Flow and Adjusted Free Cash Flow. The following provides updates on the progress being made on Northland’s active development portfolio.

  • Spanish Renewables Acquisition – On August 11, 2021, Northland completed its previously announced acquisition of a Spanish operating portfolio of onshore renewable projects (the “Spanish Portfolio”) with a total combined net capacity of 551 MW. The transaction included the acquisition of minority interests not included in the initial announced transaction. The Spanish Portfolio includes 33 operating assets comprised of onshore wind (435 MW), solar photovoltaic (66 MW), and a concentrated solar (50 MW) located throughout Spain. Total cash consideration was €348 million ($522 million) with the assumption of debt totaling €716 million ($1,075 million). The acquisition was funded using proceeds from Northland’s common equity offering completed on April 14, 2021.

    The Spanish Portfolio immediately places Northland as a top ten renewable power operator in Spain and creates a platform for growth in an attractive market for renewables. Northland intends to leverage the acquisition of the Spanish Portfolio to build a platform with asset management, development, and operations and maintenance capabilities that can competitively pursue onshore renewables acquisition and development opportunities across Europe over the next decade.
  • Green Financings Executed Northland introduced its Green Financing Framework in February of this year, to allow the Company and its subsidiaries to issue green bonds, loans (corporate and project level) and other financing instruments for Eligible Green Projects. The focus of the Green Financing initiatives is to support climate change mitigation efforts by developing and investing in renewable energy infrastructure assets that increase green energy production. Northland has successfully executed its first two green financings with its onshore wind projects in New York and Helios solar project in Colombia; the latter being one of the first renewable project financings in the country. Both projects secured construction financings which have been designated as green loans by their respective lenders.
  • New York 320 MW Onshore Wind Project Update – Northland’s Ball Hill and Bluestone onshore wind projects, located in Broome County and Chautauqua County, respectively, of New York State, comprising more than 220 MW of new wind capacity, achieved financial close in the second quarter and secured green financing in the form of a non-recourse project loan, tax equity bridge loan and letters of credit, with a consortium of lenders totaling US$381 million (approximately C$476 million), at a 1.45% interest rate during construction. Northland will fund investment in the two projects from the equity offering in April 2021 and also expects to secure permanent tax equity investments for the two projects ahead of commercial operations in 2022. Construction activities commenced in the second quarter of 2021 for Ball Hill and Bluestone. Northland’s third New York onshore wind project, High Bridge (100 MW), is under active development. The total capital cost for the first two projects is expected to be approximately $0.6 billion. Earlier in the year, all three projects were awarded 20-year indexed REC agreements with the New York State Energy Research and Development Authority as part of renewable energy solicitations.

    The New York projects form part of Northland’s broader strategy for onshore renewable development in the United States, where the Company is targeting a total portfolio of 1 GW and has hired a dedicated local team of people to execute on this strategy. The projects will offer social, economic and environmental benefits to New York State and once complete, are expected to contribute to the State’s green energy production, helping fulfill New York’s clean energy transformation. The electricity generated at full capacity is expected to be capable of powering over 125,000 New York homes. This is equivalent to avoiding over 450,000 metric tons of carbon (CO₂) emissions annually which represents the greenhouse gas emissions from nearly 100,000 passenger vehicles driven over the course of one year.
  • Helios 16 MW Solar Project Update – Subsequent to the quarter, Northland’s 16 MW Helios solar project in Colombia also achieved financial close. The project secured a green loan and with construction already underway, commercial operations is expected in the first quarter of 2022. Helios represents Northland’s first development project in Colombia which capitalizes on EBSA’s grandfathered rights, allowing it to expand into the energy generation market in Colombia, to service the power needs of non-regulated municipal, commercial and industrial (C&I) customers. Helios has secured a 12-year power purchase agreement with EBSA, which, in turn, will secure offtake agreements with non-regulated customers. The total capital cost for Helios is expected to be under $20 million.
  • La Lucha 130 MW Solar Project Update – At La Lucha, the 130 MW solar project in the State of Durango, Mexico, activities relating to the physical construction of the solar facility are complete, however, certain activities relating to the energization of the project continue to be delayed. In order to achieve commercial operations, the facility requires energization followed by testing, which is conducted by CENACE (Independent System Operator) and CFE (Federal Electricity Commission). Due to ongoing administrative delays resulting from the COVID-19 pandemic and other issues that have resulted in a backlog of approvals for renewable projects in Mexico, the energization and testing have been delayed and Northland does not anticipate these activities will be complete prior to the end of 2021. Northland continues to work with Mexican authorities, and other private power producers experiencing similar issues, to achieve energization of the La Lucha project. While timelines remain uncertain, Northland expects commercial operations at La Lucha to commence in early 2022. Efforts to secure commercial offtake and project financing are expected to be finalized only after commercial operations. As a result of the aforementioned delays, total capital costs for the project are expected to be around $200 million, up from $190 million originally.
  • Baltic Power, Polish Offshore Wind Project Update – In June 2021, the Baltic Power project, with a potential for up to 1,200 MW of operating capacity and in which Northland has 49% interest, secured a 25-year Contract for Differences (“CfD”) from Poland’s Energy Regulatory Office under the Polish Offshore Wind Act. Under the 25-year contract, the project is guaranteed a price of PLN 319.60 per MWh, which is adjusted to annual indexation by Poland’s annual average consumer price index. The CfD is subject to review and final approval from Polish authorities and the European Commission. Upon successful achievement of all necessary approvals, construction of Baltic Power is expected to commence in 2023 following financial close, with commercial operations anticipated in 2026.
  • Hai Long 1,044 MW Offshore Wind Project Update – In July 2021, Hai Long received an amendment to the project’s Environmental Impact Assessment (“EIA”) from Taiwan’s Environmental Protection Agency to accommodate a larger, 14 MW turbine with longer blade lengths. Receipt of the EIA amendment allows Hai Long to complete further fieldwork to improve wind generation yields. In April 2021, Hai Long received confirmation from the Taiwan Bureau of Energy that Hai Long 2A has secured approval for the Industrial Relevance Proposal, which sets out Northland’s commitments to local supply chain and procurement, marking the achievement of a significant milestone. The project continues to progress well with financial close expected in 2022.
  • Nordsee 2 and Nordsee 3 Offshore Wind Projects – In 2014, when Northland acquired its interest in Nordsee One, it also acquired an 85% interest in two early-stage offshore wind development projects, Nordsee Two (“N2”) and Nordsee Three (“N3”). As part of the agreement to relinquish these sites to the German government, the relevant project companies, both subsidiaries of Northland, were allocated step-in rights for upcoming offshore wind site auctions. Northland is preparing to exercise these step-in rights with the first auction for N2 expected later this year. These two potential offshore wind projects are expected to have a combined grid capacity of approximately 850 MW.

Second Quarter Results Summary

The decrease in the second quarter financial performance relative to the prior year primarily resulted from lower production in the offshore wind segment and a planned outage at one of Northland’s larger efficient natural gas facilities. Offshore wind facilities are subject to seasonality, and accordingly, tend to produce more electricity during winter due to denser air and higher winds compared to summer, the effect of which is reflected in the respective fiscal quarter’s results. While the second quarter is typically a weaker quarter for offshore wind, the results for this quarter across all three facilities was below those in the second quarter in 2020 and well below the long-term average, resulting in lower Adjusted EBITDA, Free Cash Flow and Adjusted Free Cash Flow. In addition, the second quarter results were also affected by the scheduled outage at North Battleford for approximately five weeks to perform scheduled major maintenance work. Such work is typically performed every eight years to ensure ongoing optimal performance and safety of a facility and was reflected in 2021 financial guidance.

Offshore wind facilities

A key performance indicator for the offshore wind facilities is historical long-term average (LTA), where available, of the power production of each offshore wind facility. The following table summarizes actual electricity production and the LTA:

 Three months ended June 30, Six Months Ended June 30,
 2021 (1) 2020 (1) LTA (2) 2021 (1) 2020 (1) LTA (2)
Electricity production (GWh)           
Gemini368  406  436  1,057  1,232  1,160 
Nordsee One150  164  186  461  572  530 
Deutsche Bucht165  141  153  444  490  467 
Total683  711  775  1,962  2,294  2,157 
(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.

Electricity production was 4% or 28 GWh lower than the same quarter of 2020, primarily due to an unusually low wind resource at all three offshore facilities, partially offset by relatively higher production at the German facilities due to the improved grid availability and fewer periods of negative prices compared to 2020.

Sales of $205 million decreased 5% or $10 million compared to the same quarter of 2020 largely due to foreign exchange rate fluctuations, with lower production at Gemini and Nordsee One, partially offset by fewer periods of uncompensated outages and of negative prices in Germany, as shown below.

Operating income and Adjusted EBITDA of $312 million and $355 million, respectively, decreased 23% or $95 million and 17% or $75 million primarily due to low wind resource in the North Sea compared to the same quarter last year.

The following table summarizes Northland’s share of lost revenues from factors other than the low wind resource:

 Three months ended June 30, Six months ended June 30,
 2021 2020 2021 2020
Effect of Gemini price hedge (2021) or effect of APX below the SDE floor (2020) (1)7,622  $2,379  12,043  $12,163 
Lower turbine availability at Nordsee One3,126    3,645   
Unpaid curtailment due to negative prices in Germany4,418  5,567  $6,263  $20,051 
Unpaid curtailment due to grid outages in Germany5,253  12,695  $7,263  $12,695 
(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, refer to disclosures within MD&A.

Gemini’s revenue arrangement includes a mechanism that tops up the average Dutch wholesale market price for the year (the “APX”) to a fixed contractual rate per megawatt hour (MWh), though subject to a floor price (“SDE floor”) of approximately €44/MWh. The SDE floor exposes Gemini to some market price risk if the APX falls below the SDE floor. The APX averaged below the SDE Floor for four of the facility’s five years of operation.

Gemini APX Hedges

As previously reported in the first quarter, a COVID-19-induced 3-year hedging program implemented in the second quarter of 2020 to mitigate against potential revenue losses from further sustained APX price erosion was cancelled in the second quarter of 2021, following significant recovery of the APX price as economic activity rebounded, with the earlier than anticipated success of COVID-19 vaccines among other factors. As a result, in May 2021, Northland entered into offsetting financial derivatives to limit the potential lost revenue for 2021 to 2023 under the original financial derivatives. While limiting revenue losses in the future, the offsetting derivatives crystallized financial losses for Northland amounting to $25 million, $19 million and $9 million for the second half of 2021, 2022 and 2023, respectively. For the six months ended June 30, 2021, Gemini recognized $12 million of financial losses.

Subsequent to second quarter, Northland purchased financial put contracts for the majority of expected production in the fourth quarter of 2021 and for 2022 with a strike price close to the SDE floor, effectively maximizing APX revenue for the hedged production volume in the period. Management intends to enter into further put contracts as appropriate for future years, in accordance with Northland’s risk management policy. Refer to Northland’s 2021 Second Quarter MD&A for additional information.

Nordsee One Rotor Shaft Bearing Replacement

As disclosed in the first quarter, Northland identified a component issue on a number of wind turbines at the Nordsee One facility affecting the main rotor shaft bearing. Upon further assessment, in the second quarter, management concluded the component issue could affect all of the wind turbines, leading to premature failure and commenced a replacement campaign of the rotor shaft assemblies ("RSA"). The replacement RSA are a tested design expected to last the remaining life of the facility. In addition, the replacement parts will include warranty coverage from the vendor.

To date in 2021, Nordsee One has replaced four RSA and expects to replace another four this year. In 2022 and 2023, management expects to replace all remaining RSA as parts become available and weather conditions allow. In some cases, Nordsee One may need to curtail the performance of some turbines in order to extend their life, which would affect overall production (“turbine availability”) and may lead to lost revenues in 2022 and 2023. This issue is not expected at Northland’s other offshore wind facilities which utilize different turbines.

Management will expedite the campaign in 2021 in order to minimize downtime of the wind turbines, however, it is estimated that Nordsee One will incur lost revenue, due to turbine curtailments and shutdowns, of approximately €8 million ($11 million at Northland’s share) in 2021, including $4 million in the first half of the year. The anticipated total cost for the 2021 campaign to replace eight bearings is approximately €13 million ($16 million at Northland’s share) and the estimated total cost to replace all 54 bearings is €65 million ($83 million at Northland’s share), which is expected to be substantially covered by the warranty bond settlement received in 2020 relating to outstanding warranty obligations of Nordsee One’s turbine manufacturer upon its insolvency. Northland continues to assess the potential impacts for 2022 and 2023.

Efficient natural gas facilities

Electricity production decreased 28% or 204 GWh compared to the same quarter of 2020 due to a planned major maintenance outage in the second quarter of 2021 at North Battleford and timing of the annual shutdown at another facility.

Sales for the three months ended June 30, 2021, decreased 10% or $9 million compared to the same quarter of 2020 primarily due to lower production, as described above, partially offset by rate escalations at multiple facilities. Adjusted EBITDA of $51 million decreased 15% or $9 million compared to the same quarter of 2020 largely due to the same factors affecting sales.

Onshore renewable facilities

Electricity production was 11% or 38 GWh lower than the same quarter of 2020 due to overall lower solar and wind resources. Sales of $58 million were 4% or $3 million lower than the same quarter of 2020 primarily due to the variances in electricity production. Adjusted EBITDA of $39 million was also lower than the same quarter of 2020.


Sales of $53 million for the three months ended June 30, 2021, decreased 5% or $3 million compared to the same quarter of 2020 due to unfavourable foreign exchange rate fluctuations compared to last year. Adjusted EBITDA of $21 million decreased 8% or $2 million compared to the same quarter of 2020 mainly due to unfavourable foreign exchange rate fluctuations compared to last year.

Statement of income (loss)

G&A costs of $15 million were largely in line with the same quarter of 2020.

Development costs of $14 million decreased 28% or $6 million compared to the same quarter of 2020 primarily due to effects of the commencement of capitalization at Hai Long in 2020 combined with the timing of development activities at other projects.

Net finance costs of $76 million decreased 14% or $12 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 loss on derivative contracts was $25 million compared to a $30 million gain in the same quarter of 2020 primarily due to losses realized on settlement of APX hedges and net movement in the fair value of derivatives related to the APX, interest rates and foreign exchange contracts.

Foreign exchange loss of $46 million is primarily due to unrealized losses from fluctuations in the closing foreign exchange rate.

Other income was $35 million lower than the same quarter of 2020 due to proceeds received from the sale of turbines in the second quarter of 2020 originally intended for use with mono-bucket foundations at Deutsche Bucht as well as accrued insurance proceeds in the prior year period related to construction of Deutsche Bucht.

Net loss of $6 million decreased 109% or $81 million in the second 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 partially offset by $25 million lower tax expense.

Adjusted EBITDA

Adjusted EBITDA of $203 million for the three months ended June 30, 2021, decreased 10% or $24 million compared to the same quarter of 2020. The significant factors decreasing Adjusted EBITDA include:

  • $17 million decrease in operating results at Gemini primarily due to the lower wind resource and APX hedge losses realized; and
  • $12 million decrease in operating results from the efficient natural gas and onshore facilities largely due to the planned major outage at North Battleford and a lower wind and solar resource.

The factor partially offsetting these decreases in Adjusted EBITDA was a $4 million increase in operating results from Deutsche Bucht largely due to increased production commensurate with better grid availability compared to last year.

Free Cash Flow

Free Cash Flow of $6 million for the three months ended June 30, 2021, was 68% or $12 million lower than the same quarter of 2020. The significant factors decreasing Free Cash Flow include:

  • $14 million decrease in overall earnings primarily due to lower wind resource at the offshore wind facilities and a planned maintenance outage at North Battleford; and
  • $4 million increase in non-expansionary capital expenditures primarily at North Battleford and Nordsee One.

The factor partially offsetting the decrease in Free Cash Flow was a $6 million decrease in net financing costs primarily as a result of scheduled repayments on facility-level loans and repayment of borrowings on the corporate revolving facility in April 2021;

Adjusted Free Cash Flow of $22 million for the three months ended June 30, 2021, was 41% or $15 million lower than the same quarter of 2020. The significant factors decreasing Adjusted Free Cash Flow were as described above for Free Cash Flow but exclude the $4 million decrease in growth expenditures.

As at June 30, 2021, the rolling four quarter Free Cash Flow and the adjusted net payout ratio were 70% and 56%, respectively, calculated on the basis of cash dividends paid, compared to 62% and 54% for same period ending June 30, 2020. The increase in both net payout ratios was primarily due to lower Free Cash Flow and Adjusted Free Cash Flow and the effect new common shares issued in the quarter, partially offset by the reinstatement of the DRIP in 2020.

Refer to Northland’s MD&A for the Second Quarter of 2021 for additional information on sources of liquidity in addition to Adjusted Free Cash Flow.


The offshore wind performance experienced in the first half of the year is trending well below the long-term average across the three offshore wind facilities. Combined with the expectation for reduced turbine availability at Nordsee One due to component replacement of the wind turbines, leading to an expected loss in revenue of $11 million, Northland is providing an update on its expectations for full year 2021 financial guidance originally issued in February 2021.

For Adjusted EBITDA and Free Cash Flow per share, management expects 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, respectively. The refined guidance ranges assume offshore wind generation in the second half of 2021 to be close to historical long-term averages and also reflects a higher level of development costs being capitalized on projects that have met our capitalization criteria, including Baltic Power, New York Wind and Helios. Consequently, the capitalization of these development costs has resulted in lower expensed growth expenditures this year compared to original expectations. For Adjusted Free Cash Flow per share, management is revising the range to $1.60 to $1.70 (formerly $1.80 to $2.00).

Management believes the Company continues to have sufficient liquidity available to address the impact of COVID-19, while executing on its growth objectives. At June 30, 2021, Northland had access to $1,445 million of cash and liquidity, comprising $838 million of liquidity available under a syndicated revolving facility and $607 million of corporate cash on hand. On August 11, 2021, $522 million of cash was used to fund purchase price consideration for the Spanish Portfolio.

Second-Quarter Earnings Conference Call

Northland will hold an earnings conference call on August 12, 2021, to discuss its 2021 second 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, August 12, 2021 10:00 a.m. ET

Conference ID: 9358403

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 For those unable to attend the live call, an audio recording will be available on on August 13, 2021.

Northland’s unaudited interim condensed consolidated financial statements for the three months ended June 30, 2021, and related Management’s Discussion and Analysis can be found on SEDAR at under Northland’s profile and on


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.


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.


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 Northland’s expectations or ability to complete the acquisition of the Spanish Portfolio in the third quarter of 2021, on the terms negotiated by Northland or at all, Northland’s ability to integrate the Spanish Portfolio if the acquisition closes, the source of proceeds to pay for the acquisition of the Spanish Portfolio, the timing for energization, testing and commencement of commercial operations at La Lucha as well as related costs, future Adjusted EBITDA, Free Cash Flows (and as adjusted) and per share amounts, dividend payments and dividend payout ratios, guidance, and the closing date of the Offering, 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, the ability to satisfy all closing conditions to the acquisition of the Spanish Portfolio and the Offering, respectively, risks associated with assets such as those in the Spanish Portfolio, Northland’s ability to integrate the Spanish Portfolio, Northland’s ability to resolve issues with the Mexican authorities, 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, 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 under Northland’s profile and on Northland’s website at 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 August 11, 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 Relations