TORONTO, Feb. 24, 2022 (GLOBE NEWSWIRE) -- Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) today reported financial results for the three months and year ended December 31, 2021. All dollar amounts set out herein are in thousands of Canadian dollars, unless otherwise stated.
“This past year Northland made significant progress on three key strategic priorities: securing near-term growth, advancing our large offshore wind pipeline and pursuing a diverse range of sources to fund this growth,” said Mike Crawley, Northland’s President and Chief Executive Officer. “The immediate benefit of this is seen in our 2021 financial results as strong contributions from the Spanish portfolio and EBSA helped offset an anomalously low wind resource at our North Sea offshore wind facilities. This performance allowed us to achieve the mid-point of our guidance for both Adjusted EBITDA and Free Cash Flow. Additional progress on these priorities was achieved through the recent formation of the 1.3GW Nordsee Cluster, Suba solar project auction award in Colombia, and the Scottish offshore wind lease announcement, along with the additional liquidity gained through the EBSA re-financing. Finally, Northland’s resilient and pro-active facility operations team optimized the contribution from our operating fleet by delivering well above budgeted availability levels.”
Highlights
Fourth Quarter and Full-Year 2021 Financial Results
- Sales increased by 30% in the fourth quarter and 2% on a full-year basis to $640 million and $2,093 million, respectively, from $493 million and $2,061 million in 2020. The increase in the quarter was primarily due to contributions from the Spanish portfolio acquired in August 2021 and improved results from the offshore wind facilities relative to 2020, partially offset by the effect of unfavourable foreign exchange rate fluctuations. The full-year increase was primarily due to contributions from the Spanish portfolio and rate escalations at the efficient natural gas facilities, primarily offset by lower offshore wind resource, lower production at Nordsee One due to lower turbine availability, and the effect of unfavourable foreign exchange rate fluctuations.
- Gross profit increased by 33% in the fourth quarter and 1% on a full-year basis to $580 million and $1,880 million, respectively, from $436 million and $1,858 million in 2020 primarily due to the increase in sales, partially offset by higher gas costs at the efficient natural gas facilities.
- Adjusted EBITDA (a non-IFRS measure) increased 35% in the fourth quarter and decreased 3% on a full-year basis to $364 million and $1,137 million, respectively, from $269 million and $1,170 million in 2020. The increase in the fourth quarter was primarily due to the same factors that increased sales and gross profit. The full-year decreased compared to 2020 due to increased operating costs primarily at the offshore wind facilities, partially offset by the same factors that increased sales and gross profit. Adjusted EBITDA of $1,137 million was within the 2021 guidance range of $1.1 to $1.2 billion.
- Free Cash Flow per share (a non-IFRS measure) increased 146% in the fourth quarter and decreased 19% on a full-year basis to $0.69 and $1.40, respectively from $0.28 and $1.73 in 2020. The increase in the fourth quarter was primarily due to the same factors that increased sales and gross profit combined with lower net interest costs and non-expansionary capital expenditures. The lower full-year Free Cash flow per share resulted from a decrease in overall earnings from the offshore wind facilities, primarily due to low wind resource in the North Sea, partially offset by contributions from the Spanish portfolio and lower net interest costs (excluding foreign exchange rate fluctuation since cash flow distributions are almost fully hedged).
Free Cash Flow per share of $1.40 exceeded the low end of the 2021 guidance range of $1.30 to $1.50 (which Northland had guided to in its Third Quarter 2021 Report), due to stronger than expected Adjusted EBITDA and Free Cash Flow contributions from the Spanish portfolio.
- Adjusted Free Cash Flow per share (a non-IFRS measure) increased 146% in the fourth quarter to $0.80 from $0.39 in 2020 and decreased 19% on a full-year basis to $1.77 from $2.09 in 2020 primarily due to the same factors affecting Free Cash Flow but excluding growth expenditures. Adjusted Free Cash Flow per share was above the revised 2021 guidance range of $1.60 to $1.70 per share as a result the same factors and lower growth expenditures than forecast, primarily due to timing.
- Net income increased 383% in the fourth quarter to $130 million from $27 million in 2020 primarily due to the factor described above. Net income decreased 44% full-year 2021 to $270 million from $485 million in 2020 primarily as a result of higher depreciation of property, plant and equipment compared to 2020.
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 December 31, | Year ended December 31, | ||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| FINANCIALS | ||||||||||||
| Sales | $ | 640,090 | $ | 492,834 | $ | 2,093,255 | $ | 2,060,627 | ||||
| Gross profit | 579,878 | 435,611 | 1,879,762 | 1,858,298 | ||||||||
| Operating income | 295,480 | 177,044 | 808,650 | 900,213 | ||||||||
| Net income (loss) | 129,528 | 26,797 | 269,879 | 485,057 | ||||||||
| Adjusted EBITDA (a non-IFRS measure) | 363,648 | 268,516 | 1,137,004 | 1,170,097 | ||||||||
| Cash provided by operating activities | 559,368 | 310,499 | 1,609,295 | 1,321,601 | ||||||||
| Free Cash Flow (a non-IFRS measure) | 156,341 | 56,376 | 307,401 | 343,588 | ||||||||
| Adjusted Free Cash Flow (a non-IFRS measure) | 182,012 | 78,803 | 386,366 | 415,398 | ||||||||
| Cash dividends paid | 44,688 | 40,652 | 172,755 | 217,918 | ||||||||
| Total dividends declared (1) | $ | 68,001 | $ | 60,939 | $ | 264,200 | $ | 245,067 | ||||
| Per Share | ||||||||||||
| Weighted average number of shares - basic (000s) | 226,568 | 201,962 | 218,861 | 198,774 | ||||||||
| Net income (loss) - basic | $ | 0.45 | $ | 0.11 | $ | 0.82 | $ | 1.86 | ||||
| Free Cash Flow - basic (a non-IFRS measure) | $ | 0.69 | $ | 0.28 | $ | 1.40 | $ | 1.73 | ||||
| Adjusted Free Cash Flow - basic (a non-IFRS measure) | $ | 0.80 | $ | 0.39 | $ | 1.77 | $ | 2.09 | ||||
| Total dividends declared | $ | 0.30 | $ | 0.30 | $ | 1.20 | $ | 1.20 | ||||
| ENERGY VOLUMES | ||||||||||||
| Electricity production in gigawatt hours (GWh) | 2,950 | 2,646 | 8,879 | 9,449 | ||||||||
| (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:
- Renewal and upsizing of EBSA’s Credit Facility to $533 million - 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 aggregate amount of the financing was upsized to $533 million, driven primarily by expected growth in EBSA’s EBITDA.
Renewables Growth:
- 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 – Subsequent to December 31, 2021, 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.
- Colombian 130MW Solar Projects – In November 2021, Northland, in partnership with EDF Renewables, a subsidiary of Électricité de France S.A. (EPA:EDF), were awarded the right to build two solar projects with a total combined capacity of 130MW. The solar projects will benefit from a 15-year Power Purchase Agreement (PPA) with multiple energy distribution and commercial entities in Colombia, starting in 2023. Northland has a 50% interest in the projects with commercial operations expected in the second half of 2023.
Fourth Quarter Results Summary
Offshore wind facilities
Electricity production was in line with the same quarter of 2020, primarily due to lower wind resource, partially offset by fewer uncompensated outages.
Sales of $334 million increased 27% or $71 million compared to the same quarter of 2020 largely due to slightly higher electricity prices on German production above the Subsidy Cap and the factors affecting electricity production. Foreign exchange rate fluctuations resulted in $26 million lower sales compared to the same quarter of 2020.
Adjusted EBITDA of $206 million increased 15% or $27 million largely due to higher electricity prices at Gemini and fewer periods of unpaid curtailments at the two German facilities.
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 December 31, | ||||||||||
| 2021 (1) | 2020 (1) | Historical Average (2) | Historical High | Historical Low | ||||||
| Electricity production (GWh) | ||||||||||
| Gemini | 743 | 786 | 771 | 824 | 739 | |||||
| Nordsee One | 333 | 299 | 324 | 346 | 298 | |||||
| Deutsche Bucht | 320 | 310 | 315 | 320 | 310 | |||||
| Total | 1,396 | 1,395 | ||||||||
| (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. | ||||||||||
| Year ended December 31, | |||||||||
| 2021 (1) | 2020 (1) | Historical Average (2) | Historical High (2) | Historical Low (2) | |||||
| Electricity production (GWh) | |||||||||
| Gemini | 2,193 | 2,496 | 2,358 | 2,496 | 2,193 | ||||
| Nordsee One | 968 | 1,065 | 1,050 | 1,084 | 968 | ||||
| Deutsche Bucht | 927 | 978 | 948 | 968 | 927 | ||||
| Total | 4,088 | 4,539 | |||||||
| (1) Includes GWh produced and excludes unpaid curtailments. For Deutsche Bucht, includes pre-completion production for the first quarter of 2020. | |||||||||
| (2) Represents the 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. | |||||||||
Onshore renewable facilities
Electricity production was 59% or 222GWh higher than the same quarter of 2020 due to the contribution from the Spanish portfolio. Sales of $114 million were 122% or $63 million higher than the same quarter of 2020 primarily due to the contribution from the Spanish portfolio. Adjusted EBITDA of $84 million was higher than the same quarter of 2020. Excluding the contribution from the Spanish portfolio, production, sales and Adjusted EBITDA in the fourth quarter would have been 12%, 7% and 10% lower, respectively, primarily due to lower resource. Refer to Northland’s 2021 Annual Report for additional information on the Spanish portfolio.
Efficient natural gas facilities
Electricity production increased 9% or 80GWh compared to the same quarter of 2020 due to higher on-peak production and an increase in dispatches, partially offset by the effect of Kirkland Lake operating under the enhanced dispatch contract compared to the baseload PPA in prior periods, resulting in lower production and sales, though improved gross profit.
Sales of $127 million in the fourth quarter increased 13% or $15 million compared to the same quarter of 2020 due to higher production and annual rate escalations at multiple facilities. Adjusted EBITDA of $83 million increased 23% or $16 million compared to the same quarter of 2020 largely due to the same factors affecting sales.
Utilities
Sales of $59 million in the fourth quarter, were in line with the same quarter of 2020. Adjusted EBITDA of $24 million increased 5% or $1 million compared to the same quarter of 2020 largely due to the optimizations of operations. Refer to Northland’s 2021 Annual Report for additional information on the EBSA Refinancing completed in December 2021.
Statement of income (loss)
General and administrative (G&A) costs of $22 million in the fourth quarter decreased 23% or $6 million compared to the same quarter of 2020 due to lower operations G&A expenses primarily due to certain non-recurring costs incurred at EBSA in 2020 and lower facility personnel costs in the fourth quarter of 2021, partially offset by higher corporate G&A largely due to higher personnel and other costs in support of Northland’s global growth.
Development costs of $27 million in the fourth quarter increased 35% or $7 million compared to the same quarter of 2020.
Net finance costs of $100 million in the fourth quarter increased 5% or $5 million compared to the same quarter of 2020 primarily as a result of the increase in Northland’s debt associated with the acquisition of the Spanish Portfolio.
Fair value gain on derivative contracts was $53 million in the fourth quarter primarily due to net movements in the fair value of derivatives related to the Gemini market price, interest rates and foreign exchange contracts.
Foreign exchange loss of $29 million in the fourth quarter primarily due to unrealized losses from fluctuations in the closing foreign exchange rates.
Net income of $130 million in the fourth quarter increased 383% or $103 million in the fourth quarter of 2021 compared to the same quarter of 2020 primarily as a result of the factors described above, combined with a $58 million higher total tax expense.
Adjusted EBITDA
| Three months ended December 31, | Year ended December 31, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net income (loss) | $ | 129,528 | $ | 26,797 | $ | 269,879 | $ | 485,057 | |||||||
| Adjustments: | |||||||||||||||
| Finance costs, net | 99,611 | 95,094 | 342,417 | 365,168 | |||||||||||
| Gemini interest income | 3,843 | 4,069 | 15,810 | 16,075 | |||||||||||
| Share of joint venture project development costs | 3,510 | (2,679 | ) | (4,880 | ) | (4,669 | ) | ||||||||
| Acquisition costs | 1,659 | — | 7,666 | 7,474 | |||||||||||
| Provision for (recovery of) income taxes | 79,888 | 22,304 | 153,352 | 115,011 | |||||||||||
| Depreciation of property, plant and equipment | 155,356 | 132,392 | 612,755 | 529,569 | |||||||||||
| Amortization of contracts and intangible assets | (5,594 | ) | 14,712 | 23,284 | 43,361 | ||||||||||
| Fair value (gain) loss on derivative contracts | (78,047 | ) | (497 | ) | (153,536 | ) | (11,271 | ) | |||||||
| Foreign exchange (gain) loss | 29,429 | 19,654 | 81,318 | (71,344 | ) | ||||||||||
| Impairment loss | — | — | 29,981 | — | |||||||||||
| Elimination of non-controlling interests | (74,593 | ) | (41,895 | ) | (260,567 | ) | (278,709 | ) | |||||||
| Finance lease (lessor) | (1,113 | ) | (5,657 | ) | (7,137 | ) | (1,803 | ) | |||||||
| Other adjustments | 20,171 | 4,222 | 26,662 | (23,822 | ) | ||||||||||
| Adjusted EBITDA | $ | 363,648 | $ | 268,516 | $ | 1,137,004 | $ | 1,170,097 | |||||||
Adjusted EBITDA of $364 million in the fourth quarter, increased 35% or $95 million compared to the same quarter of 2020. The significant factors increasing Adjusted EBITDA include:
- $55 million contribution from the Spanish portfolio of onshore wind and solar facilities acquired in August 2021;
- $30 million increase in operating results at Gemini primarily due to slightly higher hedged wholesale market prices realized on production above the Gemini Subsidy Cap relative to 2020; and
- $14 million increase in operating results primarily due to optimized operations and annual escalations at EBSA and at the efficient natural gas facilities.
Free Cash Flow and Adjusted Free Cash Flow
| Three months ended December 31, | Year ended December 31, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Cash provided by operating activities | $ | 559,368 | $ | 310,499 | $ | 1,609,295 | $ | 1,321,601 | |||||||
| Adjustments: | |||||||||||||||
| Net change in non-cash working capital balances related to operations | (111,986 | ) | 13,648 | (292,499 | ) | 32,333 | |||||||||
| Non-expansionary capital expenditures | (7,734 | ) | (15,793 | ) | (40,558 | ) | (28,324 | ) | |||||||
| Restricted funding for major maintenance, debt and decommissioning reserves | 2,294 | (3,902 | ) | (7,505 | ) | (15,756 | ) | ||||||||
| Interest paid, net | (100,842 | ) | (110,062 | ) | (277,908 | ) | (309,077 | ) | |||||||
| Scheduled principal repayments on facility debt | (278,667 | ) | (233,773 | ) | (635,901 | ) | (789,778 | ) | |||||||
| Funds set aside (utilized) for scheduled principal repayments | 119,951 | 104,140 | 635 | 179,792 | |||||||||||
| Preferred share dividends | (2,710 | ) | (2,707 | ) | (10,811 | ) | (11,364 | ) | |||||||
| Consolidation of non-controlling interests | (40,240 | ) | (26,151 | ) | (90,022 | ) | (123,609 | ) | |||||||
| Deutsche Bucht Completion Distribution | — | — | — | 93,144 | |||||||||||
| Cash from operating activities from projects under construction | — | — | — | (66,853 | ) | ||||||||||
| Lease payments | (2,169 | ) | (2,447 | ) | (8,966 | ) | (9,210 | ) | |||||||
| Investment income (1) | 4,750 | 5,432 | 20,153 | 22,450 | |||||||||||
| Nordsee One proceeds from government grant and warranty settlement | 10,764 | 7,809 | 38,636 | 28,281 | |||||||||||
| Share of joint venture project development costs | (581 | ) | (2,679 | ) | (8,971 | ) | (4,669 | ) | |||||||
| Foreign exchange | (2,682 | ) | 855 | 9,902 | 5,072 | ||||||||||
| Other (2) | 6,825 | 11,507 | 1,921 | 19,555 | |||||||||||
| Free Cash Flow | $ | 156,341 | $ | 56,376 | $ | 307,401 | $ | 343,588 | |||||||
| Add back: Growth expenditures | 25,671 | 22,427 | 78,965 | 71,810 | |||||||||||
| Adjusted Free Cash Flow | $ | 182,012 | 78,803 | $ | 386,366 | $ | 415,398 | ||||||||
| (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. | |||||||||||||||
Free Cash Flow of $156 million in the fourth quarter, was 177% or $100 million higher than the same quarter of 2020. The significant factors increasing Free Cash Flow were:
- $51 million increase in overall earnings across all facilities, excluding the Spanish portfolio, as described in Adjusted EBITDA, primarily at the offshore wind facilities due to fewer periods of unpaid curtailments and negative prices at the German facilities and higher electricity prices on German production above the Subsidy Cap;
- $27 million contribution from the Spanish portfolio of onshore wind and solar facilities acquired in August 2021;
- $10 million decrease in net interest costs due to scheduled principal repayments on facility-level loans; and
- $9 million decrease in non-expansionary capital expenditures primarily at EBSA.
Adjusted Free Cash Flow, which excludes all non-capitalized growth expenditures, amounted to $182 million for the three months ended December 31, 2021, and was 131% or $103 million higher than the same quarter of 2020. The significant factors increasing Adjusted Free Cash Flow were as described for Free Cash Flow.
Refer to Northland’s 2021 Annual Report for additional information on sources of liquidity in addition to Adjusted Free Cash Flow.
2022 Financial Outlook - Key Highlights
Adjusted EBITDA
For 2022, management expects Adjusted EBITDA to be in the range of $1.15 billion to $1.25 billion.
Free Cash Flow and Adjusted Free Cash Flow
In 2022, management expects Free Cash Flow to be in the range of $1.20 to $1.40 per share and Adjusted Free Cash Flow to be in the range of $1.65 to $1.85 per share.
As a growth company with a significant pipeline of development projects, Northland is committed to unlocking the value in this pipeline by deploying early-stage investment capital (growth development expenditures) to advance its projects. As in 2021, with the regional development offices fully functional and several growth opportunities secured, Northland expects to incur higher development expenditures in 2022. These expenses are expected to be approximately $100 million in 2022 compared to $79 million in 2021, which are included in the aforementioned variance explanations. Early-stage development investments will reduce near-term Free Cash Flow until the projects achieve commercial operations but are expected to deliver long-term, sustainable growth in earnings and Free Cash Flow.
In addition, any gains from the future sell-down of ownership interests in development assets would be included in Free Cash Flow and Adjusted Free Cash Flow as they relate to capturing development profits at key milestones. Currently, the 2022 guidance for Free Cash Flow and Adjusted Free Cash Flow does not incorporate any sell-down proceeds and as such, net proceeds would increase reported Free Cash Flow in the event they occur in 2022.
Long-Term Outlook
Currently, Northland has 366MW of additional capacity in construction, with the expectation for completion in 2022. The Company also has almost 3GW of gross capacity mid- to late-stage development projects that are scheduled for financial close and commencement of construction within the next two years. Once these projects are complete, Northland’s total gross capacity will nearly double to more than 6.5GW by 2027. Longer-term, the Company continues to advance a pipeline of over 10GW encompassing its identified projects and additional opportunities to support the sustained growth of the Company. Northland’s investor day materials provide more details on our growth ambitions including an illustration of our funding plan and specific project milestones achieved since last year that are expected to create value for shareholders over the long-term.
For a detailed table of Northland’s growth projects and associated capacity please refer to Northland’s 2021 Annual Report.
The Company continues to have sufficient liquidity available to execute on its growth objectives. As at December 31, 2021, Northland had access to $776 million of cash and liquidity, comprising $748 million of liquidity available under a syndicated revolving facility and $28 million of corporate cash on hand.
Fourth-Quarter Earnings Conference Call
Northland will hold an earnings conference call on February 25, 2022, to discuss its 2021 fourth 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:
Friday, February 25, 2022, 10:00 a.m. ET
Conference ID: 8390738
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 February 28, 2022.
Northland’s audited consolidated financial statements for the twelve months ended December 31, 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 3.2GW (net 2.8GW) of operating generating 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”), 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 as 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, 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 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 February 24, 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 Relations
647-288-1019
investorrelations@northlandpower.com
northlandpower.com
