LONGUEUIL, QC, Aug. 3, 2021 /CNW Telbec/ - Innergex Renewable
Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") has
acquired 100% of the shares of Empresa Eléctrica Licán S.A.
("Licán"), which owns and operates an 18 MW run-of-river hydro
facility with a reservoir for daily regulation for up to
3.5 hours. The facility commissioned in 2011 is located on the
Licán river, in the region of Los Rios in Chile. Licán was acquired for a total
enterprise value of US$40.5 million
(CAN$50.5 million) with an equity investment for Innergex of
US$16.6 million
(CAN$20.6 million), broken down to payment to the shareholders
and the partial repayment of the existing debt and other costs.
"It was only last month that we consolidated our presence in
Chile with the acquisition of the
remaining interests in Energía Llaima. I mentioned at that time how
we intend to increase our presence in the region, and the
acquisition of Licán supports this growth strategy in South America," said Michel Letellier, President and Chief Executive
Officer of Innergex. "Licán is a high-quality asset with nine years
of proven profitability selling its output on the merchant market.
The facility features a small reservoir that will allow us to
regulate the flow for a continuous energy supply. The acquisition
of Licán complements our strategy to diversify our revenue sources
by adding capacity revenues to our mix."
The facility is expected to produce a gross estimated long-term
average of 77.8 GWh per year. The asset is expected to reach an
Adjusted EBITDA of US$2.1 million
(CAN$2.6 million) on average for the first five full years.
The total equity investment of US$16.6
million (CAN$20.6 million) will be financed with cash held
in Chile.
About Innergex Renewable Energy Inc.
For over
30 years, Innergex has believed in a world where abundant renewable
energy promotes healthier communities and creates shared
prosperity. As an independent renewable power producer which
develops, acquires, owns and operates hydroelectric facilities,
wind farms, solar farms and energy storage facilities, Innergex is
convinced that generating power from renewable sources will lead
the way to a better world. Innergex conducts operations in
Canada, the United States, France and Chile and manages a large portfolio of
high-quality assets. Its approach to building shareholder value is
to generate sustainable cash flows, provide an attractive
risk-adjusted return on invested capital and to distribute a stable
dividend.
Cautionary Statement Regarding Forward-Looking
Information
To inform readers of the Corporation's future
prospects, this press release contains forward-looking information
within the meaning of applicable securities laws ("Forward-Looking
Information"), including the Corporation's projected financial
performance, power production, project acquisitions, and strategic,
operational and financial benefits and accretion expected to result
from such acquisitions, business strategy, future development and
growth prospects, business integration, business outlook,
objectives, plans and strategic priorities, and other statements
that are not historical facts.
Forward-Looking Information can generally be identified by the
use of words such as "approximately", "may", "will", "could",
"believes", "expects", "intends", "should", "would", "plans",
"potential", "project", "anticipates", "estimates", "scheduled" or
"forecasts", or other comparable terms that state that certain
events will or will not occur. It represents the projections and
expectations of the Corporation relating to future events or
results as of the date of this press release.
Forward-Looking Information includes future-oriented financial
information or financial outlook within the meaning of securities
laws, including information regarding the Corporation's expected
production, projected revenues, projected Revenues Proportionate,
projected Adjusted EBITDA and projected Adjusted EBITDA
Proportionate, and other statements that are not historical facts.
Such information is intended to inform readers of the potential
financial impact of expected results, and of completed and future
acquisitions. Such information may not be appropriate for other
purposes.
Forward-looking Information is based on certain key assumptions
made by Innergex, including, without restrictions, assumptions
concerning project performance, economic, financial and financial
market conditions, expectations and assumptions concerning
availability of capital resources and timely performance by
third-parties of contractual obligations, receipt of regulatory
approvals and the divestiture of select assets. Although Innergex
believes that the expectations and assumptions on which such
forward-looking information is based are reasonable, under the
current circumstances, readers are cautioned not to rely unduly on
this forward-looking information as no assurance can be given that
they will prove to be correct. The forward-looking information
contained in this press release is made as of the date hereof and
Innergex does not undertake any obligation to update or revise any
forward-looking information, whether as a result of events or
circumstances occurring after the date hereof, unless so required
by law.
For more information on the risks and uncertainties that may
cause actual results or performance to be materially different from
those expressed, implied or presented by the forward-looking
information or on the principal assumptions used to derive this
information, please refer to the "Forward-Looking Information"
section of the Management's Discussion and Analysis for the
three-month period ended March 31,
2021.
Cautionary Statement Regarding Non-IFRS measures
The
unaudited condensed interim consolidated financial statements for
the three-month period ended March 31,
2021, have been prepared in accordance with International
Financial Reporting Standards ("IFRS"). However, some measures
referred to in this press release are not recognized measures under
IFRS and therefore may not be comparable to those presented by
other issuers. Innergex believes that these indicators are
important, as they provide management and the reader with
additional information about the Corporation's production and cash
generation capabilities, its ability to sustain current dividends
and dividend increases and its ability to fund its growth. These
indicators also facilitate the comparison of results over different
periods. Innergex's share of Revenues of joint ventures and
associates, Revenues Proportionate, Adjusted EBITDA, Adjusted
EBITDA Margin, Adjusted EBITDA Proportionate, Adjusted EBITDA
Proportionate Margin, Innergex's share of Adjusted EBITDA of joint
ventures and associates, Adjusted Net Loss, Free Cash Flow,
Adjusted Free Cash Flow, Payout Ratio and Adjusted Payout Ratio are
not measures recognized by IFRS and have no standardized meaning
prescribed by IFRS. Please refer to the "Non-IFRS Measures" section
of the Management's Discussion and Analysis for the three-month
period ended March 31, 2021.
SOURCE Innergex Renewable Energy Inc.