- Three commissionings totaling net 430 MW during the year:
Yonne II, Hillcrest and Griffin
Trail
- Two acquisitions in Chile increasing net capacity by 101 MW during
the year: Energía Llaima and Licán
- One acquisition in the U.S. in Q4 2021 as part of the
Strategic Alliance with Hydro-Québec increasing net capacity by 30
MW: Curtis Palmer
- One acquisition in Chile
in Q1 2022 adding net 51 MW: San Andrés
- Definitive agreement to acquire the Aela portfolio of
wind assets of net 332 MW in Chile
in Q1 2022
- $172.5 million Bought Deal
Equity Financing and $37.3 million
Concurrent Private Placement in Q1 2022
- 20-year power purchase agreement obtained with EDF-OA for
the 29 MW Auxy Bois Regnier project in France in Q1 2022
All amounts are in
thousands of Canadian dollars, unless otherwise
indicated.
|
LONGUEUIL, QC,
Feb. 23, 2022 /CNW/ - Innergex
Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation")
today released its operating and financial results for the fourth
quarter and year ended December 31,
2021. /CNW/ - Innergex Renewable Energy Inc.
(TSX: INE) ("Innergex" or the "Corporation") today released its
operating and financial results for the fourth quarter and year
ended December 31, 2021.
"I am very proud of the resilience and adaptability our
team has shown at Innergex in 2021 despite the challenging pandemic
context and extreme weather conditions. During the year, we made
significant progress on our greenfield activities that led to the
commissioning of three new assets, two of which being of
utility-scale capacity. We also made acquisitions in Chile and the U.S. that brought
diversification to our operating portfolio and should contribute to
improving our payout ratio," said Michel
Letellier, President and Chief Executive Officer of
Innergex. "Our goal in 2022 is to consolidate and expand our
current position by continuing to diversify our portfolio of assets
through the development of our own projects and acquisitions,
either in our traditional or in storage and green hydrogen
technologies. The year is already off to a good start, with two
acquisitions greatly increasing our presence in Chile, and significant progress with new
projects under development."
FINANCIAL HIGHLIGHTS
|
Three months ended
December 31
|
Year ended December 31
|
2021
|
2020
|
Change
|
2021
|
February 2021 Texas
Events (9 days) 3
|
2021
Normalized
|
2020
|
Change
|
Production
(MWh)
|
2,583,157
|
2,186,961
|
18 %
|
9,055,215
|
—
|
9,055,215
|
8,073,914
|
12 %
|
Long-Term Average
(MWh) ("LTA")
|
2,584,077
|
2,072,720
|
25 %
|
9,659,836
|
—
|
9,659,836
|
8,397,057
|
15 %
|
Revenues
|
202,388
|
167,927
|
21 %
|
747,208
|
(54,967)
|
692,241
|
613,207
|
13 %
|
Operating, general,
administrative and prospective projects expenses
|
65,077
|
50,097
|
30 %
|
221,571
|
—
|
221,571
|
191,098
|
16 %
|
Adjusted
EBITDA1
|
137,311
|
117,830
|
17 %
|
525,637
|
(54,967)
|
470,670
|
422,109
|
12 %
|
Adjusted EBITDA
Margin1
|
67.8 %
|
70.2 %
|
|
70.3 %
|
(2.3) %
|
68.0 %
|
68.8 %
|
|
Net earnings
(loss)
|
5,743
|
11,894
|
(52) %
|
(185,394)
|
64,219
|
(121,175)
|
(29,111)
|
316 %
|
Adjusted Net (Loss)
Earnings1
|
(9,974)
|
12,990
|
(177) %
|
(6,951)
|
—
|
(6,951)
|
22,311
|
(131) %
|
Net (Loss) Earnings
Attributable to Owners, $ per share - basic and diluted
|
(0.02)
|
0.06
|
|
(1.09)
|
0.35
|
(0.74)
|
(0.23)
|
|
Production
Proportionate (MWh)1
|
2,676,157
|
2,573,358
|
4 %
|
9,853,366
|
—
|
9,853,366
|
9,590,140
|
3
%
|
Revenues
Proportionate1
|
231,051
|
211,355
|
9 %
|
913,147
|
(95,273)
|
817,874
|
781,466
|
5
%
|
Adjusted EBITDA
Proportionate1
|
162,954
|
152,930
|
7 %
|
673,745
|
(95,273)
|
578,472
|
560,328
|
3
%
|
Adjusted EBITDA
Proportionate Margin1
|
70.5 %
|
72.4 %
|
|
73.8 %
|
(3.1) %
|
70.7 %
|
71.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
February 2021 Texas
Events
(9 days)
2
|
2021
Normalized
|
2020
|
Change
|
Cash Flow from
Operating Activities
|
|
|
|
265,498
|
17,093
|
282,591
|
235,108
|
20 %
|
Free Cash
Flow1
|
|
|
|
92,315
|
15,789
|
108,104
|
93,260
|
16 %
|
Payout
Ratio1,2
|
|
|
|
143 %
|
(20) %
|
122 %
|
135 %
|
|
1.
|
This measure is not a
recognized measure under IFRS and therefore may not be comparable
to those presented by other issuers. Please refer to the "Non-IFRS
Measures" section for more information.
|
2.
|
For the year ended
December 31, 2021, the Free Cash Flow and Payout Ratio are
normalized to exclude the impacts of the February 2021 Texas
Events. Please refer to the "February 2021 Texas Events" section of
the 2021 Annual Report for more information.
|
3.
|
For the twelve months
ended December 31, 2021, the operating results are normalized to
exclude the impacts of the February 2021 Texas Events. Please refer
to the "February 2021 Texas Events" section of the 2021 Annual
Report for more information.
|
OPERATING PERFORMANCE
Production for the three-month period
ended December 31, 2021, was 100% of LTA. Innergex's share of
production of joint ventures and associates1 was 106% of
LTA, translating into a Production Proportionate1 at
100% of LTA. Revenues were up 21% at $202.4
million compared with the same period last year. This
increase is mainly explained by the contribution of the Curtis
Palmer Acquisition, higher production at most of the facilities in
British Columbia, the acquisition
of the remaining 50% interest in Energía Llaima, which is now
included in Innergex's consolidated revenues, the commissioning of
the Griffin Trail wind and Amazon Solar Farm Ohio - Hillcrest ("Hillcrest") facilities and higher
selling prices at the Salvador
solar facility. These items were partly offset by lower production
at the hydro and wind facilities in Quebec, from lower production at the wind
facilities in France and lower
average selling prices at the Foard City wind facility. Revenues
Proportionate1 increased by 9% to $231.1 million over the same period last
year.
For the three-month period ended December 31, 2021, Operating, general,
administrative and prospective projects expenses were up 30% at
$65.1 million compared with the same
period last year. The increase is mainly attributable to higher
prospective expenses to support the Corporation's growth, higher
maintenance costs at some of the hydro facilities in British Columbia, the Curtis Palmer
Acquisition, the acquisition of the remaining 50% interest in
Energía Llaima, the commissioning of the Griffin Trail wind and
Hillcrest solar facilities and
higher maintenance expenses at the Phoebe solar facility. These
items were partly offset by lower maintenance costs at some of the
wind facilities in Quebec, lower
tax on production in France and
lower operating expenses due to non-recurring expenses at the
Foard City facility in the same
period last year. The Adjusted EBITDA1 was 17% higher at
$137.3 million for the
three-month period ended December 31, 2021, compared with the
same period last year. The Adjusted EBITDA
Proportionate1 reached $163.0 million, a 7% increase compared with
the same period last year.
Innergex recorded net earnings of $5.7 million ($0.02
earnings per share - basic and diluted) for the three-month period
ended December 31, 2021, compared with net earnings of
$11.9 million ($0.06 earnings per share - basic and diluted) for
the corresponding period in 2020. In addition to the operating
performance explained above and the increase in prospective
projects expenses, the $6.2 million decrease in net earnings mainly
stems from a $29.8 million
increase in income tax expense mainly due to tax attributes being
allocated to tax equity investors of the Griffin Trail and
Hillcrest facilities commissioned
in 2021; a $19.3 million increase in
depreciation and amortization, mainly attributable to the Energía
Llaima and Curtis Palmer acquisitions and the Griffin Trail and
Hillcrest commissioning in 2021; a
$13.1 million decrease in the share
of earnings of joint ventures and associates, mainly related to the
Flat Top and Shannon mark-to-market gain in 2020, compared to nil
in 2021; a $10.0 million increase in
finance costs mainly related to the Griffin Trail and Hillcrest facilities, the Energía Llaima
Acquisition, and an increase in inflation compensation interests on
the Harrison Hydro real return bonds; and an unfavourable
$5.4 million unrealized change
in the fair value of financial instruments, mainly related to the
increase in merchant power curves for the Phoebe power hedge,
partly offset by a favourable change in foreign exchange forward
curves, compared with the same period in 2020. These items were
partly offset by a $27.3 million
increase in other income mainly related to the production tax
credits and tax attributes allocated to the tax equity investors at
the Griffin Trail wind facility, following its commissioning during
the third quarter; and the recognition of a $26.6 million impairment charge on the investment
in Energía Llaima in 2020, compared with no impairment charge for
the same period in 2021.
For the year ended December 31, 2021,
Production was 94% of LTA. Innergex's share of production of
joint ventures and associates1 was 97% of LTA,
translating into a Production Proportionate1 at 94% of
LTA. Revenues, on a normalized basis, excluding the
February 2021 Texas Events, were up
13% to $692.2 million compared with
the same period last year. This increase is mainly explained by the
liquidated damages due from the EPC contractor for loss of revenues
caused by the delays in and the commissioning of the Hillcrest solar facility, the acquisition of
the remaining 50% interest in Energía Llaima, which is now included
in Innergex's consolidated revenues, the first full year of
contribution from the Mountain Air Acquisition, the Curtis Palmer
Acquisition, the commissioning of the Griffin Trail wind facility,
higher production at most of the facilities in British Columbia mainly attributable to higher
revenues from higher production explained by lower 2020 figures
that included the impact of the curtailment imposed by BC Hydro for
five facilities and higher selling prices at the Salvador solar facility combined with its
first full year of contribution following its acquisition. These
items were partly offset by a lower contribution from the wind
facilities in Quebec and
France due to lower production, a
lower contribution from some Quebec hydro facilities due to the combined
effect of lower production and lower selling prices from the
recently renewed PPAs, a lower contribution from the Foard City wind facility due to a combined
effect of lower average selling prices and lower production and by
lower revenues at the Phoebe solar facility due to lower production
from the higher curtailment required by the distribution network in
Texas along with lower irradiation
despite higher average selling prices. Revenues
Proportionate1, on a normalized basis, excluding the
February 2021 Texas Events, were up
5% at $817.9 million over the
same period last year.
For the year ended December 31, 2021, Operating,
general, administrative and prospective projects expenses were
up 16% to $221.6 million
compared with the same period last year. The increase is mainly
attributable to higher prospective expenses to support the
Corporation's growth, the acquisition of the remaining 50% interest
in Energía Llaima, higher expenses from the commissioning of the
Griffin Trail wind facility, a full year contribution of the
Mountain Air Acquisition, the commissioning of the Hillcrest solar facility, the Curtis Palmer
Acquisition and a full year contribution of the Salvador
Acquisition. These items were partly offset by lower operating
expenses due to non-recurring expenses at the Foard City wind facility in the same period
last year. The Adjusted EBITDA1, on a normalized basis,
excluding the February 2021 Texas
Events, was 12% higher at $470.7 million for the year ended December
31, 2021, compared with the same period last year. The
Adjusted EBITDA Proportionate1, on a normalized basis,
excluding the February 2021 Texas
Events, reached $578.5 million,
a 3% increase compared with the same period last year.
Innergex recorded a net loss of $185.4 million ($1.09 loss per share - basic and diluted) for the
year ended December 31, 2021,
compared with a net loss of $29.1
million ($0.23 loss per share
- basic and diluted) for the corresponding period in 2020. In
addition to the operating performance previously explained above
and the increase in prospective projects expenses, the $156.3 million increase in net loss mainly
stems from the February 2021 Texas
Events, resulting in a net unfavourable impact of $81.3 million (refer to the "February 2021 Texas Events" section of the 2021
Annual Report for more information); the recognition of an
aggregate $112.6 million in
impairment charges through the Corporation's share of loss of the
Flat Top and Shannon joint venture facilities, at $53.8 million and $58.8
million, respectively; a $27.1 million increase in depreciation and
amortization, mainly attributable to the Energía Llaima and Curtis
Palmer acquisitions, the full year impact of Mountain Air and
Salvador acquired in 2020, and the
Griffin Trail and Hillcrest
commissioning in 2021; an unfavourable $26.8
million unrealized change in fair value of financial
instruments, mainly related to the increase in merchant power
curves for the Phoebe power hedge, partly offset by a favourable
change in foreign exchange forward curves, compared with the same
period in 2020; a $19.1 million
increase in finance costs mainly related to the Griffin Trail and
Hillcrest facilities, the Energía
Llaima Acquisition, and an increase in inflation compensation
interests on the Harrison Hydro real return bonds; and the
recognition of impairment charges related to the Phoebe solar
facility in Texas reflecting an
outlook of higher than expected congestion charges, to the
previously owned Energía Llaima investment in light of the purchase
price for the remaining interests, and to a minority equity
investment in France, totaling
$24.7 million, $6.3 million, and $5.9
million, respectively, compared with a $26.6 million impairment charge on the investment
in Energía Llaima in 2020. These items were partly offset by a
favourable $8.8 million movement
in the realized portion of financial instruments, mainly related to
the Phoebe basis hedge, compared with the same period in 2020; a
$24.1 million increase in other
income mainly related to the production tax credits and tax
attributes allocated to the tax equity investors at the Griffin
Trail wind facility, following its commissioning during the third
quarter; and a $45.1 million increase
in recovery of income tax, mainly related to the impacts of the
February 2021 Texas Events and the
reversal of deferred tax liabilities related to the Flat Top and
Shannon joint venture facilities, due to the projects' assets and
liabilities being classified as disposal groups held for sale,
partly offset by the tax attributes being allocated to tax equity
investors of the Griffin Trail and Hillcrest facilities commissioned in
2021.
1.
|
This is not a
recognized measure under IFRS and therefore may not be comparable
to those presented by other issuers. Please refer to the "Non-IFRS
Measures" section for more information.
|
CASH FLOW FROM OPERATING ACTIVITIES, FREE CASH
FLOW2 AND PAYOUT RATIO2
For the year ended December 31, 2021, cash flows from
operating activities totaled $265.5
million, compared with $235.1 million in the same period last year.
The increase relates primarily to the contribution from the Energía
Llaima, Licán and Curtis Palmer acquisitions in the second half of
2021, the Hillcrest and Griffin
Trail facilities commissioned in 2021, and the full year impact of
the Mountain Air and Salvador
acquisitions of 2020, a favourable $20.9
million change in the realized loss on the Phoebe basis
hedge, an increase in revenues from the hydroelectric facilities in
British Columbia explained by the
lower 2020 figures that included the impact of the curtailment
imposed by BC Hydro for five facilities, and an increase in
distributions from joint ventures and associates, primarily due to
a distribution received from Energía Llaima in the second quarter
of 2021. The increase was partially offset by the February 2021 Texas Events which contributed to a
$17.1 million decrease in cash flows
from operating activities.
The following table summarizes the Free Cash
Flow2 and Payout Ratio2 normalized to exclude
the impacts of the February 2021
Texas Events, for the year ended December
31, 2021.
Free Cash Flow and Payout
Ratio calculation1
|
Year ended
December 31
|
2021
|
February 2021 Texas
Events (9 days) 2
|
2021
Normalized
|
2020
|
2019
|
Free Cash
Flow1,2
|
92,315
|
15,789
|
108,104
|
93,260
|
93,311
|
|
|
|
|
|
|
Dividends declared on
common shares
|
132,229
|
—
|
132,229
|
125,543
|
95,046
|
Payout
Ratio1,2
|
143 %
|
(20)
%
|
122 %
|
135 %
|
102 %
|
1.
|
Free Cash Flow and
Payout Ratio are not recognized measures under IFRS and therefore
may not be comparable to those presented by other issuers. Please
refer to the "Non-IFRS Measures" section for more
information.
|
2.
|
For the year ended
December 31, 2021, the Free Cash Flow and Payout Ratio are
normalized to exclude the impacts of the February 2021 Texas
Events. Please refer to the "February 2021 Texas Events" section of
the 2021 Annual Report for more information.
|
For the year ended December 31, 2021, the dividends
on common shares declared by the Corporation amounted to 143% of
Free Cash Flow2. Excluding the impacts from the
February 2021 Texas Events, the
dividends on common shares declared by the Corporation amounted to
122% of Normalized Free Cash Flow2, compared with 135%
for the corresponding period last year.
2.
|
This is not a
recognized measure under IFRS and therefore may not be comparable
to those presented by other issuers. Please refer to the "Non-IFRS
Measures" section for more information.
|
UPDATE ON DEVELOPMENT
(As at
February 23, 2022)
On October 25, 2021,
Innergex and Hydro-Québec, completed the acquisition of Curtis
Palmer, a 60 MW run-of-river hydroelectric portfolio located in
Corinth, New York, consisting of
the 12 MW Curtis Mills and 48 MW Palmer Falls facilities ("Curtis
Palmer"). This joint acquisition is the first under the Strategic
Alliance formed by Innergex and Hydro-Québec in 2020. Innergex owns
indirectly a 50% interest in the Curtis Palmer facilities with
Hydro-Québec indirectly owning the remaining 50% interest. The
total consideration for this acquisition was US$321.6 million ($397.3
million), which includes a contingent consideration of
US$3.2 million ($3.9 million).
On December 28, 2021, the
Corporation completed the sale of its 51% interest in the Flat Top
wind facility ("Flat Top") for a nominal amount.
Construction continued at the 7.5 MW Innavik hydro project
in Quebec, Canada, which is
expected to be commissioned in late 2022. In France, at the Tonnerre standalone battery
storage project, construction activities are mostly completed,
commissioning and testing activities are ongoing. In the U.S.,
construction began at the Hale Kuawehi solar and battery storage
project with the commencement of civil works and construction of
roads and laydown areas.
Projects under development are progressing well with the
addition of 3 new development projects: in the U.S., the Boswell
Springs wind project and the Palomino solar project, along with the
France Auxy Bois Regnier wind project which obtained on
February 23, 2022 a 20-year power
purchase agreement with EDF-OA.
SUBSEQUENT EVENTS
Innergex has completed on January, 28, 2022 the
acquisition of the 50.6 MW San Andrés solar farm in Chile ("San Andrés"). The facility,
commissioned in 2014, is located in the Atacama Desert in northern
Chile. San Andrés was acquired for
a total consideration of US$25.8
million ($32.7 million), net
of cash acquired. The facility is expected to produce a gross
long-term average of approximately 118.9 GWh per year.
On February 3, 2022,
Innergex has entered into an agreement to acquire 100% of the
ordinary shares of Aela Generación S.A. and Aela Energía SpA
(together "Aela"), a 332 MW portfolio of three newly-built
operating wind assets in Chile,
for a purchase price of US$685.5 million ($870.6 million) (the "Aela Acquisition"),
including the assumption of US$385.5
million ($489.6 million) of
existing debt, subject to customary closing adjustments.
On February 10, 2022,
Innergex has entered into two foreign exchange forward contracts
with an aggregate notional amount of US$100.0 million ($126.8
million) to manage its exposure to exchange rate
fluctuations related to the purchase price. In addition, in order
to manage its exposure to the risk of increasing interest rates on
a portion of the expected refinancing of the non-recourse debt
assumed in the acquisition and at Innergex's existing Chilean
projects, Innergex has entered into two forward start interest rate
swaps on February 17 and February 18, 2022,
respectively, with an aggregate notional amount of US$172.8 million ($219.1
million).
With this new wind portfolio, Innergex will diversify its
geography and energy sources and more than double its installed
capacity in Chile, opening the way
to refinancing its entire Chilean portfolio to generate long-term
accretive value. The Acquisition is expected to close in Q2 2022
and is subject to the regulatory approval of the Chilean Antitrust
Agency (Fiscalía Nacional Económica), as well as customary closing
conditions.
As part of the public offering closed on February 22, 2022, the Corporation issued
9,718,650 common shares at a price per share of $17.75 for cash proceeds of $172.5 million. Concurrently with the closing of
the public offering, Hydro-Québec subscribed to 2,100,000 common
shares of the Corporation for cash proceeds of $37.3 million.
2021 GUIDANCE ACHIEVEMENT
In 2021, the Corporation exceeded its 2021 Growth Targets,
except being 3% lower in terms of Production.
|
2021
|
2020
|
|
Actual Normalized3
|
Target4
|
Actual1
|
Production
(GWh)2
|
9,055
|
+12
%
|
+15 %
|
8,074
|
Revenues
|
692,241
|
+13
%
|
+10 %
|
613,207
|
Adjusted
EBITDA2
|
470,670
|
+12
%
|
+10 %
|
422,109
|
Adjusted EBITDA
Proportionate2
|
578,472
|
+3
%
|
+2 %
|
560,328
|
Number of facilities
in operation
|
79
|
|
|
75
|
Net installed
capacity (MW)
|
3,101
|
|
|
2,742
|
1.
|
Results from
continuing operations unless otherwise indicated.
|
2.
|
These measures are
not recognized measures under IFRS and therefore may not be
comparable to those presented by other issuers. Production is a key
performance indicator for the Corporation that cannot be reconciled
with an IFRS measure. Please refer to the "Non-IFRS Measures"
section of this press release for more information.
|
3.
|
For the year ended
December 31, 2021, the Financial Performance and Operating Results
are normalized to exclude the impacts of the February 2021 Texas
Events. Please refer to the "February 2021 Texas Events" section of
the Annual Report for more information.
|
4.
|
Target revised in
November 2021. Please refer to the MD&A for the period ended
September 30, 2021 filed on November 9, 2021.
|
The financial targets were exceeded mainly due to the
following factors: the acquisitions achieved in 2021 (Energía
Llaima, Curtis Palmer and Licán); and the higher than
anticipated contribution from the recently
commissioned facilities (Yonne II, Hillcrest and Griffin Trail). The Production
target was not met mainly due to lower average wind regimes in
France and Quebec; lower average water flows in
British Columbia; and other
weather-related events.
2022 GROWTH TARGETS
|
2022
|
2021
|
|
Target
|
Actual
Normalized3
|
Production
(GWh)2
|
≈
|
+18 %
|
9,055
|
Revenues
|
≈
|
+16 %
|
692,241
|
Operating, general,
administrative and prospective projects expenses
|
≈
|
+18 %
|
221,571
|
Adjusted
EBITDA2
|
≈
|
+15 %
|
470,670
|
Adjusted EBITDA
Proportionate2
|
≈
|
+14 %
|
578,472
|
Number of facilities
in operation
|
|
82
|
79
|
Net installed
capacity (MW)
|
|
3,156
|
3,101
|
1.
|
Results from
continuing operations unless otherwise indicated.
|
2.
|
These measures are
not recognized measures under IFRS and therefore may not be
comparable to those presented by other issuers. Production is a key
performance indicator for the Corporation that cannot be reconciled
with an IFRS measure. Please refer to the "Non-IFRS Measures"
section of this press release for more information.
|
3.
|
For the year ended
December 31, 2021, the Financial Performance and Operating Results
are normalized to exclude the impacts of the February 2021 Texas
Events. Please refer to the "February 2021 Texas Events" section of
the 2021 Annual Report for more information.
|
The Corporation now presents its 2022 growth targets for
which it used certain assumptions to provide readers with an
indication of its business activities and operating performance.
These assumptions include a full year contribution of the
acquisitions completed in 2021 (Energía Llaima, Curtis Palmer and
Licán); a full year contribution of the facilities commissioned in
2021 (Yonne II, Hillcrest and
Griffin Trail); success in commissioning the Innavik hydro facility
(Q4 2022) and Tonnerre battery project (Q1 2022); average
hydrology, wind regimes and solar irradiation projections leading
to a 100% LTA target for all facilities; availability of capital
resources and timely performance by third parties of contractual
obligations; no significant event occurring outside the ordinary
course of business such as a natural disaster, pandemic or other
calamity; average merchant spot prices consistent with external
price curves and internal forecasts; no material changes in the
assumed U.S. dollar to Canadian dollar and Euro to Canadian dollar
exchange rate; no significant variability in interest rates; an
average inflation rate based on historical trend; and an increase
in salaries based on market average assumptions.
The 2022 growth targets do not take into consideration
potential acquisitions that could be achieved in 2022 nor the
potential impact of future waves of COVID-19. The 2022 growth
targets exclude the impact of the Aela Acquisition as well as the
shares issued to finance this future transaction. The guidance will
be revised upon closing of the Aela Acquisition.
These assumptions are based on information currently
available to the Corporation and this list of assumptions is not
exhaustive. These assumptions, although considered reasonable by
the Corporation on February 23, 2022,
may prove to be inaccurate. Important risks and uncertainties may
cause actual results or performance to be materially different from
the Corporation's expectations as set forth in this section. The
risks and uncertainties are referred to in the "Risks and
Uncertainties" section of the 2021 Annual Report.
STRATEGIC PLAN 2020-2025
Innergex has adopted a Strategic Plan for the period from
2020 to 2025. The success of this Strategic Plan will be evaluated
based on a set of qualitative and quantitative criteria. Success
will not be measured in terms of MW but on the Corporation's
ability to increase shareholder return while efficiently managing
its high-quality assets and successfully pursuing its
growth.
- Grow Responsibly: Focus growth on current markets and
target opportunities in neighbouring ones
- Build Expertise: Become an expert in deploying energy
storage technologies
- Optimize Operations: Leverage expertise and innovation to
maximize returns from our high-quality assets
- Diversify Activities: Increase diversification of the
Corporation's activities and assets
The targets provided in the MD&A for the period ended
September 30, 2021 are expected to
remain substantially the same despite lower financial results for
2021. The Adjusted EBITDA Proportionate is expected to achieve a
compound annual growth rate of approximately 9% by 2025 to
$870 million and the Free Cash Flow
per Share is expected to achieve a compound annual growth rate of
approximately 12% by 2025 to $0.95.
The following graphs present the targets for 2022 and
2025.
Innergex's continued growth will come from a balanced
strategy of developing greenfield projects with a deferred cash
contribution profile and strategic acquisitions in current markets
with nearer-term cash contributions. The projected figures above do
not take into consideration potential transactions or projects that
could be achieved or developed as part of the Strategic Alliance
with Hydro-Québec.
The Corporation presents the outlook for the 2020-2025
Strategic Plan to provide readers with an indication of its
business activities and operating performance. This outlook for the
2020-2025 Strategic Plan presented in this section is based on
certain assumptions, which include the realization of the growth
plan to reach 5,000 MW of gross installed capacity based on a
strategic mix of development activities and acquisitions of
operating assets; average hydrology, wind regimes and solar
irradiation projections leading to a 100% LTA target for all
facilities; successful renewal of PPAs taking into consideration
potential pressure on pricing; escalation on contractual PPAs;
increase in the investment in prospective expenses to meet growth
plan; no material changes in the industry's market conditions and
financial opportunities; no material adverse impacts to the
long-term investment and credit markets; sufficient human resources
to deliver service and execute the capital plan; favourable market
conditions for share issuance to support growth financing; no
significant variability in interest rates; average merchant spot
prices consistent with external price curves and internal
forecasts; no severe and prolonged economic downturn; continued
maintenance of information technology infrastructure and no
material breach of cybersecurity; no significant event occurring
outside the ordinary course of business such as a natural disaster,
pandemic or other calamity; no material changes in the assumed U.S.
dollar to Canadian dollar and Euro to Canadian dollar exchange
rate; an average inflation rate based on historical trend; and an
increase in salaries based on market average
assumptions.
These assumptions are based on information currently
available to the Corporation and this list of assumptions is not
exhaustive. These assumptions, although considered reasonable by
the Corporation on February 23, 2022,
may prove to be inaccurate. Important risks and uncertainties may
cause actual results or performance to be materially different from
the Corporation's expectations as set forth in this section. The
risks and uncertainties are referred to in the "Risks and
Uncertainties" section of the 2021 Annual
Report.
DIVIDEND DECLARATION
The Board of Directors has decided to maintain the annual
dividend at $0.72 per common share
for 2022, in light of the foreseeable growth plan both in terms of
acquisitions and greenfield development.
The following dividends will be paid by the Corporation on
April 15, 2022:
Date of
announcement
|
Record
date
|
Payment
date
|
Dividend per common
share
|
Dividend per Series
A
Preferred
Share
|
Dividend per Series C
Preferred Share
|
February 23,
2022
|
March 31,
2022
|
April 15,
2022
|
$0.180
|
$0.202750
|
$0.359375
|
NON-IFRS MEASURES
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 these
indicators are important, as they provide management and the reader
with additional information about Innergex's production and cash
generation capabilities, its ability to sustain current dividends
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,
Innergex's share of Adjusted EBITDA of joint ventures and
associates, Adjusted EBITDA Proportionate, Adjusted EBITDA Margin
Proportionate, Adjusted Net Earnings (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.
Production, Revenues, Adjusted EBITDA, and
corresponding Margin and Proportionate measures
References in this document to "Innergex's share of
Production of the joint ventures and associates" are to Innergex's
equity interest in the joint ventures' and associates'
Production.
References in this document to "Innergex's share of
Revenues of joint ventures and associates" are to Innergex's equity
interest in the joint ventures' and associates' Revenues.
References in this document to "Revenues Proportionate" are to
Revenues, plus Innergex's share of Revenues of the joint ventures
and associates, other income related to PTCs, and Innergex's share
of the operating joint ventures' and associates' other income
related to PTCs.
References in this document to "Adjusted EBITDA" are to
net earnings (loss), to which are added (deducted) income tax
expense (recovery), finance costs, depreciation and amortization,
impairment charges, other net income, share of (earnings) loss of
joint ventures and associates, and change in fair value of
financial instruments. References in this document to "Innergex's
share of Adjusted EBITDA of joint ventures and associates" are to
Innergex's equity interest in the joint ventures' and associates'
Adjusted EBITDA. References in this document to "Adjusted EBITDA
Proportionate" are to Adjusted EBITDA, plus Innergex's share of
Adjusted EBITDA of the joint ventures and associates, other income
related to PTCs, and Innergex's share of other income related to
PTCs of the joint ventures and associates.
References in this document to "Adjusted EBITDA Margin"
are to Adjusted EBITDA divided by revenues. References in this
document to "Adjusted EBITDA Margin Proportionate" are to Adjusted
EBITDA Proportionate, divided by Revenues Proportionate.
Innergex believes that the presentation of these measures
enhances the understanding of the Corporation's operating
performance. Readers are cautioned that Innergex's share of
Revenues of joint ventures and associates, and Revenues
Proportionate, should not be construed as an alternative to
Revenues, as determined in accordance with IFRS. Readers are also
cautioned that Adjusted EBITDA, Innergex's share of Adjusted EBITDA
of joint ventures and associates, Adjusted EBITDA Proportionate,
Adjusted EBITDA Margin, and Adjusted EBITDA Margin Proportionate,
should not be construed as an alternative to net earnings, as
determined in accordance with IFRS. Please refer to the "Financial
Performance and Operating Results" section for more
information.
|
Three months ended
December 31
|
Year ended
December 31
|
|
2021
|
2020
|
2021
|
2020
|
|
Production
(MWh)
|
Revenues
|
Adjusted
EBITDA
|
Production
(MWh)
|
Revenues
|
Adjusted
EBITDA
|
Production
(MWh)
|
Revenues
|
Adjusted
EBITDA
|
Production
(MWh)
|
Revenues
|
Adjusted
EBITDA
|
Consolidated1
|
2,583,157
|
202,388
|
137,311
|
2,186,961
|
167,927
|
117,830
|
9,055,215
|
747,208
|
525,637
|
8,073,914
|
613,207
|
422,109
|
Innergex's share of
joint ventures and associates:
|
|
|
|
|
|
|
|
|
|
|
|
|
Hydro3
|
55,997
|
7,507
|
5,029
|
129,076
|
14,413
|
10,354
|
481,505
|
50,547
|
38,547
|
582,738
|
64,395
|
49,826
|
Wind2
|
37,003
|
4,752
|
4,210
|
253,890
|
8,915
|
4,861
|
311,106
|
60,489
|
54,989
|
920,773
|
31,512
|
16,840
|
Solar3
|
—
|
—
|
—
|
3,431
|
455
|
240
|
5,540
|
885
|
554
|
12,715
|
1,875
|
1,076
|
|
93,000
|
12,259
|
9,239
|
386,397
|
23,783
|
15,455
|
798,151
|
111,921
|
94,090
|
1,516,226
|
97,782
|
67,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PTCs and Innergex's
share of PTCs generated:
|
|
|
|
|
|
|
|
|
|
|
|
|
Foard City
|
|
10,522
|
10,522
|
|
12,569
|
12,569
|
|
38,645
|
38,645
|
|
43,850
|
43,850
|
Griffin
Trail
|
|
5,882
|
5,882
|
|
—
|
—
|
|
9,339
|
9,339
|
|
—
|
—
|
Shannon
(50%)2
|
|
—
|
—
|
|
3,130
|
3,130
|
|
2,767
|
2,767
|
|
11,616
|
11,616
|
Flat Top
(51%)2
|
|
—
|
—
|
|
3,946
|
3,946
|
|
3,267
|
3,267
|
|
15,011
|
15,011
|
|
|
16,404
|
16,404
|
|
19,645
|
19,645
|
|
54,018
|
54,018
|
|
70,477
|
70,477
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proportionate
|
2,676,157
|
231,051
|
162,954
|
2,573,358
|
211,355
|
152,930
|
9,853,366
|
913,147
|
673,745
|
9,590,140
|
781,466
|
560,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin
|
|
|
67.8 %
|
|
|
70.2 %
|
|
|
70.3 %
|
|
|
68.8 %
|
Adjusted EBITDA
Margin Proportionate
|
|
|
70.5 %
|
|
|
72.4 %
|
|
|
73.8 %
|
|
|
71.7 %
|
1.
|
Some facilities are
treated as joint ventures and associates and accounted for using
the equity method; their revenues are not included in the
Corporation's consolidated revenues and, for consistency, their
electricity production figures have been excluded from production
and included in production proportionate.
|
2.
|
The results from the
Flat Top and Shannon joint venture facilities from April 1, 2021
onward were excluded due to the projects' assets and liabilities
being classified as disposal groups held for sale, following the
February 2021 Texas Events. Please refer to the "February 2021
Texas Events" section of the Annual Report for more
information.
|
3.
|
Innergex has
acquired, effective July 9, 2021, the remaining 50% interest in
Energía Llaima; therefore gaining control over the investee, which
triggered consolidation and concurrently results are excluded from
share of joint ventures.
|
Below is a reconciliation of the non-IFRS measures to
their closest IFRS measures:
|
Three months ended
December 31
|
Year ended
December 31
|
|
2021
|
2020
|
2021
|
2020
|
|
|
|
|
|
Revenues
|
202,388
|
167,927
|
747,208
|
613,207
|
Innergex's share of
revenues of joint ventures and associates
|
12,259
|
23,783
|
111,921
|
97,782
|
PTCs and Innergex's
share of PTCs generated
|
16,404
|
19,645
|
54,018
|
70,477
|
Revenues
Proportionate
|
231,051
|
211,355
|
913,147
|
781,466
|
|
|
|
|
|
Net earnings
(loss)
|
5,743
|
11,894
|
(185,394)
|
(29,111)
|
Income tax expense
(recovery)
|
37,158
|
7,357
|
(26,240)
|
18,897
|
Finance
costs
|
67,417
|
57,443
|
252,255
|
233,143
|
Depreciation and
amortization
|
77,748
|
58,465
|
255,640
|
228,526
|
Impairment of
long-term assets
|
12
|
26,659
|
36,986
|
26,659
|
EBITDA
|
188,078
|
161,818
|
333,247
|
478,114
|
Other net
income
|
(34,565)
|
(7,304)
|
(89,621)
|
(65,554)
|
Share of (earnings)
losses of joint ventures and associates
|
(791)
|
(13,874)
|
189,889
|
7,524
|
Change in fair value
of financial instruments
|
(15,411)
|
(22,810)
|
92,122
|
2,025
|
Adjusted
EBITDA
|
137,311
|
117,830
|
525,637
|
422,109
|
Innergex's share of
Adjusted EBITDA of joint ventures and associates
|
9,239
|
15,455
|
94,090
|
67,742
|
PTCs and Innergex's
share of PTCs generated
|
16,404
|
19,645
|
54,018
|
70,477
|
Adjusted EBITDA
Proportionate
|
162,954
|
152,930
|
673,745
|
560,328
|
|
|
|
|
|
Adjusted EBITDA
Margin
|
67.8 %
|
70.2 %
|
70.3 %
|
68.8 %
|
Adjusted EBITDA
Margin Proportionate
|
70.5 %
|
72.4 %
|
73.8 %
|
71.7 %
|
Adjusted Net (Loss) Earnings
References to "Adjusted Net (Loss) Earnings" are to net
earnings or losses of the Corporation, to which the following
elements are added (subtracted): unrealized portion of the change
in fair value of financial instruments; realized portion of the
Phoebe basis hedge, realized loss on the termination of interest
rate swaps, realized gain on foreign exchange forward contracts,
impairment charges, specific unusual or non-recurring events such
as the February 2021 Texas Events,
the net income tax expense (recovery) related to these items, and
the share of loss (income) of joint ventures and associates related
to the above items, net of related income tax.
The Adjusted Net (Loss) Earnings seeks to provide a
measure that eliminates the earnings impacts of certain derivative
financial instruments and non-recurring events, which do not
represent the Corporation's operating performance. Innergex
uses derivative financial instruments to hedge its
exposure to various risks. Accounting for derivatives requires that
all derivatives are marked-to-market. When hedge accounting is not
applied, changes in the fair value of the derivatives is recognized
directly in net earnings (loss). Such unrealized changes have no
immediate cash effect, may or may not reverse by the time the
actual settlements occur and do not reflect the Corporation's
business model toward derivatives, which are held for their
long-term cash flows, over the whole life of a project. In
addition, the Corporation uses foreign exchange forward contracts
to hedge its net investment in its French subsidiaries. Management
therefore believes realized gains (losses) on such contracts does
not reflect the operations of Innergex.
Innergex believes that the presentation of this measure
enhances the understanding of the Corporation's operating
performance. Readers are cautioned that Adjusted Net (Loss)
Earnings should not be construed as an alternative to net earnings,
as determined in accordance with IFRS. Please refer to the
"Operating Results" section for reconciliation of the Adjusted Net
(Loss) Earnings.
Below is a reconciliation of Adjusted Net (Loss) Earnings
to its closest IFRS measure:
|
Three months ended
December 31
|
Year ended
December 31
|
|
2021
|
2020
|
2021
|
2020
|
|
|
|
|
|
Net earnings
(loss)
|
5,743
|
11,894
|
(185,394)
|
(29,111)
|
Add (Subtract):
|
|
|
|
|
February 2021 Texas
Events:
|
|
|
|
|
Revenues
|
—
|
—
|
(54,967)
|
—
|
Power hedge
|
—
|
—
|
70,756
|
—
|
Share of loss of Flat
Top and Shannon
|
—
|
—
|
64,197
|
—
|
Share of impairment of
Flat Top and Shannon
|
—
|
—
|
112,609
|
—
|
Share of unrealized
portion of the change in fair value of financial instruments of
joint ventures and associates, net of related income tax
|
(377)
|
(7,935)
|
20,226
|
15,722
|
Unrealized portion of
the change in fair value of financial instruments
|
(15,751)
|
(21,125)
|
18,502
|
(8,329)
|
Impairment of
long-term assets
|
12
|
26,659
|
36,986
|
26,659
|
Realized (gain) loss
on termination of interest rate swaps
|
(377)
|
—
|
2,508
|
—
|
Realized (gain) loss
on the Phoebe basis hedge
|
(955)
|
133
|
(2,546)
|
19,586
|
Realized gain on
foreign exchange forward contracts
|
(2,193)
|
(150)
|
(4,074)
|
(1,730)
|
Income tax expense
(recovery) related to above items
|
3,924
|
3,514
|
(85,754)
|
(486)
|
Adjusted Net (Loss)
Earnings
|
(9,974)
|
12,990
|
(6,951)
|
22,311
|
Below is a reconciliation of Adjusted Net Loss adjustments
to each line item of the consolidated statements of
earnings:
|
Three months ended
December 31
|
Year ended
December 31
|
|
2021
|
2020
|
2021
|
2020
|
|
IFRS
|
Adj.
|
Non-IFRS
|
IFRS
|
Adj.
|
Non-IFRS
|
IFRS
|
Adj.
|
Non-IFRS
|
IFRS
|
Adj.
|
Non-IFRS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
202,388
|
—
|
202,388
|
167,927
|
—
|
167,927
|
747,208
|
(54,967)
|
692,241
|
613,207
|
—
|
613,207
|
Operating
expenses
|
42,555
|
—
|
42,555
|
36,510
|
—
|
36,510
|
149,106
|
—
|
149,106
|
131,442
|
—
|
131,442
|
General and
administrative expenses
|
12,813
|
—
|
12,813
|
9,979
|
—
|
9,979
|
45,098
|
—
|
45,098
|
42,948
|
—
|
42,948
|
Prospective projects
expenses
|
9,709
|
—
|
9,709
|
3,608
|
—
|
3,608
|
27,367
|
—
|
27,367
|
16,708
|
—
|
16,708
|
Adjusted
EBITDA
|
137,311
|
—
|
137,311
|
117,830
|
—
|
117,830
|
525,637
|
(54,967)
|
470,670
|
422,109
|
—
|
422,109
|
Finance
costs
|
67,417
|
—
|
67,417
|
57,443
|
—
|
57,443
|
252,255
|
—
|
252,255
|
233,143
|
—
|
233,143
|
Other net
income
|
(34,565)
|
2,193
|
(32,372)
|
(7,304)
|
150
|
(7,154)
|
(89,621)
|
4,074
|
(85,547)
|
(65,554)
|
1,730
|
(63,824)
|
Depreciation and
amortization
|
77,748
|
—
|
77,748
|
58,465
|
—
|
58,465
|
255,640
|
—
|
255,640
|
228,526
|
—
|
228,526
|
Impairment of
long-term assets
|
12
|
(12)
|
—
|
26,659
|
(26,659)
|
—
|
36,986
|
(36,986)
|
—
|
26,659
|
(26,659)
|
—
|
Share of (earnings)
losses of joint ventures and associates
|
(791)
|
519
|
(272)
|
(13,874)
|
10,228
|
(3,646)
|
189,889
|
(202,312)
|
(12,423)
|
7,524
|
(19,989)
|
(12,465)
|
Change in fair value
of financial instruments
|
(15,411)
|
17,083
|
1,672
|
(22,810)
|
20,992
|
(1,818)
|
92,122
|
(89,220)
|
2,902
|
2,025
|
(11,257)
|
(9,232)
|
Income tax expense
(recovery)
|
37,158
|
(4,066)
|
33,092
|
7,357
|
(5,807)
|
1,550
|
(26,240)
|
91,034
|
64,794
|
18,897
|
4,753
|
23,650
|
Net earnings (loss)
|
5,743
|
(15,717)
|
(9,974)
|
11,894
|
1,096
|
12,990
|
(185,394)
|
178,443
|
(6,951)
|
(29,111)
|
51,422
|
22,311
|
Free Cash Flow and Payout Ratio
References to "Free Cash Flow" are to cash flows from
operating activities before changes in non-cash operating working
capital items, less maintenance capital expenditures net of
proceeds from disposals, scheduled debt principal payments, the
portion of Free Cash Flow attributed to non-controlling interests,
and preferred share dividends declared, plus or minus other
elements that are not representative of the Corporation's long-term
cash-generating capacity, such as gains and losses on the Phoebe
basis hedge due to their limited occurrence, realized gains and
losses on contingent considerations related to past business
acquisitions, transaction costs related to realized acquisitions,
realized losses or gains on derivative financial instruments used
to hedge the interest rate on project-level debt or the exchange
rate on equipment purchases.
The Payout Ratio is a measure of the Corporation's ability
to sustain current dividends as well as its ability to fund its
growth. The Payout Ratio level reflects the Corporation's decision
to invest yearly in advancing the development of its Prospective
Projects, for which investments must be expensed as incurred. The
Corporation considers such investments essential to its long-term
growth and success, as it believes that the greenfield development
of renewable energy projects offers the greatest potential internal
rates of return and represents the most efficient use of
management's expertise and value-added skills. Innergex believes
that the presentation of this measure enhances the understanding of
the Corporation's cash generation capabilities, its ability to
sustain current dividends and its ability to fund its growth.
Readers are cautioned that Free Cash Flow should not be construed
as an alternative to cash flows from operating activities, as
determined in accordance with IFRS. Please refer to the "Free Cash
Flow and Payout Ratio" section for the reconciliation of Free Cash
Flow.
References to "Adjusted Free Cash Flow" are to Free Cash
Flow excluding prospective project expenses.
References to "Payout Ratio" are to dividends declared on
common shares divided by Free Cash Flow. Innergex believes that
this is a measure of its ability to sustain current dividends as
well as its ability to fund its growth.
References to "Adjusted Payout Ratio" are to dividends
declared on common shares divided by Adjusted Free Cash
Flow.
Free Cash Flow and Payout
Ratio calculation
|
Year ended
December 31
|
2021
|
February 2021 Texas
Events (9 days)5
|
2021
Normalized
|
2020
|
2019
|
|
|
|
|
|
|
Cash flows from
operating activities
|
265,498
|
17,093
|
282,591
|
235,108
|
240,065
|
Add (Subtract) the following
items:
|
|
|
|
|
|
Changes in non-cash
operating working capital items
|
21,455
|
—
|
21,455
|
7,765
|
(25,634)
|
Maintenance capital
expenditures, net of proceeds from disposals
|
(8,029)
|
—
|
(8,029)
|
(2,828)
|
(8,752)
|
Scheduled debt
principal payments
|
(160,973)
|
—
|
(160,973)
|
(151,623)
|
(128,691)
|
Free Cash Flow
attributed to non-controlling interests1
|
(25,076)
|
—
|
(25,076)
|
(13,491)
|
(12,679)
|
Dividends declared on
Preferred shares
|
(5,632)
|
—
|
(5,632)
|
(5,942)
|
(5,942)
|
Add (subtract) the following non-recurring
elements2:
|
|
|
|
|
|
Realized loss on
contingent considerations
|
547
|
—
|
547
|
3,021
|
—
|
Realized loss on
termination of interest rate swaps
|
2,508
|
—
|
2,508
|
—
|
4,145
|
Transaction costs
related to realized acquisitions
|
4,563
|
—
|
4,563
|
1,664
|
266
|
Realized (gain) loss
on the Phoebe basis hedge3
|
(2,546)
|
(1,304)
|
(3,850)
|
19,586
|
11,697
|
Income tax paid on
realized intercompany gain
|
—
|
—
|
—
|
—
|
10,594
|
Recovery of
maintenance capital expenditures and prospective project expenses
on sale of HS Orka, net of attribution to non-controlling
interests4
|
—
|
—
|
—
|
—
|
8,242
|
Free Cash
Flow5
|
92,315
|
15,789
|
108,104
|
93,260
|
93,311
|
|
|
|
|
|
|
Dividends declared on
common shares
|
132,229
|
—
|
132,229
|
125,543
|
95,046
|
Payout
Ratio5
|
143 %
|
(20) %
|
122 %
|
135 %
|
102 %
|
|
|
|
|
|
|
Adjust for the following items:
|
|
|
|
|
|
Prospective projects
expenses
|
|
|
27,367
|
16,708
|
12,905
|
Adjusted Free Cash
Flow
|
|
|
135,471
|
109,968
|
106,216
|
|
|
|
|
|
|
Adjusted Payout
Ratio
|
|
|
98 %
|
114 %
|
89 %
|
1.
|
The portion of Free
Cash Flow attributed to non-controlling interests is subtracted,
regardless of whether an actual distribution to non-controlling
interests is made, in order to reflect the fact that such
distributions may not occur in the period they are
generated.
|
2.
|
Non-recurring
elements, such as one-time transaction costs related to
acquisitions, refinancing activities, or fiscal strategies,
incurred for the purpose of improving the long-term cash generating
capacity of Innergex, are excluded from Free Cash Flow, as they are
deemed not to represent the long-term cash-generating capacity of
Innergex.
|
3.
|
Due to their limited
occurrence (maturity attained on December 31, 2021), gains and
losses on the Phoebe basis hedge are deemed not to represent the
long-term cash-generating capacity of Innergex.
|
4.
|
The sale of HS Orka
has allowed for the recovery of maintenance capital expenditures
and prospective project expenses incurred thereon since the
acquisition of the project in February 2018, totaling $5.7 million
and $9.6 million, respectively. An amount of $7.1 million was
deducted from the total recovery as it pertains to non-controlling
interests.
|
5.
|
For the year ended
December 31, 2021, the Free Cash Flow and Payout Ratio are
normalized to exclude the impacts of the February 2021 Texas
Events. Please refer to the "February 2021 Texas Events" section
for more information.
|
ADDITIONAL INFORMATION
Innergex's
2021 year end audited consolidated financial statements, the notes
thereto and the Management's Discussion and Analysis can be
obtained on SEDAR at www.sedar.com and in
the "Investors" section of the Corporation's website at
www.innergex.com.
CONFERENCE CALL AND WEBCAST
The
Corporation will hold a conference call and webcast on Thursday, February 24, 2022 at 10 AM (EST). Investors and financial analysts are
invited to access the conference by dialing 1 888 390-0605 or
416 764-8609 or via
https://bit.ly/3FiEiPx or the
Corporation's website at
www.innergex.com. Journalists as well as
the public may access this conference call via a listen mode only.
A replay of the conference call will be available after the event
on the Corporation's website.
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 currently consisting of interests
in 80 operating facilities with an aggregate net installed capacity
of 3,152 MW (gross 3,852 MW) and an energy storage capacity of
150 MWh, including 40 hydroelectric facilities, 32 wind farms and
8 solar farms. Innergex also holds interests in 12 projects
under development, 3 of which are under construction, with a net
installed capacity of 733 MW (gross 770 MW) and an energy storage
capacity of 329 MWh, as well as prospective projects at different
stages of development with an aggregate gross capacity totaling
7,122 MW. 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 growth targets, power production, prospective
projects, successful development, construction and financing
(including tax equity funding) of the projects under construction
and the advanced-stage prospective projects, sources and impact of
funding, project acquisitions, execution of non-recourse
project-level financing (including the timing and amount thereof),
and strategic, operational and financial benefits and accretion
expected to result from such acquisitions, business strategy,
future development and growth prospects (including expected growth
opportunities under the Strategic Alliance with Hydro-Québec),
business integration, governance, 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
targeted production, the estimated targeted revenues, targeted
Revenues Proportionate, targeted Adjusted EBITDA and targeted
Adjusted EBITDA Proportionate, targeted Free Cash Flow, targeted
Free Cash Flow per Share and intention to pay dividend quarterly,
the estimated project size, costs and schedule, including
obtainment of permits, start of construction, work conducted and
start of commercial operation for Development Projects and
Prospective Projects, the Corporation's intent to submit projects
under Requests for Proposals, the qualification of U.S. projects
for PTCs and ITCs and other statements that are not historical
facts. Such information is intended to inform readers of the
potential financial impact of expected results, of the expected
commissioning of Development Projects, of the potential financial
impact of completed and future acquisitions and of the
Corporation's ability to sustain current dividends and to fund its
growth. Such information may not be appropriate for other
purposes.
Forward-Looking Information is based on certain key
assumptions made by the Corporation, including, without
restriction, those concerning hydrology, wind regimes and solar
irradiation; performance of operating facilities, acquisitions and
commissioned projects; project performance; availability of capital
resources and timely performance by third parties of contractual
obligations; favourable market conditions for share issuance to
support growth financing; favourable economic and financial market
conditions; the Corporation's success in developing and
constructing new facilities; successful renewal of PPAs; sufficient
human resources to deliver service and execute the capital plan; no
significant event occurring outside the ordinary course of business
such as a natural disaster, pandemic or other calamity; continued
maintenance of information technology infrastructure and no
material breach of cybersecurity. Please refer to Section 5 -
Outlook of the 2021 Annual Report for details regarding the
assumptions used with respect to the 2022 growth targets and
outlook for the 2020-2025 Strategic Plan.
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-
and twelve-month periods ended
December 31, 2021.
SOURCE Innergex Renewable Energy Inc.