Boralex books decreased Q2 profit as sales drop

Canadian renewable power producer Boralex Inc (TSE:BLX) saw its second-quarter net profit slip to CAD 17 million (USD 12.4m/EUR 11.3m) as revenues from energy sales were hit by decreased power output.

The company closed the April-June trimester with a net attributable profit of CAD 11 million, down from CAD 16 million a year back, its financial report showed on Wednesday. At CAD 180 million, revenues from energy sales and feed-in premium declined by 14% in annual terms due to the decreased power production and lower selling prices in France.

Meanwhile, the company’s strategy to optimise power selling prices, coupled with the commissioning of new plants in France and higher contribution from joint ventures in North America, had a positive effect on earnings before interest, tax, depreciation, and amortisation (EBITDA). The result improved by 9% year-on-year, coming at CAD 130 million.

“We are pursuing our efforts to maintain strict financial discipline, as evidenced by our strong balance sheet and over $620 million in available cash resources and authorized financing,” said CEO Patrick Decostre.

During the second quarter, the renewable energy plants owned by Boralex produced 1,323 GWh of electricity, which was 2% less than the output recorded a year back. The drop came mostly as a result of unfavourable weather conditions and more extensive power curtailments in France.

At the end of June, the Canadian firm had 6.8 GW of wind, solar and energy storage projects in its development pipeline.

(CAD 1.0 = USD 0.730/EUR 0.662)

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