Innergex confirms 2024 outlook despite Q2 results

Canada’s Innergex Renewable Energy Inc (TSE:INE) saw its earnings decline in the second quarter of 2024 but committed to reaching its full-year goals as it plans to keep its focus on executing a “disciplined growth strategy.”

The renewable power producer posted an 8% year-on-year decrease in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to CAD 172.9 million (USD 125.9m/EUR 115.2m) after revenues and production tax credits slipped by 4%. On a proportionate basis, adjusted EBITDA amounted to CAD 183.9 million, down 8% from a year earlier, the company’s financial report showed on Wednesday.

Innergex explained that the trimester was marked by abnormally lower hydro, wind and solar resources in some of the regions it operates. Specifically, wind speeds were below average regimes, water flows declined in British Columbia, while solar photovoltaic (PV) plants in Texas and Chile were affected by lower irradiation and economic curtailments.

As a result, the company’s bottom line contracted, as shown in the table below.

The deteriorated resource conditions in several regions affected the first-half performance of Innergex, as well. “However, our ability to maintain high asset availability, to remain efficient in our operations and to pursue our disciplined approach towards capital management support reaffirming our financial guidance for 2024,” said CEO Michel Letellier.

The Canadian firm still expects adjusted EBITDA proportionate to be in the range of CAD 725 million-775 million in the full year, assuming production at 100% of the long-term average (LTA) target as well as a 95% asset availability.

(CAD 1.0 = USD 0.728/EUR 0.666)

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