Innergex Renewable Energy (INE) Q2 2024 earnings summary

Executive summary

• Q2 2024 production was 91% of long-term average, impacted by below-average wind, lower irradiance, and curtailments, but offset by strong hydro in Quebec and Chile and higher wind in the U.S. and Chile.

• Adjusted EBITDA proportionate was $184M, down 8% year-over-year, with Free Cash Flow per Share up 181% to $0.26.

• Major milestones included commissioning the 35 MW/175 MWh San Andrés BESS in Chile, advancing Boswell and Hale Kuawehi projects, and signing 30-year, CPI-indexed PPAs for 400 MW in Quebec.

• Portfolio diversification by geography and technology, and disciplined growth strategy, are key to mitigating resource risk.

• Texas portfolio de-risked by removing the last power hedge and selling minority interests, supporting deleveraging.

Financial highlights

• Q2 2024 consolidated revenues and PTCs were $260M, down 4% year-over-year; net earnings were $23M, compared to $25M in Q2 2023.

• Adjusted EBITDA proportionate was $184M, down 8% year-over-year; Free Cash Flow per Share was $0.26, up from $0.09 in Q2 2023.

• Payout ratio for the trailing twelve months was 40%, down from 127% a year ago.

• Total debt at quarter-end was ~$6.4B, down from Q1 2024, mainly due to Texas asset de-leveraging.

• Net earnings margin for Q2 2024 was 8.8%.

Outlook and guidance

• 2024 Adjusted EBITDA proportionate guidance reaffirmed at $725M–$775M; Free Cash Flow per Share guidance at $0.70–$0.85.

• CapEx budget for 2024 is fully funded; no material changes to full-year CapEx outlook.

• Growth strategy focuses on responsible expansion, energy storage expertise, and asset diversification.

• Expect more growth in 2025 as new projects come online.