Innergex Renewable Energy (INE) Q2 2024 earnings summary

Executive summary

• Asset availability remained high at 96% despite below-average hydro, wind, and solar resources, reflecting strong operational discipline and portfolio management.

• Portfolio diversification by geography and technology continues to be a strategic focus, with active participation in RFPs and disciplined bidding.

• Key operational milestones included commissioning the 35 MW/175 MWh San Andrés BESS project in Chile and advancing construction at Boswell Springs and Hale Kuawehi.

• Major contracts signed include 400 MW in Quebec with 30-year CPI-indexed PPAs and a 25-year PPA renewal for Portneuf hydro facility.

• Portfolio management activities, such as the Texas transaction, have enhanced liquidity, reduced risk exposure, and generated US$185.7 million in equity consideration.

Financial highlights

• Adjusted EBITDA Proportionate was $184 million (CAD 184 million), down 8% year-over-year, mainly due to lower production from higher-priced assets and increased corporate expenses.

• Free Cash Flow per share for the trailing twelve months ended June 30, 2024, was $1.35, up from $0.57 a year ago; Q2 2024 Free Cash Flow per share was $0.26.

• Total debt at quarter-end was approximately $6.4 billion, down from $6.5 billion in Q1 2024, reflecting de-leveraging from the Texas asset sale.

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

• Net earnings for Q2 2024 were $23 million, compared to $24.8 million in Q2 2023.

Outlook and guidance

• Full-year 2024 guidance reaffirmed: Adjusted EBITDA Proportionate expected at $725–775 million and Free Cash Flow per share at $0.70–0.85, assuming 100% of LTA production and 95% asset availability.

• New projects coming online in 2024 are expected to drive further growth in 2025.

• CapEx for 2024 is fully funded, with no material changes to the outlook.