Innergex Renewable Energy (INE) Q3 2024 earnings summary

Executive summary

• Q3 2024 Adjusted EBITDA Proportionate was $196 million, down 3% year-over-year, with Free Cash Flow per Share at $0.35.

• Growth initiatives included project bids in British Columbia, new battery storage in Chile, and a 2.7 MW hydro acquisition.

• Major construction milestones included near-completion of Boswell Springs wind farm and progress on Hale Kuawehi solar-plus-storage.

• Renewed a 25-year PPA for Portneuf hydro facilities, supporting refinancing and liquidity.

• Commissioned Innavik hydro facility, replacing over 90% of diesel use in a northern community.

Financial highlights

• Q3 2024 revenues and PTCs were $258.6 million, down 11% year-over-year; operating income was $71.6 million, down from $99.8 million.

• Adjusted EBITDA Proportionate was $196 million, down 3% year-over-year; Free Cash Flow was $70.8 million ($0.35/share), down 16%.

• Free Cash Flow for trailing twelve months rose to $260.9 million, with payout ratio improving to 35% from 121%.

• Total debt stood at $6.4 billion, stable quarter-over-quarter, with available liquidity exceeding $500 million.

Outlook and guidance

• Full-year 2024 guidance reaffirmed: Adjusted EBITDA Proportionate of $725M–$775M and Free Cash Flow per Share of $0.70–$0.85, assuming long-term average production and 95% asset availability.

• Performance is tracking toward the lower end of guidance due to industry-wide wind resource issues.

• Robust capital deployment and a strong development pipeline support future growth.