Innergex Renewable Energy (INE) Q3 2024 earnings summary

Executive summary

• Q3 2024 was impacted by weak natural resources, resulting in lower generation and EBITDA, but asset availability remained high and operational execution was strong.

• Diversified growth strategy advanced with new project bids in British Columbia, battery storage expansion in Chile, and acquisition of a 2.7 MW hydro facility in Chile.

• Significant progress on construction and commissioning of Boswell Springs wind farm and Hale Kuawehi solar-plus-storage project.

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

• Transition in board leadership with Monique Mercier appointed as new chair.

Financial highlights

• Q3 2024 Adjusted EBITDA Proportionate was $196 million, down 3% year-over-year; Free Cash Flow per Share was $0.35, down 16% year-over-year.

• Revenues and Production Tax Credits for Q3 2024 were $258.6 million, down 11% year-over-year; operating income was $71.6 million, down from $99.8 million.

• Net earnings for Q3 2024 were $7.9 million, up from $4.4 million in Q3 2023; Adjusted Net Earnings were $11.3 million, up from $5.2 million.

• Free Cash Flow for trailing twelve months rose to $260.9 million from $121.2 million; payout ratio improved 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 $725 million–$775 million and Free Cash Flow per Share of $0.70–$0.85, tracking toward the lower end due to industry-wide wind resource issues.

• Corporate priorities include advancing construction, bidding over 500 MW in RFPs, and strengthening financial flexibility.

• Robust capital deployment environment and strong industry tailwinds expected to provide significant growth opportunities.