Northland Power issues Coronavirus update

In: Windfarms
Northland Power Inc. has issued an update on the coronavirus (COVID-19) pandemic’s impacts on its operations.

From a financial perspective, Northland stated it has ample liquidity, a strong balance sheet and given the relative stability of its revenue and free cash flow profile, the Company currently does not anticipate changes to its 2020 financial guidance as a result of COVID-19.

In response to the outbreak of COVID-19, Northland activated its crisis response plans at all of its sites and offices around the world. The Company implemented preventive measures including restricting business travel and shifting the Company's corporate and regional offices to work from home arrangements where possible. At the Company's facilities and job sites, increased screening procedures have been implemented, along with visitor restrictions, directives regarding social distancing, and routine temperature checks for all employees to ensure a safe environment for operations.

Currently, all of Northland’s facilities remain unimpacted by COVID-19 and are operating normally. However, the situation is very fluid, and the Company continues to monitor events and government directives and their potential impacts. The Company will pursue mitigating actions as necessary and available to ensure normal operations.

While the offshore wind farms are contracted, there is some limited exposure to the wholesale market price. If market prices persist lower than forecast prices for an extended period, this could impact revenues. To date, the impacts of lower than forecast market pricing have been offset by higher than expected production.

Northland stated that it continues to monitor the global COVID-19 situation very closely and is taking steps to ensure that its facilities and operations continue as normal as possible. The Company will provide updates on its operations with our first quarter results in early May 2020.

The company also announced the acquisition of the
NaiKun offshore wind farm from NaiKun Wind Energy Group Inc. The Project is located in the Hecate Straight off the coast of British Columbia, Canada and is in early stages of development.

Upon successful completion of the acquisition, the Naikun Group will no longer be involved with the development and operations of the Project and Northland will be responsible for all aspects of the project moving forward. Northland will work closely with the Haida Nation to explore the Project details and potential involvement in the Project.

“Northland can apply both its global offshore wind experience and long track record developing Canadian power projects to this Project,”
said Mike Crawley, President and Chief Executive Officer of Northland Power. “However, before anything else happens we will be reaching out to the Haida Nation to discuss the Project and how it could potentially move forward.”

The addition of these projects will bolster Northland’s offshore wind portfolio, which encompasses over 1.2 GW of operating offshore wind in the North Sea, and additional development projects in Taiwan and Japan. The company also recently signed an agreement to acquire Dado Ocean Windfarm Co., Ltd. (Dado Ocean), a development company with multiple early stage offshore wind development sites near Chodo Island, off the south coast of South Korea.

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