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Northland sales spike from wind

By: Tom Russell 22/02/2019 Northland Power

General Windfarms

Northland Power Inc. (Northland) has reported its financial results for the final quarter 2018. The company develops, builds, owns and operates clean and green power projects, including offshore wind farms.

Sales increased 13% from $1.4 billion in 2017 to $1.6 billion and gross profit increased 17% to $1.4 billion. Northland attributed this to all of Nordsee One offshore wind farm's turbines producing power in 2018, higher wholesale market prices at Gemini and higher production at Thorold and North Battleford.

Adjusted EBITDA increased 17% from $765 million in 2017 to $891 million in 2018 and net income increased 47% from 2017 to $406 million.

Northland owns or has an economic interest in 2,429 MW (net 2,014 MW) of operating generating capacity and 269 MW of generating capacity under construction. This includes the Deutsche Bucht offshore wind project in the North Sea, in addition to its 60% equity stake in the three 1,044 MW Hai Long projects under development in Taiwan.

Northland stated that the Deutsche Bucht offshore wind project is progressing according to schedule and is on budget. As of today’s date, offshore installation of 31 monopile foundations was completed, with the two mono bucket foundations scheduled to be installed with the balance of plant during 2019. Project completion is expected by the end of 2019 with the project expected to add to free cash flow in 2020.

“2018 was a significant year for Northland. We continued to operate safely and efficiently, achieving strong growth in free cash flow and adjusted EBITDA,” said Mike Crawley, President and Chief Executive Officer of Northland. “Construction of Deutsche Bucht project remains on time and on budget, and we also remain well-positioned for continued growth. Our expansion into Asia has gained further traction, with the first of the three Hai Long offshore wind projects securing all approvals and permits. The next step for this 300 MW project will be executing its PPA.”

Electricity production, including pre-completion production, decreased 45 GWh (or 4%) compared to the same quarter of 2017 primarily due to lower wind resource in the North Sea, partially offset by the effect of all of Nordsee One’s turbines producing power in 2018, whereas the project was under construction in 2017.

In the last quarter of 2018, offshore wind sales Northland record a sales and adjusted an EBITDA of $220.9 million and $132.8 million. A decrease of $12.6 million and $11.7 million, respectively, compared to the same quarter of 2017. This attributed to a change in an accounting estimate at Gemini in the quarter totalling €10.2 million (or $9.2 million at Northland’s interest) to account for a lower subsidy as a result of a higher than expected average wholesale market price for the year. The change in estimate did not affect the full year results. Foreign exchange rate fluctuations resulted in $2.2 million higher revenue compared to the same quarter of 2017.

For more information on corporate activity in offshore wind, click here.

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Northland sales spike from wind

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