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TORONTO, Feb. 23, 2023 (GLOBE NEWSWIRE) -- Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) reported today financial results for the three months and year ended December 31, 2022. All dollar amounts set out herein are in thousands of Canadian dollars, unless otherwise stated.
“Strong performance across all our facilities drove superior financial results in 2022, allowing the Company to achieve the upper end of our 2022 financial guidance ranges,” said Mike Crawley, Northland’s President and Chief Executive Officer. “De-carbonization and energy security imperatives opened up new growth opportunities for Northland as we expanded our offshore wind and onshore renewables pipelines including in Canada with our acquisition of a 1.6GW Alberta solar development portfolio and our lead participation in a contracted 250MW battery storage project in Ontario. We continue to focus more towards project execution as large projects within our growth pipeline progress to construction and operations. As always, we strive to continually improve across all key metrics with none being more important than the health and safety of our employees.”
Fourth Quarter and Full-Year 2022 Financial Results
Financial Results
The Company’s strong performance through the year contributed to full-year financial results that were at the upper end of the guidance range with full-year Adjusted EBITDA of nearly $1.4 billion, setting a record level for Northland.
Sales and net income, as reported under IFRS, include consolidated results of entities not wholly owned by Northland, whereas non-IFRS financial measures include Northland’s proportionate ownership interest.
| Summary of Consolidated Results | ||||||||||||
| (in thousands of dollars, except per share amounts) | Three months ended December 31, | Year ended December 31, | ||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| FINANCIALS | ||||||||||||
| Sales | $ | 641,115 | $ | 640,090 | $ | 2,448,815 | $ | 2,093,255 | ||||
| Gross profit | 573,571 | 579,878 | 2,178,389 | 1,879,762 | ||||||||
| Operating income | 269,195 | 301,074 | 1,051,307 | 785,366 | ||||||||
| Net income (loss) | 323,922 | 129,528 | 955,457 | 269,879 | ||||||||
| Net income (loss) attributable to common shareholders | 278,898 | 103,893 | 827,733 | 189,559 | ||||||||
| Adjusted EBITDA (a non-IFRS measure) | 353,070 | 363,648 | 1,398,176 | 1,137,004 | ||||||||
| Cash provided by operating activities | 550,689 | 559,368 | 1,832,983 | 1,609,295 | ||||||||
| Adjusted Free Cash Flow (a non-IFRS measure) | 40,529 | 182,012 | 460,892 | 386,366 | ||||||||
| Free Cash Flow (a non-IFRS measure) | 15,883 | 156,341 | 380,472 | 307,401 | ||||||||
| Cash dividends paid | 51,337 | 44,688 | 196,845 | 172,755 | ||||||||
| Total dividends declared (1) | $ | 74,172 | $ | 68,001 | $ | 284,582 | $ | 264,200 | ||||
| Per Share | ||||||||||||
| Weighted average number of shares - basic (000s) | 246,378 | 226,568 | 236,157 | 218,861 | ||||||||
| Net income (loss) attributable to common shareholders - basic and diluted | $ | 1.12 | $ | 0.45 | $ | 3.46 | $ | 0.82 | ||||
| Adjusted Free Cash Flow - basic (a non-IFRS measure) | $ | 0.16 | $ | 0.80 | $ | 1.95 | $ | 1.77 | ||||
| Free Cash Flow - basic (a non-IFRS measure) | $ | 0.06 | $ | 0.69 | $ | 1.61 | $ | 1.40 | ||||
| Total dividends declared | $ | 0.30 | $ | 0.30 | $ | 1.20 | $ | 1.20 | ||||
| ENERGY VOLUMES | ||||||||||||
| Electricity production in gigawatt hours (GWh) | 3,009 | 2,828 | 10,139 | 8,757 | ||||||||
| (1) Represents total dividends paid to common shareholders including dividends in cash or in shares under the DRIP. | ||||||||||||
Fourth Quarter Results Summary
Offshore wind facilities
Electricity production for the three months ended December 31, 2022, increased 6% or 86GWh compared to the same quarter of 2021, primarily due to higher wind resource, higher turbine availability at Nordsee One due to the completion of the RSA replacement campaign ahead of schedule and fewer uncompensated grid outages at the German facilities, partially offset by higher unpaid curtailments related to negative prices in Germany.
Sales of $339 million for the three months ended December 31, 2022, increased 2% or $5 million compared to the same quarter of 2021, primarily due to higher market prices and electricity production across all offshore wind facilities, partially offset by the foreign exchange rate fluctuations due to weakening of the Euro. Adjusted Free Cash Flow and Free Cash Flow are largely hedged and therefore virtually unaffected by foreign exchange rate fluctuations.
Adjusted EBITDA of $221 million for the three months ended December 31, 2022, increased 7% or $15 million compared to the same quarter of 2021, due to higher wind resource, higher market prices across all offshore wind facilities and fewer unpaid curtailments related to grid outages in Germany, partially offset by foreign exchange rate fluctuations due to weakening of the Euro.
An important indicator for performance of offshore wind facilities is the current and historical average power production of the facility. The following tables summarize actual electricity production and the historical average, high and low for the applicable operating periods of each offshore facility:
| Three months ended December 31, | 2022 (1) | 2021 (1) | Historical Average (2) | Historical High (2) | Historical Low (2) | ||||
| Electricity production (GWh) | |||||||||
| Gemini | 794 | 743 | 775 | 824 | 739 | ||||
| Nordsee One | 362 | 333 | 332 | 362 | 298 | ||||
| Deutsche Bucht | 326 | 320 | 314 | 326 | 300 | ||||
| Total | 1,482 | 1,396 | |||||||
| (1) Includes GWh produced and attributed to paid curtailments. | |||||||||
| (2) Represents the historical power production for the period since the commencement of commercial operation of the respective facility (2017 for Gemini and Nordsee One, and 2020 for Deutsche Bucht) and excludes unpaid curtailments. | |||||||||
Regulatory Market Price Cap Changes Effective from December 1, 2022 to June 30, 2023
In September 2022, in response to the surge in wholesale electricity markets, the EU Council established a cap on market revenues on renewable energy producers effective from December 1, 2022, to June 30, 2023 (the “EU price cap”). EU member states have flexibility to adapt the EU price cap for their markets.
In January 2023, the mechanism for the EU price cap was finalized by the majority of member states. Gemini will be eligible to receive merchant revenue of up to €211/MWh and Nordsee One and Deutsche Bucht will be eligible to receive merchant revenue up to €30/MWh above their respective FIT plus 6% of the wholesale price. In both countries, only 10% of any revenue above the cap can be earned and retained by the facilities.
Onshore renewable facilities
Electricity production was 6% or 34GWh higher than the same quarter of 2021, due to higher wind resource across all onshore facilities, partially offset by lower solar resource at the Spanish facilities.
Sales of $132 million were 16% or $19 million higher than the same quarter of 2021, primarily due to the increased contribution from the Spanish portfolio and taking into account the increase in 2022 posted prices in the current regulatory period in Spain. Effective mid-2022, these regulatory amendments raised the posted price from €49/MWh to €122/MWh, retroactive from January 1, 2022, thus allowing generation facilities to realize higher sales in 2022.
Adjusted EBITDA of $96 million was higher than the same quarter of 2021. Excluding the contribution from the Spanish portfolio, sales and Adjusted EBITDA in the fourth quarter would have been 4% and 4% higher, respectively, compared to the same quarter of 2021, primarily due to higher wind and solar resource.
Efficient natural gas facilities
Electricity production increased 7% or 60GWh compared to the same quarter of 2021, due to higher market demand.
Sales of $111 million decreased 13% or $17 million compared to the same quarter of 2021, primarily due to the sale of Iroquois Falls.
Adjusted EBITDA of $49 million decreased 41% or $34 million compared to the same quarter of 2021, primarily due to the sale of Iroquois Falls.
Utility
Sales and Adjusted EBITDA of $64 million and $27 million, respectively, increased 9% or $5 million and 13% or $3 million compared to the same quarter of 2021, largely due to rate escalations, driven by a higher Colombian producer price index, positively affecting EBSA’s financial performance, partially offset by foreign exchange fluctuations due to weakening of Colombian Peso.
In December 2021, Northland restructured and upsized EBSA’s long-term, non-recourse financing (the “EBSA Facility”), resulting in $84 million of incremental cash proceeds to Northland, net of closing costs (the “EBSA Refinancing”). The upsizing of the EBSA Facility was completed on the basis of growth in EBSA’s projected EBITDA growth for 2022, based on increases in the rate base. Net upsizing proceeds of $47 million, in excess of EBSA’s expansionary capital expenditure needs were included in Adjusted Free Cash Flow and Free Cash Flow for the year ended December 31, 2022.
Consolidated statement of income (loss)
General and administrative (“G&A”) costs of $25 million in the fourth quarter increased 15% or $3 million compared to the same quarter of 2021, primarily due to personnel costs and other costs supporting Northland’s global growth, in-line with management’s expectations.
Development costs of $25 million decreased 8% or $2 million compared to 2021, primarily due to higher capitalization of development cost relating to development projects, as a result of projects advancing to required milestones.
Net finance costs of $87 million in the fourth quarter decreased 13% or $13 million compared to the same quarter of 2021, primarily due to scheduled repayments on facility-level loans.
Fair valuegainon derivative contracts was $141 million in the fourth quarter primarily due to net movement in the fair value of derivatives related to commodity, interest rates and foreign exchange contracts.
Foreign exchangegain of $69 million in the fourth quarter was primarily due to unrealized gain from fluctuations in the closing foreign exchange rates.
Netincome of $324 million in the fourth quarter increased by $194 million compared to the same quarter of 2021, primarily as a result of the factors described above.
Adjusted EBITDA
The following table reconciles net income (loss) to Adjusted EBITDA:
| Three months ended December 31, | Year ended December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net income (loss) | $ | 323,922 | $ | 129,528 | $ | 955,457 | $ | 269,879 | |||||||
| Adjustments: | |||||||||||||||
| Finance costs, net | 86,578 | 99,611 | 323,632 | 342,417 | |||||||||||
| Gemini interest income | 2,265 | 3,843 | 13,065 | 15,810 | |||||||||||
| Acquisition costs | 138 | 1,659 | 895 | 7,666 | |||||||||||
| Provision for (recovery of) income taxes | 70,990 | 79,888 | 304,662 | 153,352 | |||||||||||
| Depreciation of property, plant and equipment | 146,645 | 155,356 | 571,090 | 612,755 | |||||||||||
| Amortization of contracts and intangible assets | 13,966 | (5,594 | ) | 53,611 | 23,284 | ||||||||||
| Fair value (gain) loss on derivative contracts | (147,414 | ) | (78,047 | ) | (482,351 | ) | (153,536 | ) | |||||||
| Foreign exchange (gain) loss | (69,073 | ) | 29,429 | (41,792 | ) | 81,318 | |||||||||
| Impairment loss | — | — | — | 29,981 | |||||||||||
| Elimination of non-controlling interests | (73,692 | ) | (74,593 | ) | (272,407 | ) | (260,567 | ) | |||||||
| Finance lease (lessor) | (1,511 | ) | (1,113 | ) | (6,352 | ) | (7,137 | ) | |||||||
| Others(1) | 256 | 23,681 | (21,334 | ) | 21,782 | ||||||||||
| Adjusted EBITDA | $ | 353,070 | $ | 363,648 | $ | 1,398,176 | $ | 1,137,004 | |||||||
| (1) Others primarily include share of results from equity investments, loss (gain) on sale of assets and share of joint venture project development costs. | |||||||||||||||
Adjusted EBITDA of $353 million for the three months ended December 31, 2022, decreased 3% or $11 million compared to the same quarter of 2021. The significant factor decreasing Adjusted EBITDA includes:
Factors partially offsetting the decrease in Adjusted EBITDA were:
Adjusted Free Cash Flow and Free Cash Flow
The following table reconciles cash flow from operations to Adjusted Free Cash Flow and Free Cash Flow:
| Three months ended December 31, | Year ended December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Cash provided by operating activities | $ | 550,689 | $ | 559,368 | $ | 1,832,983 | $ | 1,609,295 | |||||||
| Adjustments: | |||||||||||||||
| Net change in non-cash working capital balances related to operations | (141,244 | ) | (111,986 | ) | (289,875 | ) | (292,499 | ) | |||||||
| Non-expansionary capital expenditures | (10,675 | ) | (7,734 | ) | (56,248 | ) | (40,558 | ) | |||||||
| Restricted funding for major maintenance, debt and decommissioning reserves | (6,531 | ) | 2,294 | (17,857 | ) | (7,505 | ) | ||||||||
| Interest | (112,927 | ) | (100,842 | ) | (336,356 | ) | (277,908 | ) | |||||||
| Scheduled principal repayments on facility debt | (439,185 | ) | (278,667 | ) | (839,614 | ) | (635,901 | ) | |||||||
| Funds set aside (utilized) for scheduled principal repayments | 170,661 | 119,951 | — | 635 | |||||||||||
| EBSA Refinancing proceeds, net of growth capital expenditures | 20,078 | 3,827 | 46,974 | 3,827 | |||||||||||
| Preferred share dividends | (2,954 | ) | (2,710 | ) | (11,206 | ) | (10,811 | ) | |||||||
| Consolidation of non-controlling interests | (31,707 | ) | (40,240 | ) | (75,217 | ) | (90,022 | ) | |||||||
| Investment income(1) | 12,214 | 4,750 | 24,880 | 20,153 | |||||||||||
| Proceeds under NER300 and warranty settlement at Nordsee One | 14,530 | 10,764 | 70,317 | 38,636 | |||||||||||
| Others(2) | (7,066 | ) | (2,434 | ) | 31,691 | (9,941 | ) | ||||||||
| Free Cash Flow | $ | 15,883 | $ | 156,341 | $ | 380,472 | $ | 307,401 | |||||||
| Add back: Growth expenditures | 24,646 | 25,671 | 80,420 | 78,965 | |||||||||||
| Adjusted Free Cash Flow | $ | 40,529 | $ | 182,012 | $ | 460,892 | $ | 386,366 | |||||||
| (1) Investment income includes Gemini interest income. | |||||||||||||||
| (2) Others mainly include effect of foreign exchange rates and hedges, Nordsee One interest on shareholder loans, share of joint venture project development costs, acquisition costs, lease payments, interest income, and other non-cash expenses adjusted in working capital excluded from Free Cash Flow in the period. | |||||||||||||||
Adjusted Free Cash Flow of $41 million for the three months ended December 31, 2022, was 78% or $141 million lower than the same quarter of 2021.
The significant factors decreasing Adjusted Free Cash Flow were:
The factor partially offsetting the decrease in Adjusted Free Cash Flow was:
Free Cash Flow, which includes growth expenditures, totaled $16 million for the three months ended December 31, 2022, and was 90% or $140 million lower than the same quarter of 2021, due to the same factors as Adjusted Free Cash Flow.
The following table reconciles Adjusted EBITDA to Adjusted Free Cash Flow.
| Three months ended December 31, | Year ended December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Adjusted EBITDA | $ | 353,070 | $ | 363,648 | $ | 1,398,176 | $ | 1,137,004 | |||||||
| Adjustments: | |||||||||||||||
| Scheduled debt repayments | (225,131 | ) | (128,450 | ) | (684,630 | ) | (507,759 | ) | |||||||
| Interest expense | (37,235 | ) | (61,992 | ) | (220,347 | ) | (243,597 | ) | |||||||
| Current taxes | (70,309 | ) | (32,205 | ) | (192,953 | ) | (74,957 | ) | |||||||
| Non-expansionary capital expenditure | (9,266 | ) | (7,051 | ) | (48,094 | ) | (36,695 | ) | |||||||
| Utilization (funding) of maintenance and decommissioning reserves | (6,092 | ) | 2,667 | (16,550 | ) | (6,195 | ) | ||||||||
| Lease payments, including principal and interest | (2,996 | ) | (1,570 | ) | (10,353 | ) | (7,169 | ) | |||||||
| Preferred dividends | (2,954 | ) | (2,710 | ) | (11,206 | ) | (10,811 | ) | |||||||
| Foreign exchange hedge gain (loss) | (18,730 | ) | 10,844 | 37,486 | 23,053 | ||||||||||
| Proceeds under NER300 and warranty settlement at Nordsee One | 12,349 | 9,956 | 59,769 | 33,648 | |||||||||||
| EBSA Refinancing proceeds, net of growth capital expenditures | 20,078 | 3,827 | 46,974 | 3,827 | |||||||||||
| Others(1) | 3,099 | (623 | ) | 22,200 | (2,948 | ) | |||||||||
| Free Cash Flow | $ | 15,883 | $ | 156,341 | $ | 380,472 | $ | 307,401 | |||||||
| Add Back: Growth expenditures | 24,646 | 25,671 | 80,420 | 78,965 | |||||||||||
| Adjusted Free Cash Flow | $ | 40,529 | $ | 182,012 | $ | 460,892 | $ | 386,366 | |||||||
| (1) Others mainly include Gemini interest income, shareholder loan to Kirkland Lake and interest received on third-party loans to partners. | |||||||||||||||
Refer to Northland’s 2022 Annual Report for additional information on sources of liquidity in addition to Adjusted Free Cash Flow.
Significant Events and Updates
Northland’s global activities are exposed to general economic and business conditions, including elevated inflation levels, higher interest rates and capital costs, fluctuations in currency, economic conditions in the countries and regions in which the Company conducts business, and potential interruptions to the global supply chains. The Company’s activities are also subject to regulatory risks and changes in regulation or legislation affected by political developments and by national and local laws and regulations. This could include restrictions on production, changes in taxes, and other amounts payable to governments or governmental agencies, price or rate controls that result in changes to market prices for power generated, reduced revenues or cash flows for operating assets, higher cost of operations, and the introduction of legal and administrative hurdles. The Company’s ability to execute on large development projects is also dependent on its ability to secure project financing, which may not always be available or available on terms acceptable to Northland. Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements.
The Company continues to monitor these and other developments and is taking actions intended to minimize exposure to and impact of these global macroeconomic events. These actions include, but are not limited to, conducting targeted debt refinancing for existing operating facilities to enhance cash flows and corporate liquidity, and implementing hedging strategies on development assets to provide certainty to costs and to preserve economic returns of the projects. In addition, the Company consistently looks for opportunities to optimize its portfolio to create value, enhance financial flexibility and drive enhanced performance in line with its strategic objectives.
Balance Sheet:
Renewables Growth:
Other:
2023 Financial Outlook - Key Highlights
Adjusted EBITDA
For 2023, management expects Adjusted EBITDA to be in the range of $1.20 billion to $1.30 billion.
Adjusted Free Cash Flow and Free Cash Flow
In 2023, management expects Adjusted Free Cash Flow to be in the range of $1.70 to $1.90 per share and Free Cash Flow to be in the range of $1.30 to $1.50 per share.
Adjusted Free Cash Flow excludes approximately $100 million (approximately $0.40 per share) in growth expenditures that support growth and new initiatives. These growth expenditures are expected to support secured projects including: Scotwind, Nordsee 3 and Delta within the Nordsee Cluster, the Korean projects, the recently acquired Alberta solar portfolio, in addition to other Canadian and US opportunities.
The Company remains well positioned to fund its growth objectives. Northland has access to $1,014 million of available liquidity, including $431 million of cash on hand and an approximately $583 million of capacity on its corporate revolving credit facility as at December 31, 2022, which can be utilized to fund growth projects that ultimately advance to financial close.
Northland also intends to execute a selective partnership strategy of partial interests of certain of its development projects on or before financial close. The Company will assess each opportunity individually and intends to remain a long-term owner in the renewable projects it develops. Any gains and losses from the future sell-down of ownership interests in development assets would be included in Free Cash Flow and Adjusted Free Cash Flow as they relate to capturing development profits at key milestones. Currently, the Company has two sell-downs in progress and expects to launch more processes in 2023. The expected net proceeds from these sell-downs would increase reported Free Cash Flow in the event they occur in 2023.
Northland is focused on achieving financial close on the Baltic Power and Hai Long offshore wind projects in 2023. Both projects are progressing towards financial close in 2023, though Hai Long continues to be more challenging than expected due to market specific factors.
Over the longer-term, Northland remains in a strong position to achieve substantial growth in Adjusted EBITDA by 2027. With 3 gigawatts (GW) of gross operating capacity and a robust development pipeline of nearly 20GW, the Company is well positioned for an accelerating global energy transition. Northland intends to be selective and pursue only the projects within its pipeline that meet its strategic objectives and targeted returns. With growth in offshore wind set to outpace all other renewables, Northland’s leading position in offshore wind positions the Company to be a significant player in this segment through the decade. As the Company was with offshore wind, Northland intends to continue to be at the forefront of emerging renewable energy asset classes.
Fourth-Quarter Earnings Conference Call
Northland will hold an earnings conference call on February 24, 2023, to discuss its fourth quarter and full year 2022 results. The call will be hosted by Northland’s Senior Management, who will discuss the Company’s financial results and developments as well as answering questions from analysts.
Conference call details are as follows:
Friday, February 24, 2023, 10:00 a.m. ET
Participants wishing to join the call and ask questions must register using the following URL below:
https://register.vevent.com/register/BIa47067890c9042e784cc4bdeef4f2684
For all other attendees, the call will be broadcast live on the internet, in listen-only mode and can be accessed using the following link:
Webcast URL: https://edge.media-server.com/mmc/p/6ckp7bg4
For those unable to attend the live call, an audio recording will be available on northlandpower.com on February 27, 2023.
Northland’s audited consolidated financial statements for the year ended December 31, 2022, and related Management’s Discussion and Analysis can be found on SEDAR at www.sedar.com under Northland’s profile and on northlandpower.com.
ABOUT NORTHLAND POWER
Northland Power is a global power producer dedicated to helping the clean energy transition by producing electricity from clean renewable resources. Founded in 1987, Northland has a long history of developing, building, owning and operating clean and green power infrastructure assets and is a global leader in offshore wind. In addition, Northland owns and manages a diversified generation mix including onshore renewables, efficient natural gas energy, as well as supplying energy through a regulated utility.
Headquartered in Toronto, Canada, with global offices in eight countries, Northland owns or has an economic interest in 3.0GW (net 2.6GW) of operating capacity. The Company also has a significant inventory of projects in construction and in various stages of development encompassing over 20GW of potential capacity.
Publicly traded since 1997, Northland's common shares, Series 1 and Series 2 preferred shares trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A and NPI.PR.B, respectively.
NON-IFRS FINANCIAL MEASURES
This press release includesreferences to the Company’s adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”), Adjusted Free Cash Flow, Free Cash Flow and applicable payout ratios and per share amounts, which are measures not prescribed by International Financial Reporting Standards (“IFRS”), and therefore do not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. Non-IFRS financial measures are presented at Northland’s share of underlying operations. These measures should not be considered alternatives to net income (loss), cash flow from operating activities or other measures of financial performance calculated in accordance with IFRS. Rather, these measures are provided to complement IFRS measures in the analysis of Northland’s results of operations from management’s perspective. Management believes that Northland’s non-IFRS financial measures and applicable payout ratio and per share amounts are widely accepted and understood financial indicators used by investors and securities analysts to assess the performance of a company, including its ability to generate cash through operations.
FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that are provided for the purpose of presenting information about management’s current expectations and plans.Readers are cautioned that such statements may not be appropriate for other purposes. Northland’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, the events anticipated by the forward-looking statements may or may not transpire or occur. Forward-looking statements include statements that are not historical facts and are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects,” “anticipates,” “plans,” “predicts,” “believes,” “estimates,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” These statements may include, without limitation, statements regarding future Adjusted EBITDA, Adjusted Free Cash Flow and Free Cash Flow, respective per share amounts, dividend payments and dividend payout ratios, guidance, the completion of construction, acquisitions, dispositions, investments or financings and the timing thereof, attainment of commercial operations, the potential for future production from project pipelines, cost and output of development projects, litigation claims, plans for raising capital, and the future operations, business, financial condition, financial results, priorities, ongoing objectives, strategies and the outlook ofNorthland and its subsidiaries.These statements are based upon certain material factors or assumptions that were applied in developing the forward-looking statements, including the design specifications of development projects, the provisions of contracts to which Northland or a subsidiary is a party, management’s current plans and its perception of historical trends, current conditions and expected future developments, the ability to obtain necessary approvals, satisfy any closing conditions, or obtain adequate financing regarding contemplated construction, acquisitions, dispositions, investments or financings, as well as other factors, estimates and assumptions that are believed to be appropriate in the circumstances. Although these forward-looking statements are based upon management’s current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties.Some of the factorsinclude, but are not limited to, risks associated with sales contracts, Northland’s reliance on the performance of its offshore wind facilities at Gemini, Nordsee One and Deutsche Bucht for approximately 50%of its Adjusted EBITDA, counterparty risks, contractual operating performance, variability of sales from generating facilities powered by intermittent renewable resources, offshore wind concentration, natural gas and power market risks, operational risks, recovery of utility operating costs, Northland’s ability to resolve issues/delays with the relevant regulatory and/or government authorities, permitting, construction risks, project development risks, acquisition risks, financing risks, disposition and joint-venture risks, competition risks, interest rate and refinancing risks, liquidity risk, inflation risks, impacts of regional or global conflicts, credit rating risk, currency fluctuation risk, variability of cash flow and potential impact on dividends, taxation, natural events, environmental risks, health and worker safety risks, market compliance risk, government regulations and policy risks, utility rate regulation risks, international activities, reliance on information technology, labour relations, reputational risk, insurance risk, risks relating to co-ownership, bribery and corruption risk, legal contingencies, and the other factors described in the “Risks Factors” section of Northland’s Management’s Discussion and Analysis and Annual Information Form for the year ended December 31,2022, which can be found at www.sedar.com under Northland’s profile and on Northland’s website at northlandpower.com.Northland has attempted to identify important factors that could cause actual results to materially differ from current expectations, however, there may be other factors that cause actual results to differ materially from such expectations. Northland’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, and Northland cautions you not to place undue reliance upon any such forward-looking statements.
The forward-looking statements contained in this release are, unless otherwise indicated, stated as of the date hereof and are based on assumptions that were considered reasonable as of the date hereof. Other than as specifically required by law, Northland undertakes no obligation to update any forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
For further information, please contact:
Mr. Wassem Khalil, Senior Director, Investor Relations
647-288-1019
investorrelations@northlandpower.com
northlandpower.com