Boralex has announced robust financial results for Q3 2023, revealing a notable increase in earnings before interest, tax, depreciation, and amortization (EBITDA). The reported $91 million marks a $41 million surge compared to the same period in 2022, demonstrating the company's solid performance in the renewable energy sector.
Net earnings also saw a substantial improvement, with a $54 million increase in Q3 2023 compared to the corresponding quarter in the previous year. The positive financial trajectory can be primarily attributed to the successful commissioning of assets, strong performance of comparable wind farms in France, and the integration of wind farms acquired in the United States in late 2022.
Patrick Decostre, President and Chief Executive Officer of Boralex, highlighted key factors contributing to the earnings boost. He stated, “The increase in earnings for the quarter is mainly attributable to the contribution of the wind assets acquired in the United States for the North American sector and the wind and solar farms commissioned in France for the European sector.”
Decostre emphasized the favorable production from comparable wind assets in Europe, which offset challenges posed by particularly unfavorable wind conditions in Canada during the same period.
The third quarter also saw progress on major projects under construction or in the ready-to-build stage. These include the Apuiat wind farm in Quebec, two storage projects in Ontario, and the Limekiln wind farm in Scotland. Decostre expressed confidence in these projects, citing their high expected returns surpassing established thresholds and adherence to schedule.
Boralex is actively advancing its project pipeline, with 509MW added to early and mid-stages. This expansion comprises 244MW in early-stage projects, including six new solar projects and one storage project in North America, along with two solar projects in Europe. Additionally, a 265MW mid-stage wind project in North America contributes to the company's growing portfolio.
The company has secured a contract for difference for the Limekiln 106MW wind farm project in Scotland, with commissioning scheduled for the end of 2024. Simultaneously, financing efforts are underway for the 200MW Apuiat wind farm in Quebec, with commissioning also planned for the end of 2024.
Furthermore, Boralex noted the transition of 200MW of solar projects in the state of New York from the secured phase to the advanced phase. The company is evaluating the possibility of rebidding these projects in upcoming requests for proposals.