Boralex's net earnings for the third quarter of 2024 were $7 million, a decrease of $6 million compared to the same period in 2023, primarily due to lower wind production. The company faced pressure on EBITDA, operating income, and net earnings as a result of adverse wind conditions in Canada and France, as well as increased curtailments at certain wind farms.
EBITDA for the quarter was $87 million, down $3 million from Q3 2023. The decrease in production was partially offset by the contribution of newly commissioned sites in France and the positive impact of Boralex's electricity selling price optimisation strategy.
Boralex continued to make strategic progress during the quarter, notably with the signing of a 15-year corporate power purchase agreement (PPA) with Nestlé France for a facility commissioned in 2024, as well as the inclusion of two additional projects in the corporation's pipeline. Furthermore, a 20-year corporate PPA was signed with Saint-Gobain for two solar sites and one wind array also within the company's pipeline.
Patrick Decostre, President and CEO of Boralex, commented: “We are pleased to report on the substantial developments within our secured project pipeline. Construction is proceeding apace at our Apuiat and Limekiln wind projects in Québec and Scotland, with commissioning of both projects planned for later this year. We have also commenced construction on our Hagersville and Tilbury storage projects in Ontario, which are scheduled for commissioning at the end of 2025.”
Decostre highlighted the challenges posed by volatile weather conditions, noting that the company experienced lower production due to adverse weather in Canada and France during the quarter. He added: “In the past few years we have seen the volatility of the resource in our segment grow from quarter to quarter, which makes it more difficult to plan and manage production without however affecting mid to long term annual production forecasts. The fluctuating weather conditions underscore the need to diversify both geographically, notably in the UK, and technologically in order to strengthen the resilience of our business and ensure more stable production.”
Boralex remains focused on optimizing its revenues through a diversified electricity selling price strategy, with significant milestones in securing long-term corporate PPAs.
