Northland Power has a slow quarter
On May 11,2015 Northland Power released it's first quarter results.It's financial statistics were all down a little from the same quarter of 2014.This is a building period for Northland and it has had large increases since 2012. The small decrease comes from a reduction in contribution from several Canadian operations.Northland in this period from 2015 until 2017 or 2018 is awaiting results from it's new European wind projects-Gemini and Nordsee(One,Two and Three).In effect, Northland is taking a breather between the tremenduous growth it has already experienced and that about to come onstream.
The First Quarter
The net loss was $14.6 compared to $15 million for the same quarter of 2014.Revenue was $201 million compared to $229 million in 2014 and operating income was $74 compared to $84 million.These results were affected by smaller contributions from their operations in Kingston,Thorold,Cochrane and Kirkland Lake.But Northland adds that it is still on track to meet guidance of adjusted EBITDA of $380 to $400 million for the year.
These(first quarter decreases) are really small for Northland as it is more concerned with it's new operations in Europe and in Grand Bend,Ontario.Northland states that Gemini is progressing well and Nordesee is in construction and on schedule. The Grand Bend wind project is in construction and they are finishing the last four of their 13 ground mounted solar projects.Their Mclean solar project has just been completed and on budget.
Northland has completed two equity issues in 2014;one was for $157 million of convertible subordinated debentures and the second was for $280 million in common shares.Also they sold a 67% interest in their Frampton,Quebec wind project for $10 million.These actions have had an effect on their payout ratio. Northland adds that it's payout ratio has risen from 49% to 60% and will gradually move towards 100% by 2017 without more non-core asset sells(like Frampton,Quebec and their ground mounted solar projects).Nevertheless NPI will maintain it's dividend at present levels even if the payout ratio rises.
Summary
Northland does not give an expected completion date for it's large Grand Bend wind project.But this blog believes it should be complete by the fourth quarter of 2015.This plus the new solar projects will increase operating revenues this year.Their European projects will be a drain in 2015 and not contribute until late 2016 (at best).But investors must be aware that Northland Power has already had a tremenduous jump in revenues and earnings recently.In addition,adjusted EBITDA (by my calculations) was about $310 million for 2014 and is expected to hit $380 to $400 million for 2015.This makes Northland Power a very good performer while it is waiting for it's European projects to finish.This pause is a good time for investors to catch NPI before new earnings come onstream and it heads towards $25 a share.
The First Quarter
The net loss was $14.6 compared to $15 million for the same quarter of 2014.Revenue was $201 million compared to $229 million in 2014 and operating income was $74 compared to $84 million.These results were affected by smaller contributions from their operations in Kingston,Thorold,Cochrane and Kirkland Lake.But Northland adds that it is still on track to meet guidance of adjusted EBITDA of $380 to $400 million for the year.
These(first quarter decreases) are really small for Northland as it is more concerned with it's new operations in Europe and in Grand Bend,Ontario.Northland states that Gemini is progressing well and Nordesee is in construction and on schedule. The Grand Bend wind project is in construction and they are finishing the last four of their 13 ground mounted solar projects.Their Mclean solar project has just been completed and on budget.
Northland has completed two equity issues in 2014;one was for $157 million of convertible subordinated debentures and the second was for $280 million in common shares.Also they sold a 67% interest in their Frampton,Quebec wind project for $10 million.These actions have had an effect on their payout ratio. Northland adds that it's payout ratio has risen from 49% to 60% and will gradually move towards 100% by 2017 without more non-core asset sells(like Frampton,Quebec and their ground mounted solar projects).Nevertheless NPI will maintain it's dividend at present levels even if the payout ratio rises.
Summary
Northland does not give an expected completion date for it's large Grand Bend wind project.But this blog believes it should be complete by the fourth quarter of 2015.This plus the new solar projects will increase operating revenues this year.Their European projects will be a drain in 2015 and not contribute until late 2016 (at best).But investors must be aware that Northland Power has already had a tremenduous jump in revenues and earnings recently.In addition,adjusted EBITDA (by my calculations) was about $310 million for 2014 and is expected to hit $380 to $400 million for 2015.This makes Northland Power a very good performer while it is waiting for it's European projects to finish.This pause is a good time for investors to catch NPI before new earnings come onstream and it heads towards $25 a share.
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