Northland Power shoots the lights out in Q1

Northland Power not only produces power like Niagara Falls (in the picture) but it is gradually becoming a wonder just like Niagara Falls.It had a great report for the first quarter as sales increased by 104% or by $186 million and adjusted EBITDA increased by 91%.This is a phenomenal increase but just as NPI promised it would do.The next two quarters will be also very good.14 wind turbines are now installed at their other North Sea project called Nordsee One and the power owned (282 MW) will be almost as great.Their  economic interest in Gemini (operating in the North Sea)will be 360 MW and in Nordsee One it will be 282MW.But in the interim, Northland bought a 100% interest in another North Sea wind project called De Bu and it will add a further 252 MW of power to their portfolio.

The Second Quarter

The second quarter will not have the same percentage increase in revenues and adjusted EBITDA as Q1 but it too will show increases.Gemini will have another quarter of complete operation and there will be pre-completion revenues from Nordsee One and De Bu.There may be also some news on Northland's bid for Nordsee Two (295MW) and Three (385MW).This blog thinks that Northland could be successful here for one bid with the backing of it's German partner RWE.RWE may need a sweetener to back NPI with the German authorities and NPI may accommodate.This would ensure a successful 2018 for both.         

2018 is shaping up also

This blog sees a good second and third quarter of 2017; there will be revenue and earnings increases.There will also be a $90 million award from the OEFC.But Northland says that "shareholders can expect EUR 170 TO 190 from Geminin and EUR 160 to 180 from Nordsee One". Adjusted EBITDA was about $530 million in 2016 and will be about $660 to $710 million in 2017.And this blog sees at least $750 million in 2018.Northland has 170 million shares and so earnings per share would be about $4.20 in 2017 and about $4.75 in 2018.Northland says on it's website that it may have a dividend increase in late 2017 and even possibly a small one in 2018.At a price of $30 per share this is a very moderate P/E ratio for a very classy utility.                                       use Blogdaleupsome for more accurate business forecasts  ;use Blogdaleupsome for more accurate business forecasts; watch Blogdaleupsome for business forecasts