Northland Power reports and raises guidance by 20% for 2020

    Northland Power reported it's annual results and then

  made a special report on March 17.Like St.Paddy's Day it definitely had lots of green in it.Northland several years ago took a big gamble by constructing from scratch 3 major wind farms in the North Sea. All 3 projects had a constructed value of more than $2.5 billion Euros.After these projects Northland Power (NPI) has continued to add to it's portfolio of power projects , almost all wind farms and solar projects.Now it owns 60% of an offshore Taiwan wind farm called Hai Long.And it acquired Dado Ocean Wind Farm offshore of South Korea.NPI also constructed a solar project in Mexico.And lastly it acquired a regulated utility in Columbia.These are discussed in more detail below.
      From Small to Mid-Tier Utility         

In 2013 Northland Power was a small utility that owned mostly a number of solar facilities in northern Ontario,hence the name Northland Power.So the announcement  ,in 2015,of jointly constructing,with a Dutch marine operator, and financing a 600MW ($2.5 billion Euros) wind farm project in the North Sea came as a surprise to most investors.This was followed by a second North Sea wind farm (332 MW) offshore the German coast.The third project  for 250 MW costing $2.5 billion Euros was not yet fully  operational in 2019.But Northland had  completely changed it's lineup of assets by 2019.And now their third project  called Deutsche Bucht wind farm is also operational.This was an amazing accomplishment and now NPI has a much larger operational cash flow since 2015.With this in mind Northland told shareholders ,on March 17, that their guidance will now have a 20% increase in 2020.

The New Ones

There are between 5 and 8 of my blogs on Workathon and Blogdaleupsome on the amazing transformation of Northland Power.Building and financing 3, $2.5 billion Euro wind farms, in the very fierce North Sea environment within 4 years was thought to be almost impossible.NPI had little project management experience for such big and complex projects.But Northland with it's Dutch marine operator did it successfully.And it's revenues and adjusted EBITDA doubled since 2016.But now it has added some new projects to it's stable.It has taken a 60% interest in 3 wind farms (1044MW) offshore of  Taiwan--Hai Long 1,2,and 3.It has a joint venture in the Japan Sea to develop wind farm projects.It has started building a new solar project in Mexico called La Lucha.La Lucha should be operational in late 2020.

 It has acquired a regulated utility in Columbia (South America) for $960 million.And lastly it acquired a wind farm in South Korea called Dado Wind Farm.

Summary

Northland Power has had to be a very detailed and precise planner and builder to have completed these large,expensive projects (each $3.0 -$4.5billion Canadian) in a short time period.Now it has started a number of smaller projects in other regions.The money to finance them will come from the original facilities and the 3 large North Sea projects.And the expected revenues from "the new ones"

will allow NPI to move into becoming a mid-tier utility with a substantial cash flow.