Innergex Renewable Energy Inc (INGXF) Q2 2024 Earnings Call Highlights: Strategic Growth Amid ...
In This Article:
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Adjusted EBITDA Proportionate: $184 million, approximately 8% lower year over year.
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Free Cash Flow: $51.8 million or $0.26 per share, compared to $0.09 per share in Q2 2023.
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Total Debt: $6.4 billion, down from $6.5 billion in Q1 2024.
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Asset Availability: 96% overall asset availability in the quarter.
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Production: 91% of Long-Term Average (LTA), similar to Q2 2023.
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2024 Guidance: Adjusted EBITDA proportionate expected to be $725 million to $775 million; Free cash flow per share before prospective expenses expected to be $0.70 to $0.85 per share.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Innergex Renewable Energy Inc (INGXF) maintained a high asset availability of over 96% across its portfolio, demonstrating effective operational management.
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The company successfully commissioned a project in Chile under budget by $5 million, showcasing efficient project execution.
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Innergex Renewable Energy Inc (INGXF) signed a 25-year PPA with Hydro-Quebec, providing long-term revenue stability with full CPI indexing.
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The company has a diversified portfolio with projects in various stages of development, offering flexibility and optionality for future growth.
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Innergex Renewable Energy Inc (INGXF) reported a significant increase in free cash flow per share, rising from $0.09 in Q2 2023 to $0.26 in Q2 2024, driven by strategic transactions and cost management.
Negative Points
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The company experienced below-average wind regimes and lower irradiance, impacting production and resulting in generation being only 91% of the long-term average.
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Adjusted EBITDA proportionate decreased by approximately 8% year over year, affected by a less favorable generation mix.
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Innergex Renewable Energy Inc (INGXF) faced increased corporate expenses due to higher investments in greenfield activities, impacting short-term profitability.
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The company did not win any bids in a recent RFP, indicating challenges in competitive pricing and market conditions.
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Interconnection challenges in the US pose a significant hurdle for project development, potentially delaying future growth opportunities.
Q & A Highlights
Q: Can you give us a sense of price terms for the new contracts with Hydro-Quebec? A: Michel Letellier, President and CEO, stated that they are not disclosing the price of the renewed contracts. However, he mentioned that the terms are in line with previous contracts, with an increase in capacity by about 15% due to equipment upgrades. The contracts are also indexed to CPI for 25 years.