Sales of $449 million for the three months ended March 31, 2024, increased 30% or $103 million, compared to the same quarter of 2023, primarily due to higher production across all offshore wind facilities by $50 million, a $34 million P&I factor adjustment in 2023 and $18 million related to various other items.

Adjusted EBITDA of $297 million for the three months ended March 31, 2024, increased 31% or $71 million compared to the same quarter of 2023, due to the same factors as noted above.

An important indicator for performance of offshore wind facilities is the current and historical average power production of the facility. The following tables summarize actual electricity production and the historical average, high and low, for the applicable operating periods of each offshore facility:

Onshore renewable facilities

Electricity production was 31% or 190GWh higher than the same quarter of 2023, primarily due to the contribution from the New York onshore wind projects that achieved commercial operations in October 2023 and higher wind resource across the Canadian and Spanish onshore wind facilities, partially offset by lower solar resource at the Spanish onshore renewable facilities.

Sales of $124 million were 8% or $9 million higher than the same quarter of 2023, primarily due to the contribution from the New York onshore wind projects, partially offset by lower solar resource and lower market revenue from the Spanish portfolio. Please refer to the MD&A for a further breakdown of Spanish portfolio revenue by component.

Adjusted EBITDA of $88 million was 7% or $6 million higher than the same quarter of 2023, due to the same factors as above.

Efficient natural gas facilities

Electricity production increased 24% or 196GWh compared to the same quarter of 2023, mainly due to higher market demand for dispatchable power.

Sales of $89 million decreased 7% or $6 million compared to the same quarter of 2023, primarily due to lower natural gas prices resulting in lower energy rates.

Adjusted EBITDA of $55 million for the three months ended March 31, 2024, decreased 3% or $2 million, compared to the same quarter of 2023, due to the same factors as above.

Utility

Sales of $88 million for the three months ended March 31, 2024, increased 36% or $23 million compared to the same quarter of 2023, primarily due to the higher market demand, rate escalations and foreign exchange gains as a result of the strengthening of the Colombian peso.

Adjusted EBITDA of $34 million for the three months ended March 31, 2024, increased 33% or $8 million compared to the same quarter of 2023, primarily due to the same factors as above.

Consolidated statement of income (loss)

General and administrative (“G&A”) costs of $30 million in the first quarter increased $7 million compared to the same quarter of 2023, primarily due to higher one-time personnel and other costs relating to realignment of operating and corporate functions.

Development costs of $8 million decreased $16 million compared to the same quarter of 2023, primarily due to lower spending on development activities as Northland’s primary focus is to deliver on the successful execution of the three key projects: the Hai Long and Baltic Power offshore wind projects, and Oneida energy storage project.

Net finance costs of $72 million in the first quarter increased $5 million compared to the same quarter of 2023, primarily due to the issuance of the Green Subordinated Notes (“Green Notes”) in the second quarter of 2023, partially offset by scheduled repayments on facility-level loans.

Fair value loss on derivative contracts was $85 million, primarily due to net movement in the fair value of derivatives related to interest rate and foreign exchange contracts.

Foreign exchange gain of $4 million in the first quarter was primarily due to unrealized gain from fluctuations in the closing foreign exchange rates.

Fair value adjustment relating to disposal group classified as held for sale was $44 million due to a fair value adjustment upon classification of the La Lucha solar facility as a disposal group held for sale. Please see below for further information.

Net income of $149 million in the first quarter of 2024 compared to net income of $107 million in the same quarter of 2023, was primarily as a result of the factors described above.

Adjusted EBITDA

The following table reconciles net income (loss) to Adjusted EBITDA:

Adjusted EBITDA of $454 million for the three months ended March 31, 2024, increased 29% or $102 million compared to the same quarter of 2023. The significant factors increasing Adjusted EBITDA include:

• $71 million increase in operating results at the offshore wind facilities, primarily due to higher wind resource, as described above;

• $10 million decrease in development expenditures, partially offset by higher G&A costs, as described above;

• $9 million increase due to the contribution of New York Wind onshore wind facilities, as described above; and

• $8 million increase in operating results at Empresa de Energía de Boyacá S.A E.S.P (“EBSA”), as described above.

The factor partially offsetting the increase in the Adjusted EBITDA was:

• $6 million decrease in the contribution from the Spanish renewables portfolio, primarily due to lower market revenue, as described above.

Adjusted Free Cash Flow and Free Cash Flow

The following table reconciles cash flow from operations to Adjusted Free Cash Flow and Free Cash Flow:

Adjusted Free Cash Flow of $226 million for the three months ended March 31, 2024, was 25% or $46 million higher than the same quarter of 2023.

The significant factors increasing Adjusted Free Cash Flow was:

• $85 million increase in Adjusted EBITDA (gross of growth expenditures) primarily due to the factors described above.

The factors partially offsetting the increase in Adjusted Free Cash Flow were:

• $23 million increase in current taxes primarily at offshore wind facilities as a result of higher operating results;

• $15 million decrease from foreign exchange hedge and other settlements; and

• $7 million increase in funds set aside for maintenance reserves.

Free Cash Flow, which is reduced by growth expenditures, totaled $217 million for the three months ended March 31, 2024, and was $63 million higher than the same quarter of 2023, due to the same factors as Adjusted Free Cash Flow.

The following table reconciles Adjusted EBITDA to Adjusted Free Cash Flow.

Significant Events and Updates

Renewables Growth:

• Construction Update on Hai Long, Baltic Power, and Oneida – The Hai Long project continues to make progress with the fabrication of foundations, cables, and onshore and offshore substations underway. Turbine component manufacturing has commenced. Offshore construction work has continued to advance with the installation of both offshore substation jacket foundations and pin piles at multiple turbine locations. Other major components of the wind park are arriving in Taiwan, including turbine jackets and the first offshore substation topside. Full commercial operations are expected to commence in 2026/2027 according to schedule. Overall project cost is aligned with original expectations.
  
  The Baltic Power project continues to make progress on the fabrication of onshore and offshore substations, foundations, export cables and inter array cables. Turbine manufacturing has commenced and onshore substation construction is underway. Full commercial operations are expected to commence in the latter half of 2026 according to schedule. Overall project cost is aligned with original expectations.
  
  The Oneida project continues to make progress with its construction activities. All foundations for the battery packs and the transformers have been installed. All the battery packs have been delivered, and medium-voltage transformers have started to arrive. Full commercial operations are expected to commence in 2025 according to schedule. Overall project cost is aligned with original expectations.

• La Lucha Solar Facility Sale – On March 4, 2024, Northland entered into an agreement to sell 100% stake in the La Lucha solar facility to Cometa Energía, S.A. de C.V., wholly owned by Saavi Energía (“Saavi”). La Lucha is a 130MW solar facility located in Durango, Mexico. The facility achieved commercial operations in June 2023. The sale is expected to close in 2024, upon satisfaction of customary closing conditions, including approval of the Federal Economic Competition Commission (“COFECE”) required under applicable anti-trust laws in Mexico. Northland expects to receive approximately $205 million in cash after taxes, transaction fees and other customary adjustments. Proceeds will be initially used towards repayment of amounts drawn on the Company’s revolving credit facility and for general corporate purposes.
  
  During the quarter, Northland recorded a fair value adjustment relating to the La Lucha solar facility of $44 million upon classification as a disposal group held for sale. As at March 31, 2024, Northland has a currency translation adjustment relating to La Lucha which will be reclassified to its income statement at the transaction close. Northland expects to realize a ‘gain’ on disposal once the sale transaction closes.
  

Other:

• Executive Changes – On March 25, 2024, Northland announced that Mike Crawley, Northland’s President and Chief Executive Officer, and the Board of Directors have agreed to a change in leadership for the Company. As such, Mr. Crawley will be stepping down from his role. Under the succession plan, Mr. Crawley will remain with Northland until September 30, 2024. A global search for the new CEO is underway. John Brace, Chair of the Board of Directors, has been appointed Executive Chair and will act as a bridge between Mr. Crawley and the next President & CEO as part of the transition. As Executive Chair, Mr. Brace will leverage his prior experience as Northland’s CEO from 2003 to 2018 where he was responsible for the Company’s successful development of its efficient natural gas fleet and the expansion into offshore wind and onshore renewables. Ian Pearce, Chair of the Governance and Nominating Committee, has been appointed Lead Independent Director. After the appointment of a new President & CEO, Mr. Brace is expected to return to his position as Non-Executive Board Chair. Toby Edmonds, the new Head of Offshore Wind Business Unit, officially joined Northland in May 2024, with his initial focus being on the successful project execution of the Hai Long and Baltic Power offshore wind projects.

• Sustainability Report – On April 29, 2024, Northland issued its 2023 Sustainability Report, showcasing achievements in the year 2023 relating to its Environmental, Social and Governance (“ESG”) objectives and targets. The report is available at northlandpower.com.
  

2024 Financial Outlook

Northland’s outlook emphasizes a steadfast dedication to shareholders, underpinned by its 2024 strategic priorities. Central to the Company's strategy is its commitment to operational excellence, prudent growth in key global markets and unwavering focus on the Company's three major renewable construction programs, ensuring their efficient execution.

As of May 15, 2024, management’s 2024 financial outlook remains unchanged from prior guidance. This outlook reflects Northland’s commitment to strong operational performance with key financial projections for 2024 including expected Adjusted EBITDA in the range of $1.2 billion to $1.3 billion and Adjusted Free Cash Flow per share to be in the range of $1.30 to $1.50. Furthermore, projected Free Cash Flow per share for 2024 is expected to be in the range of $1.10 to $1.30, reflecting the Company’s commitment to prudent financial management.

It is important to note that while Northland is confident in its outlook, it remains subject to the Forward-Looking Statements set forth herein as well as the Risk Factors outlined in Northland’s most recent Annual Information Form dated February 21, 2024 (“2023 AIF”).

First-Quarter Earnings Conference Call

Northland will hold an earnings conference call on May 16, 2024, to discuss its first quarter 2024 results. The call will be hosted by Northland’s Senior Management, who will discuss the Company’s financial results and developments as well as answering questions from analysts.

Conference call details are as follows:

Thursday, May 16, 2024, 10:00 a.m. ET

Participants wishing to join the call and ask questions must register using the following URL below:

https://register.vevent.com/register/BI37b8086fede84a02be1ceb284cb334f6

For all other attendees, the call will be broadcast live on the internet, in listen-only mode and can be accessed using the following link:

Webcast URL: https://edge.media-server.com/mmc/p/idpw8xh5/

For those unable to attend the live call, an audio recording will be available on northlandpower.com on Friday, May 17, 2024.

Northland’s unaudited interim condensed consolidated financial statements for the three months ended March 31, 2024, and related Management’s Discussion and Analysis can be found on SEDAR+ at www.sedarplus.ca under Northland’s profile and on northlandpower.com.

ABOUT NORTHLAND POWER

Northland Power is a global power producer dedicated to helping the clean energy transition by producing electricity from clean renewable resources. Founded in 1987, Northland has a long history of developing, building, owning and operating clean and green power infrastructure assets and is a global leader in offshore wind. In addition, Northland owns and manages a diversified generation mix including onshore renewables, efficient natural gas energy, as well as supplying energy through a regulated utility.

Headquartered in Toronto, Canada, with global offices in eight countries, Northland owns or has an economic interest in approximately 3.4GW (net 2.9GW) of operating capacity. The Company also has a significant inventory of projects in construction and in various stages of development encompassing approximately 12GW of potential capacity.

Publicly traded since 1997, Northland's common shares, Series 1 and Series 2 preferred shares trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A and NPI.PR.B, respectively.

NON-IFRS FINANCIAL MEASURES

This press release includes references to the Company’s adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”), Adjusted Free Cash Flow, Free Cash Flow and applicable payout ratios and per share amounts, which are measures not prescribed by International Financial Reporting Standards (“IFRS”), and therefore do not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. Non-IFRS financial measures are presented at Northland’s share of underlying operations. These measures should not be considered alternatives to net income (loss), cash flow from operating activities or other measures of financial performance calculated in accordance with IFRS. Rather, these measures are provided to complement IFRS measures in the analysis of Northland’s results of operations from management’s perspective. Management believes that Northland’s non-IFRS financial measures and applicable payout ratio and per share amounts are widely accepted and understood financial indicators used by investors and securities analysts to assess the performance of a company, including its ability to generate cash through operations.

FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that are provided for the purpose of presenting information about management’s current expectations and plans. Readers are cautioned that such statements may not be appropriate for other purposes. Northland’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, the events anticipated by the forward-looking statements may or may not transpire or occur. Forward-looking statements include statements that are not historical facts and are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects,” “anticipates,” “plans,” “predicts,” “believes,” “estimates,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” These statements may include, without limitation, statements regarding future Adjusted EBITDA, Adjusted Free Cash Flow and Free Cash Flow, including respective per share amounts, dividend payments and dividend payout ratios, the timing for and attainment of the Hai Long and Baltic Power offshore wind and Oneida energy storage projects’ anticipated contributions to Adjusted EBITDA, Adjusted Free Cash Flow and Free Cash Flow, the expected generating capacity of certain projects, guidance, anticipated dates of full commercial operations, forecasts as to overall project costs, the completion of construction, acquisitions, dispositions, whether partial or full, investments or financings and the timing thereof, the timing for and attainment of financial close and commercial operations for each project, the potential for future production from project pipelines, cost and output of development projects, the all-in interest cost for debt financing, the impact of currency and interest rate hedges, litigation claims, anticipated results from the optimization of the Thorold Co-Generation facility and the timing related thereto, future funding requirements, and the future operations, business, financial condition, financial results, priorities, ongoing objectives, strategies and the outlook of Northland, its subsidiaries and joint ventures. These statements are based upon certain material factors or assumptions that were applied in developing the forward-looking statements, including the design specifications of development projects, the provisions of contracts to which Northland or a subsidiary is a party, management’s current plans and its perception of historical trends, current conditions and expected future developments, the ability to obtain necessary approvals, satisfy any closing conditions, satisfy any project finance lender conditions to closing sell-downs or obtain adequate financing regarding contemplated construction, acquisitions, dispositions, investments or financings, as well as other factors, estimates and assumptions that are believed to be appropriate in the circumstances. Although these forward-looking statements are based upon management’s current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties. Some of the factors that could cause results or events to differ from current expectations include, but are not limited to, risks associated with further regulatory and policy changes in Spain which could impair current guidance and expected returns, risks associated with merchant pool pricing and revenues, risks associated with sales contracts, the emergence of widespread health emergencies or pandemics, Northland’s reliance on the performance of its offshore wind facilities at Gemini, Nordsee One and Deutsche Bucht for over 50% of its Adjusted EBITDA, counterparty and joint venture risks, contractual operating performance, variability of sales from generating facilities powered by intermittent renewable resources, wind and solar resource risk, unplanned maintenance risk, offshore wind concentration, natural gas and power market risks, commodity price risks, operational risks, recovery of utility operating costs, Northland’s ability to resolve issues/delays with the relevant regulatory and/or government authorities, permitting, construction risks, project development risks, integration and acquisition risks, procurement and supply chain risks, financing risks, disposition and joint-venture risks, competition risks, interest rate and refinancing risks, liquidity risk, inflation risks, commodity availability and cost risk, construction material cost risks, impacts of regional or global conflicts, credit rating risk, currency fluctuation risk, variability of cash flow and potential impact on dividends, taxation, natural events, environmental risks, climate change, health and worker safety risks, market compliance risk, government regulations and policy risks, utility rate regulation risks, international activities, cybersecurity, data protection and reliance on information technology, labour relations, labour shortage risk, management transition risk, geopolitical risk in and around the regions Northland operates in, large project risk, reputational risk, insurance risk, risks relating to co-ownership, bribery and corruption risk, terrorism and security, litigation risk and legal contingencies, and the other factors described in the “Risks Factors” section of Northland’s Management’s Discussion and Analysis and Annual Information Form for the year ended December 31, 2023, which can be found at www.sedarplus.ca under Northland’s profile and on Northland’s website at northlandpower.com. Northland has attempted to identify important factors that could cause actual results to materially differ from current expectations, however, there may be other factors that cause actual results to differ materially from such expectations. Northland’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, and Northland cautions you not to place undue reliance upon any such forward-looking statements.

The forward-looking statements contained in this release are, unless otherwise indicated, stated as of the date hereof and are based on assumptions that were considered reasonable as of the date hereof. Other than as specifically required by law, Northland undertakes no obligation to update any forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Certain forward-looking information in this release and the MD&A may also constitute a “financial outlook” within the meaning of applicable securities laws. Financial outlook involves statements about Northland’s prospective financial performance, financial position or cash flows and is based on and subject to the assumptions about future economic conditions and courses of action and the risk factors described above in respect of forward-looking information generally, as well as any other specific assumptions and risk factors in relation to such financial outlook noted in this release and the MD&A. Such assumptions are based on management’s assessment of the relevant information currently available and any financial outlook included in this release and the MD&A is provided for the purpose of helping readers understand Northland’s current expectations and plans for the future. Readers are cautioned that reliance on any financial outlook may not be appropriate for other purposes or in other circumstances and that the risk factors described above or other factors may cause actual results to differ materially from any financial outlook. The actual results of Northland’s operations will likely vary from the amounts set forth in any financial outlook and such variances may be material.

For further information, please contact:

Dario Neimarlija, Vice President, FP&A and Investor Relations

647-288-1019

[email protected]

northlandpower.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b19927a5-1296-424f-bd53-b95caaa1c73f