Baltic Power, Hai Long and Oneida projects continue to make construction progress TORONTO, May 15, 2024 (GLOBE NEWSWIRE) -- Northland Power Inc. ("Northland" or the "Company") (TSX: NPI) reported today financial results for the three months ended March 31, 2024. All dollar amounts set out herein are in thousands of Canadian dollars, unless otherwise stated. "We are off to a strong start in 2024 with first quarter results better than expected, thanks to strong winds experienced at our offshore wind facilities," said Mike Crawley, Northland's President and Chief Executive Officer. "Construction programs for our large offshore wind projects in Taiwan and Poland, and energy storage project in Canada, continue to progress, with major pieces of equipment continuing to arrive at all three projects, and Hai Long's 2024 in-water installation campaign fully underway." "Execution of these three projects remains a top priority for Northland and our teams are focused on delivering these projects safely and successfully," said John Brace, Executive Chair. First Quarter Highlights Financial results for the three months ended March 31, 2024, were higher compared to the same quarter of 2023, primarily due to higher wind resource across all offshore wind facilities and contribution from the New York onshore wind projects that achieved commercial operations in October 2023. This increase was partially offset by lower revenue generated from the Spanish portfolio primarily due to lower solar resource and lower market revenue. Financial Results Sales increased to $755 million from $622 million in 2023. Gross Profit increased to $697 million from $569 million in 2023. Net Income increased to $149 million from $107 million in 2023. Adjusted EBITDA (a non-IFRS measure) increased to $454 million from $352 million in 2023. Adjusted Free Cash Flow per share (a non-IFRS measure) increased to $0.88 from $0.72 in 2023. Free Cash Flow per share (a non-IFRS measure) increased to $0.85 from $0.62 in 2023. The following table presents key IFRS and non-IFRS financial measures and operational results. Sales, gross profit, operating income and net income, as reported under IFRS, include consolidated results of entities not wholly owned by Northland, whereas Northland's non-IFRS financial measures include only Northland's proportionate ownership interest.       Summary of Consolidated Results     (in thousands of dollars, except per share amounts) Three months ended March 31,     2024     2023 FINANCIALS       Sales $ 754,920   $ 621,721 Gross profit   697,454     568,903 Operating income   346,169     272,542 Net income (loss)   149,297     107,137 Net income (loss) attributable to common shareholders   75,603     69,894 Adjusted EBITDA (a non-IFRS measure) (2)   453,866     351,701         Cash provided by operating activities   294,263     297,062 Adjusted Free Cash Flow (a non-IFRS measure) (2)   225,732     180,071 Free Cash Flow (a non-IFRS measure) (2)   217,407     154,693 Cash dividends paid   51,158     50,047 Total dividends declared (1) $ 76,699   $ 75,316         Per Share       Weighted average number of shares — basic and diluted (000s)   255,481     250,793 Net income (loss) attributable to common shareholders — basic and diluted $ 0.29   $ 0.27 Adjusted Free Cash Flow — basic (a non-IFRS measure) (2) $ 0.88   $ 0.72 Free Cash Flow — basic (a non-IFRS measure) (2) $ 0.85   $ 0.62 Total dividends declared $ 0.30   $ 0.30         ENERGY VOLUMES       Electricity production in gigawatt hours (GWh)   3,467     2,831 (1) Represents total dividends paid to common shareholders, including dividends in cash or in shares under Northland's dividend reinvestment plan. (2) See Forward-Looking Statements and Non-IFRS Financial Measures below.   First Quarter Results Summary Offshore wind facilities Electricity production for the three months ended March 31, 2024, increased by 12% or 175GWh compared to the same quarter of 2023. This was primarily due to a higher wind resource across all offshore wind facilities and lower unpaid curtailments related to negative prices in Germany, partially offset by higher unpaid curtailments due to grid outages in our German facilities. 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:                     Three months ended March 31, 2024 (1)   2023 (1)   Historical Average (2)   Historical High (2)   Historical Low (2) Electricity production (GWh)                                       Gemini 820   744   724   826   629 Nordsee One 402   347   354   408   312 Deutsche Bucht 352   308   322   352   279 Total 1,574   1,399             (1) Includes GWh produced and attributed to paid curtailments. (2) Represents the historical power production since the commencement of commercial operation of the respective facility (2017 for Gemini and Nordsee One and 2020 for Deutsche Bucht) and excludes unpaid curtailments.   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 ...