Innergex Renewable Energy ((TSE:INE)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Innergex Renewable Energy’s latest earnings call paints a picture of strong overall performance, with the company surpassing key financial benchmarks and achieving successful project completions. The sentiment expressed was positive, focusing on growth and resilience, despite challenges in production in certain regions and concerns related to tariffs and share price impact. The company remains optimistic about its outlook for 2025, with increased financial guidance and strategic plans to address current issues.
Exceeded Financial Objectives
Innergex Renewable Energy has demonstrated strong financial performance by achieving $761 million in EBITDA and exceeding its free cash flow per share guidance at $1.06. This achievement underscores the resilience of the company’s portfolio, reinforcing its financial stability and strength.
Successful Project Completions
The completion of the Boswell project, which adds 330 megawatts of wind capacity in Wyoming under a long-term PPA contract, marks a significant milestone for Innergex. This timely delivery highlights the company’s capability to execute large-scale projects efficiently.
Strong Growth in Development Portfolio
Innergex has expanded its development portfolio significantly by securing three projects in British Columbia with long-term PPAs and 360 gigawatts of TPA in Chile. This expansion demonstrates the company’s strategic focus on growth in diverse markets.
Record RFP Wins in Canada
The company achieved a record number of RFP wins in Canada by leveraging long-term partnerships with First Nations and local communities. This accomplishment showcases Innergex’s competitive edge and commitment to collaborative growth.
Increased Liquidity and Financial Flexibility
Innergex has enhanced its financial flexibility by completing $450 million in project financing and achieving over $700 million in liquidity, positioning the company well for future investments and growth opportunities.
Positive 2025 Guidance
Looking ahead, Innergex’s guidance for 2025 reflects a positive outlook with an expected adjusted EBITDA of $825-875 million, indicating a 13% growth compared to 2024. The anticipated free cash flow per share is set to increase by 10% year over year, demonstrating the company’s confidence in its future performance.
Below Average Production in Some Regions
Innergex faced production challenges, with output at 97% of LTA in Q4 due to below-average wind regimes in France and Chile, as well as lower water flows and curtailments in the Chilean solar portfolio. These factors highlight areas for potential improvement.
Potential Tariff Impact
The company is facing a potential $10 million impact from US tariffs on solar panels. However, Innergex plans to mitigate this through existing inventory and currency hedges, showcasing its proactive approach to managing external risks.
Low Share Price Concerns
With the share price at historical lows, Innergex is actively discussing strategic responses, including potential share buybacks. This concern indicates the company’s commitment to addressing shareholder value and market perception.
Guidance for 2025
In its 2024 Fourth Quarter and Year-End Results Conference Call, Innergex provided guidance for 2025, anticipating robust growth. The company expects an adjusted EBITDA ranging from $825 million to $875 million, reflecting a 13% growth over 2024. Free cash flow per share is projected to rise by 10%, with production expected to align with long-term averages and asset availability at approximately 95%.
In summary, Innergex Renewable Energy’s earnings call reflects a strong performance and a positive outlook, with key financial objectives exceeded and significant project completions. Despite facing some challenges, the company is well-positioned for growth with increased liquidity and strategic plans for improvement. The guidance for 2025 reinforces this optimistic view, projecting continued financial success and resilience.
