Innergex announces the full commissioning and tax equity funding of the Griffin Trail wind facility in Texas
LONGUEUIL, Quebec, August 3, 2021 – Innergex Renewable Energy Inc. (TSX: INE) (“Innergex” or the “Corporation”) has acquired 100% of the shares of Empresa Eléctrica Licán S.A. (“Licán”), which owns and operates an 18 MW run-of-river hydro facility with a reservoir for daily regulation for up to 3.5 hours. The facility commissioned in 2011 is located on the Licán river, in the region of Los Rios in Chile. Licán was acquired for a total enterprise value of US$40.5 million (CAN$50.5 million) with an equity investment for Innergex of US$16.6 million (CAN$20.6 million), broken down to payment to the shareholders and the partial repayment of the existing debt and other costs.
“It was only last month that we consolidated our presence in Chile with the acquisition of the remaining interests in Energía Llaima. I mentioned at that time how we intend to increase our presence in the region, and the acquisition of Licán supports this growth strategy in South America,” said Michel Letellier, President and Chief Executive Officer of Innergex. “Licán is a high-quality asset with nine years of proven profitability selling its output on the merchant market. The facility features a small reservoir that will allow us to regulate the flow for a continuous energy supply. The acquisition of Licán complements our strategy to diversify our revenue sources by adding capacity revenues to our mix.”
The facility is expected to produce a gross estimated long-term average of 77.8 GWh per year. The asset is expected to reach an Adjusted EBITDA of US$2.1 million (CAN$2.6 million) on average for the first five full years.
The total equity investment of US$16.6 million (CAN$20.6 million) will be financed with cash held in Chile.
About Innergex Renewable Energy Inc.
For over 30 years, Innergex has believed in a world where abundant renewable energy promotes healthier communities and creates shared prosperity. As an independent renewable power producer which develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and energy storage facilities, Innergex is convinced that generating power from renewable sources will lead the way to a better world. Innergex conducts operations in Canada, the United States, France and Chile and manages a large portfolio of high-quality assets. Its approach to building shareholder value is to generate sustainable cash flows, provide an attractive risk-adjusted return on invested capital and to distribute a stable dividend.
Cautionary Statement Regarding Forward-Looking Information
To inform readers of the Corporation's future prospects, this press release contains forward-looking information within the meaning of applicable securities laws (“Forward-Looking Information”), including the Corporation’s projected financial performance, power production, project acquisitions, and strategic, operational and financial benefits and accretion expected to result from such acquisitions, business strategy, future development and growth prospects, business integration, business outlook, objectives, plans and strategic priorities, and other statements that are not historical facts.
Forward-Looking Information can generally be identified by the use of words such as “approximately”, “may”, “will”, "could”, “believes”, “expects”, “intends”, "should”, "would”, “plans”, “potential”, "project”, “anticipates”, “estimates”, “scheduled” or “forecasts”, or other comparable terms that state that certain events will or will not occur. It represents the projections and expectations of the Corporation relating to future events or results as of the date of this press release.
Forward-Looking Information includes future-oriented financial information or financial outlook within the meaning of securities laws, including information regarding the Corporation's expected production, projected revenues, projected Revenues Proportionate, projected Adjusted EBITDA and projected Adjusted EBITDA Proportionate, and other statements that are not historical facts. Such information is intended to inform readers of the potential financial impact of expected results, and of completed and future acquisitions. Such information may not be appropriate for other purposes.
Forward-looking Information is based on certain key assumptions made by Innergex, including, without restrictions, assumptions concerning project performance, economic, financial and financial market conditions, expectations and assumptions concerning availability of capital resources and timely performance by third-parties of contractual obligations, receipt of regulatory approvals and the divestiture of select assets. Although Innergex believes that the expectations and assumptions on which such forward-looking information is based are reasonable, under the current circumstances, readers are cautioned not to rely unduly on this forward-looking information as no assurance can be given that they will prove to be correct. The forward-looking information contained in this press release is made as of the date hereof and Innergex does not undertake any obligation to update or revise any forward-looking information, whether as a result of events or circumstances occurring after the date hereof, unless so required by law.
For more information on the risks and uncertainties that may cause actual results or performance to be materially different from those expressed, implied or presented by the forward-looking information or on the principal assumptions used to derive this information, please refer to the "Forward-Looking Information" section of the Management's Discussion and Analysis for the three-month period ended March 31, 2021.
Cautionary Statement Regarding Non-IFRS measures
The unaudited condensed interim consolidated financial statements for the three-month period ended March 31, 2021, have been prepared in accordance with International Financial Reporting Standards (“IFRS”). However, some measures referred to in this press release are not recognized measures under IFRS and therefore may not be comparable to those presented by other issuers. Innergex believes that these indicators are important, as they provide management and the reader with additional information about the Corporation's production and cash generation capabilities, its ability to sustain current dividends and dividend increases and its ability to fund its growth. These indicators also facilitate the comparison of results over different periods. Innergex's share of Revenues of joint ventures and associates, Revenues Proportionate, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Proportionate, Adjusted EBITDA Proportionate Margin, Innergex's share of Adjusted EBITDA of joint ventures and associates, Adjusted Net Loss, Free Cash Flow, Adjusted Free Cash Flow, Payout Ratio and Adjusted Payout Ratio are not measures recognized by IFRS and have no standardized meaning prescribed by IFRS. Please refer to the "Non-IFRS Measures" section of the Management's Discussion and Analysis for the three-month period ended March 31, 2021.
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