Innergex comments on weather events in Texas
LONGUEUIL, Quebec, February 17, 2021 – Innergex Renewable Energy Inc. (TSX: INE) (“Innergex” or the “Corporation”) reports that the recent and ongoing unprecedented extreme winter weather conditions in Texas are having an impact on its ability to produce electricity at its Flat Top wind facility in Mills County, which is expected to resume to normal operations by the week-end. As for our Shannon wind facility in Clay County, Foard City wind facility in Foard County and the Phoebe solar facility located in Winkler County, while some power generation has continued, the combined effect of supply interruptions, abnormal market pricing conditions and contractual obligations to supply a predetermined daily generation under the power hedges, have had both positive and negative financial impacts depending on varying conditions at different times.
While the higher market price environment is expected to have a net favourable impact on the consolidated revenues and Adjusted EBITDA, the Corporation estimates the potential adverse financial impact of the weather events on a consolidated basis to be between CAN$45 million and CAN$60 million, due to the unfavourable impact from the realized losses on the power hedges, and from the Corporation’s share of loss of joint ventures and associates also related to realized losses on the power hedges. Force majeure and other mitigating possibilities are being evaluated.
“Given the magnitude of the severe weather system, we are glad that all our employees are safe and sound. Our team has shown an exceptional dedication and we would like to thank all of them for their remarkable efforts at mitigating the weather system’s impacts on our activities,” said Michel Letellier, President and CEO of Innergex. “Fortunately, none of our installations have suffered damages, and once the weather conditions improve, our skilled teams will work safely to progressively resume normal operations.”
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 and solar farms, 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 currently consisting of interests in 75 operating facilities with an aggregate net installed capacity of 2,742 MW (gross 3,694 MW), including 37 hydroelectric facilities, 32 wind farms and six solar farms. Innergex also holds interests in ten projects under development, four of which are under construction, with a net installed capacity of 555 MW (gross 629 MW) and energy storage capacity of 329 MWh, as well as prospective projects at different stages of development with an aggregate gross capacity totaling 6,871 MW. 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 power production, prospective projects, successful development, construction and financing (including tax equity funding) of the projects under construction and the advanced-stage prospective projects, sources and impact of funding, project acquisitions, execution of non-recourse project-level financing (including the timing and amount thereof), and strategic, operational and financial benefits and accretion expected to result from such acquisitions, business strategy, future development and growth prospects (including expected growth opportunities under the Strategic Alliance), business integration, governance, 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, the estimated project costs, projected revenues, projected revenues Proportionate, projected Adjusted EBITDA and projected Adjusted EBITDA Proportionate, Projected Free Cash Flow and intention to pay dividend quarterly, the estimated project size, costs and schedule, including obtainment of permits, start of construction, work conducted and start of commercial operation for Development Projects and Prospective Projects, the Corporation’s intent to submit projects under Requests for Proposals, the qualification of U.S. projects for PTCs and ITCs and other statements that are not historical facts. Such information is intended to inform readers of the potential financial impact of expected results, of the expected commissioning of Development Projects, of the potential financial impact of completed and future acquisitions and of the Corporation’s ability to sustain current dividends and to fund its growth. 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 latest Annual Report for more information.
Innergex Renewable Energy Inc.
Chief Financial Officer
450 928-2550, ext. 1207
Senior Director – Communications
450 928-2550, ext. 1222