After strong Q1 results, Montreal-based renewable project developer Boralex Inc. (BLX-T) reported a decline in power production that affected revenues and net income in its Q2 financials.

Revenue from energy sales and feed-in premium was $180 million in Q2. Operating income stood at $35 million while net earnings were $17 million. Power production was 1,323 gigawatt-hours (GW-h) in the quarter.

The results compare to $259 million in revenue, operating income of $106 million and $73 million of net earnings in Q1. During that period, Boralex had generated 1,767 GW-h of power production.

In a year-over-year comparison, revenue in Q2 2023 was $210 million, with operating income at $38 million and net earnings of $19 million. It generated 1,353 GW-h of power production.

Weather conditions and power curtailments in France caused the decrease in power production and financial results, Boralex said in a release. Total production fell 11 per cent below its forecast.

“The vast majority of our indicators for the first six months of fiscal 2024 are positive, with net earnings up more than 41 per cent,” Patrick Decostre, president and CEO of Boralex, said in the announcement.

Delving deeper into Boralex’s Q2 finances

EBITDA for Q2 stood at $130 million, behind $195 million in Q1, but higher than the $119 million in Q2 2023.

“The decline in production was offset by the positive impact from the strategy to optimize electricity selling prices and the contribution of commissioning in France, as well as an increase in the contribution from joint ventures in North America,” the Boralex release states, explaining the year-over-year rise in EBITDA.

Net earnings for shareholders stood at $11 million or $0.10 per share in Q2. It fell from $55 million in Q1 or $0.53 per share. Compared to the year prior, net earnings were $16 million, or $0.15 per unit.

Boralex had cash reserves of $91 million and credit facilities of $530 million as of June 30.

The introduction of a 30 per cent clean technology investment tax credit will enable the company’s growth in Canada, Decostre added.

Boralex’s plans

For 2025, Boralex will continue on a path around growth, diversification, customers and optimization.

Those goals include:

• prioritizing the U.S. market and diversifying in Europe;
• growth in the solar energy market;
• expanding its customer base; and
• optimizing its assets.

Boralex has a pipeline of 6.8 gigawatts (GW) of wind, solar and energy storage projects.

As of Aug. 13, 2024, the company’s installed capacity was 3,133 megawatts (MW), according to an interim report.

Summarizing its activities, Boralex is:

• commissioning a 21 MW wind farm and a 13 MW solar farm in France;
• assembling a turbine for the Apuiat wind farm in Quebec and the Limekiln wind farm in Scotland, both expected to be commissioned in late 2024;
• expecting to start construction on its 300-MW Hagersville and 80-MW Tilbury energy storage projects in Ontario by August; and
• is on track for development of the Des Neiges Sud project in Quebec.

It is participating in requests for proposal in New York State and the U.K., and has an early-stage pipeline of 46 MW of solar projects in North America and 165 MW of solar and wind projects in Europe.

“Hydro-Québec’s recent announcements regarding near-term development of 10 GW of large-scale projects in Quebec and the forthcoming Ontario and British Columbia requests for proposals are very promising developments,” Decostre said in the report. “The current strong demand for corporate power purchase agreements and tendering processes under way in New York state, the United Kingdom and France are also very positive indications of the growth potential in our target markets.”

The company did not host an analyst/investor call to provide additional details about the financial report.