(Montreal) Renewable energy producer Boralex posted first-quarter earnings down 15% on Wednesday, despite a 31% increase in revenues compared to the same period last year.
The Montreal-based company posted net income attributable to shareholders of $43 million, or 41 cents per share, for the quarter ended March 31, which compared to a profit of $50 million, or 49 cents per share, for the same period. last year.
Revenues amounted to 298 million, compared to 227 million a year earlier, growth that Boralex attributed to the contribution of wind farms purchased in the United States at the end of 2022, as well as the increased production and high electricity prices in France.
Analysts on average had expected earnings of 41 cents per share, as well as revenue of 264 million, according to forecasts compiled by financial data firm Refinitiv.
Analyst Brent Stadler of Desjardins Securities called the results “solid” and noted that Boralex was well positioned “in all of its core markets.” He still recommends buying his stock, to which he attaches a target price of $50.
“We are confident in its ability to meet its 2025 growth targets, which target 4.4 gigawatts of installed capacity, combined earnings before tax, interest, and amortization of approximately $825 million and discretionary cash flow of approximately 250 million (at the midpoints of their forecast ranges),” Stadler explained in a report.
Boralex shares fell 66 cents on the Toronto Stock Exchange on Wednesday, where they closed at $38.63.
Boralex reported that its energy production rose 1% in the first quarter, compared to last year, which it attributed mainly to commissioning and favorable wind conditions in France, which offset the unfavorable wind conditions in Canada.
Compared to the first quarter of 2022, wind energy production increased by 4%, hydroelectric energy production increased by 10% and solar energy production decreased by 12%.
“The first trimester was […] marked by the announcement of new support plans for accelerating the energy transition and tendering programs in our key markets, particularly in Quebec and elsewhere in Canada”, underlined in a press release the President and CEO of Boralex, Patrick Decostre.
“Over the next few quarters, we will continue our revenue optimization plan by combining our sales efforts with energy-consuming companies, bids in calls for tenders for long-term contracts and sale to the market, particularly in France, where prices remain high,” he added.
In addition, Boralex’s Board of Directors has authorized a quarterly dividend of 16.5 cents per common share, which will be paid on June 15 to shareholders of record as of May 31.