(Montreal) Energy producer Innergex announced on Wednesday that it met all the conditions to go ahead with a major wind project in the United States, but the news was overshadowed by a warning revealing that it has produced less electricity than expected at the end of the year.
The lower production will also have an effect on the cash generated by the activities of the Longueuil company, she indicated in a press release.
Cash flow in 2022 would be 10% lower than the target of 75 cents per share issued last August, according to preliminary results. Production measured in gigawatt hours (GWh), for its part, should increase by 13% rather than the initial target of 22%.
Innergex attributed this discrepancy to exceptionally low hydrological levels in British Columbia and the adoption of a surtax on the profits of energy producers in France.
National Bank Financial analyst Rupert Merer doesn’t think the forecast revision will have a big impact on the stock’s value. “With recent rainfall in Western Canada, we believe first quarter results will be in line with expectations. »
A 30-year contract
Innergex also announced that it has met all the necessary conditions to proceed with the 320 megawatt (MW) project in Boswell Springs, Wyoming. This contract signed with PacifiCorp, a subsidiary of the firm Berkshire Hathaway of the investor Warren Buffett, has a duration of 30 years.
The project, whose commissioning is scheduled for the end of 2024, should generate annual cash flows of 22.6 million US, the equivalent of 30.3 million CAN, excluding the financing structure which has not yet been concluded.
The construction costs of the project will reach 544 million US, the equivalent of 728.2 million CAN, calculates the company.
Innergex shares lost 22 cents, or 1.34%, to $16.23 around noon on the Toronto Stock Exchange.