• Revenues Proportionate up 12% to $781.5 million in 2020 compared with 2019.
• Adjusted EBITDA Proportionate up 8% to $560.3 million in 2020 compared with 2019.
• Attractive growth perspectives with $457.8 million in available liquidity.
• Creation of the Strategic Alliance between Hydro-Québec and Innergex.
• Four projects under construction and three project financings closed during 2020 for the Hillcrest solar project, the Innavik hydro project and the Griffin Trail wind project.
• Two acquisitions completed in Chile and Idaho, United States.

Innergex Renewable Energy today released its operating and financial results for the fourth quarter and year ended December 31, 2020.

“I am proud of the work achieved by the Innergex team this year. Successfully managing four projects under construction while developing numerous others, completing two acquisitions, and all while operating 75 sites across four countries is quite an endeavour,” said Michel Letellier, President and Chief Executive Officer of Innergex. "For more than 30 years, we have been at the forefront of adopting a sustainable business model that balances environmental, social and governance factors. We are pleased to see the investment community finally recognize that this is the best model to benefit our planet. This movement positions Innergex to achieve the substantial growth it projects in the years to come.”

OPERATING PERFORMANCE

Innergex benefits from geographic diversification and the complementarity of hydroelectric, wind and solar power generation. 

For the year ended December 31, 2020, Production Proportionate was 97% of the LTA and up 20% over last year. Revenues Proportionate increased 12% compared to last year mainly due to a higher contribution from the hydroelectric power generation segment which posted higher revenues in British Columbia despite curtailment imposed by BC Hydro. The increase is also due to the wind power generation segment due to the Foard City facility commissioned in 2019 and the Production Tax Credits ("PTC") it generated and the Mountain Air Acquisition completed in July 2020, partly offset by lower revenues at the Quebec facilities. The solar power generation segment also contributed to the increase with the commissioning of the Phoebe facility in 2019 and the Salvador Acquisition completed in May 2020. Adjusted EBITDA was up 3% compared to last year at $422.1 million and the Adjusted EBITDA Proportionate increased by 8% at $560.3 million. General and administrative expenses increased by $6.4 million, stemming mainly from an increase in salaries and professional fees to support the Corporation's growth.

In the fourth quarter of 2020, the hydroelectric power generation segment generated $53.9 million in Adjusted EBITDA Proportionate, representing a 48% increase from the $36.5 million generated in the same period last year, mainly due to a higher contribution from the facilities in British Columbia and to higher production at the Quebec facilities. The increase was also due to a higher contribution from the joint ventures' and associates' hydroelectric facilities. Revenues Proportionate for the segment were up 46% at $74.4 million. Production Proportionate was up 56%. 

For the three-month period ended December 31, 2020, the wind power generation segment posted $103.2 million in Adjusted EBITDA Proportionate, representing a 5% decrease over the $108.7 million generated in the same period last year. This decrease is mainly attributable to a lower contribution from the joint ventures' and associates' wind facilities mainly from the Shannon and Flat Top facilities. Revenues Proportionate for the segment increased by 1% to $127.0 million. Production Proportionate was up 5%.

The solar power generation segment generated $8.4 million in Adjusted EBITDA Proportionate in the quarter, representing an 8% decrease from the $9.1 million posted in the same period last year due mainly to a lower contribution from the Phoebe solar facility due to lower net selling prices, partly offset by lower operational expenses and by the Salvador Acquisition. Revenues Proportionate for the segment decreased by 8% to $10.0 million. Production Proportionate was up 39%.

Innergex's financial position remains strong and has no material debt maturities prior to 2023. The focus continues to be on developing, acquiring and operating renewable energy facilities that generate sustainable cash flows and provide an attractive risk-adjusted return on invested capital.

Construction Activities in the Quarter:

The Hillcrest solar project (Ohio) is approximately 90% complete and all major work activities are well underway with over 400 total personnel on site. Commissioning work started in December 2020 and full commercial operation is scheduled for Q2 2021.

Residential bi-energy conversion program engineering is completed and the preparation of RFP is advanced at the Innavik hydro project (Quebec). Bridge to give access to the south shore was delivered and its installation is almost completed. Construction and long-term credit agreement of $92.8 million was entered into on November 4, 2020. The three wind turbines have been fully installed and their commissioning is ongoing. Full commercial operation is targeted for March 2021 at the Yonne II wind project (France).

Construction progressed well on site in Q4 at the Griffin Trail wind project (Texas), with significant progress on roads, turbine foundations and the operations and maintenance building. The contractor has over 200 personnel on site performing the work. Turbine deliveries are scheduled to commence in January and to be completed in April 2021. Project financing was completed at the end of December. Commercial operation is scheduled for Q3 2021.

KeyFacts Energy: Innergex Canada country profile