Renewable energy company Boralex Q2 revenue misses estimates on poor Europe, US wind conditions

Overview

• Boralex Q2 revenue of CAD 185 mln missed analyst expectations

• Says production 2% below anticipated levels due to poor wind conditions in Europe, US

• Company reported a net loss of CAD 4 mln due to lower EBITDA and higher costs

• Production increased 14% yr/yr, driven by North American assets and new European sites

Outlook

• Boralex aims to double installed capacity by 2030

• Boralex preparing for tenders in France, Ontario, UK

• Company has 8.2 GW pipeline in wind, solar, storage

Result Drivers

• PRODUCTION INCREASE - 14% increase in production driven by North American assets and new European sites

• LOWER PRICES - Decline in EBITDA due to lower prices for short-term power purchase contracts in France

• JOINT VENTURE IMPACT - Reduced share in earnings of joint ventures in North America contributed to lower EBITDA

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy"

• Wall Street's median 12-month price target for Boralex Inc is C$38.50, about 20.5% above its August 7 closing price of C$30.61

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release: ID:nGNXcgfPG8