• Production: 87% of the long-term average, impacted by below-average wind regimes and lower water flows.

• Adjusted EBITDA: $196 million, approximately 3% lower year-over-year.

• Free Cash Flow: $70.8 million or 35 per share, compared with 42 per share in Q3 2023.

• Total Debt: $6.4 billion, stable quarter over quarter.

• Liquidity: Over $500 million.

• Share Buyback: $2.4 million worth of shares repurchased in Q3 2024, totaling approximately $10 million year-to-date.

• Refinancing: $108 million refinancing for Pulm Hydro portfolio, exceeding initial expectations.

• Warning! GuruFocus has detected 7 Warning Signs with INGXF.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Innergex Renewable Energy Inc (INGXF) reported strong operational availability of its plants, ensuring readiness to capitalize on natural resources.

• The company successfully submitted a portfolio of projects in British Columbia, demonstrating effective project management and strategic growth.

• Innergex is expanding its presence in Chile with new projects, including battery installations to leverage market opportunities.

• The company executed a refinancing initiative for its hydro portfolio, exceeding initial financial expectations and enhancing financial flexibility.

• Innergex's hydro facilities in British Columbia are performing in line with long-term expectations, reversing previous years' dry conditions.

Negative Points

• The quarter was impacted by below-average wind regimes and lower water flows, affecting overall production.

• Free cash flow per share decreased compared to the previous year, influenced by lower EBITDA and higher interest payments.

• The company is tracking towards the lower end of its 2024 guidance due to industry-wide wind resource issues.

• There is uncertainty regarding the recontracting of the Curtis Palmer hydro facility, with potential impacts on future revenue.

• The BC RFP process presents challenges due to inflation pressures and the need for contingencies in project pricing.

Q & A Highlights

Q: How might changes in US policy, particularly regarding tax credits or tariffs, impact the Palomino project and your broader portfolio? A: Michel Letellier, President and CEO, stated that they have secured solar panels from a local supplier, minimizing tariff concerns. While potential reductions in corporate tax rates could affect PTC and ITC suppliers' appetites, the project is well-positioned for a long-term PPA in Ohio. The flexibility of not having committed to a fixed price yet allows them to adjust to any policy changes.