In This Article:
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Innergex Renewable Energy Inc (INGXF) completed $450 million of project finance, enhancing balance sheet flexibility.
-
The company successfully sold down $250 million worth of investment in Texas, improving financial outcomes.
-
Innergex Renewable Energy Inc (INGXF) achieved 97% of long-term average (LTA) production in Q4 2024, an improvement from 94% in Q4 2023.
-
The company reported adjusted EBDA proportionate of $210 million in Q4 2024 and $761 million for the full year, marking a 13% and 3% increase year over year, respectively.
-
Innergex Renewable Energy Inc (INGXF) has a strong pipeline with 6.2 gigawatts of potential projects by 2030, supported by long-term power purchase agreements (PPAs).
Negative Points
-
Production was impacted by below-average wind regimes in France and Chile, and lower water flows at hydro sites outside of BC.
-
The company faced lower irradiance and curtailment impacts in its Chilean solar portfolio.
-
Total debt amounted to approximately $6.6 billion, indicating a significant leverage position.
-
Innergex Renewable Energy Inc (INGXF) is exposed to potential duty impacts and currency exchange risks, particularly with US projects.
-
The company needs to manage geopolitical risks and resource allocation challenges, especially with its international projects.
Q & A Highlights
Q: How is Innergex Renewable Energy Inc. planning to allocate capital between its markets, particularly given the significant opportunities in Canada? A: The CEO explained that while the team in France operates independently and continues to create value, Innergex is focusing heavily on Canada, hiring more people and leveraging strong partnerships with First Nations. The company is also planting seeds in the U.S. market, recognizing its potential for future growth despite current challenges.
Q: Are the returns on capital deployed in Canada expected to exceed those in France, the U.S., or Chile? A: The CEO noted that while France offers a niche market with good risk-reward balance, Chile presents higher risks and thus demands a premium. The U.S. market is competitive but offers pockets of high returns. Canada, however, is seen as a particularly attractive proposition in terms of risk-reward.
Q: Can you comment on the corporate lending facility and how comfortable Innergex is with its current debt levels? A: The CFO stated that recent financial maneuvers have provided significant flexibility. The company repaid $150 million of corporate debt and has the option to use its revolving credit facility to manage upcoming convertible debenture maturities, ensuring continued project development and financial stability.