Canadian power producer Northland Power Inc (TSE:NPI) on Friday provided financial guidance for 2023, projecting adjusted earnings before interest, tax, amortisation and depreciation (EBITDA) in the range of CAD 1.2 billion (USD 898m/EUR 821m) to CAD 1.3 billion.
This compares to the company’s 2022 guidance range of CAD 1.25 billion to CAD 1.35 billion.
In the current year the company expects higher contribution from the Spanish onshore portfolio and higher overall contribution from onshore renewables including the New York Wind projects, which are set to go online in 2023. Several factors will be offsetting these gains, among them: lower contribution from offshore wind facilities mainly due to lower forecasted wholesale power prices compared to 2022 and conclusion of the NER300 subsidy at Nordsee One in the final of 2022; lower contribution from natural gas facilities due to higher levels of dispatch in 2022; and higher expected growth expenditures.
Adjusted free cash flow is forecast to be between CAD 1.70 and CAD 1.90 per share, compared to the 2022 guidance of CAD 1.85-2.05.
President and chief executive Mike Crawley commented that while the accelerating energy transition and energy security concerns are positive developments for the company, “macro-economic and geo-political headwinds of the last year require even more focus on disciplined and prudent project execution.”
In 2022, the renewables sector was impacted by inflation, supply chain constraints and rising interest rates, the company said.
Longer term, Northland says it is in a position to achieve substantial growth in adjusted EBITDA by 2027. The Toronto-based company’s projects in progress could see its current gross operating capacity of 3 GW reach more than 6.5 GW by 2027.
In January, Northland started operating under a business unit structure based on technology -- the offshore unit accounts for 1.2 GW of operating assets and 12 GW of development projects in Europe and Asia, the onshore unit for 1.1 GW of operating assets and nearly 8 GW of development schemes in North America, Colombia and Europe, while the natural gas and utility unit accounts for 0.7 GW of operating assets.
(CAD 1 = USD 0.748/EUR 0.684)
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Source: Nordsee One GmbH
