Boralex announces a substantial 62% increase in net earnings and continued disciplined development of highly promising projects

Highlights

Financial results

• Higher EBITDA(A)¹, operating income and net earnings than in Q1-2023
• Increases mainly attributable to higher wind farm production in North America, the contribution from new facilities commissioned and strategy to optimize electricity selling prices in France.
• EBITDA(A)¹ of $195 million ($218 million on a Combined² basis)³ in Q1-2024, up $28 million ($28 million) from Q1-2023.
• Operating income of $106 million ($134 million) in Q1-2024, up $29 million ($32 million) from Q1-2023.
• Net earnings of $73 million in Q1-2024, up $28 million from Q1-2023.
• Higher discretionary cash flows² and more financial flexibility to finance growth
• Discretionary cash flows of $78 million in Q1-2024, up $12 million from Q1-2023.
• $230 million in net cash flows related to operating activities in Q1-2024.
• $575 million in available cash resources and authorized financing² as at March 31, 2024, $28 million more than in the previous quarter.

Development and construction

• Secured, under construction and ready-to-build projects progressing according to plan
• Commissioning of a 21 MW wind farm in France.
• Ongoing construction at the Apuiat wind project in Québec and the Limekiln wind project in Scotland, with commissioning scheduled for late 2024.
• Two storage projects in Ontario and the Des Neiges Sud wind project in Quebec progressing as planned, with commissioning expected in 2025 and 2026.
• 239 MW added to the early stage project pipeline
• 171 MW for a solar project and a storage project in North America.
• 68 MW for solar and wind projects in Europe.

Montreal, Quebec, May 15, 2024 — Boralex Inc. (“Boralex” or the “Company”) (TSX: BLX) is pleased to report significantly higher first quarter results for 2024.

“Boralex has once again demonstrated its ability to deliver strong results quarter after quarter, as illustrated by a 17% increase in our EBITDA(A) and a 62% increase in our net earnings for the first three months of the year. This growth can mainly be attributed to higher wind farm production in North America, the contribution of new facilities commissioned and our strategy to optimize electricity selling prices in France,” said Patrick Decostre, President and Chief Executive Officer of Boralex.

“In the coming quarters, we will continue to pursue growth in our various target markets, where there are ample opportunities. Our teams are busy preparing responses to upcoming tender calls in Quebec, Ontario, New York State, the United Kingdom and France. This considerable diversity will allow us to pace our growth and focus on the most profitable markets,” Mr. Decostre added.

• EBITDA(A) is a total of segment measures. For more details, see the Non-IFRS and other financial measures section of this press release.

• “Combined”, “discretionary cash flows” and “available cash resources and authorized financing facilities” are non-GAAP financial measures and do not have a standardized definition under IFRS. Therefore, these measures may not be comparable to similar measures used by other companies. For more details, see the Non-IFRS financial measures and other financial measures section of this press release.
• Figures in brackets indicate results on a Combined basis as opposed to a Consolidated basis.

1st quarter highlights
Three-month periods ended March 31
			Consolidated							Combined 1
(in millions of Canadians dollars, unless otherwise	2024		2023				Change	2024		2023				Change
specified) (unaudited)					$		%						$	%
Power production (GWh)2	1,767		1,696		71		4	2,355		2,286		69		3
Revenues from energy sales and
feed-in premium	259		298		(39)		(13)	291		328		(37)		(11)
Operating income	106		77		29		38	134		102		32		31
EBITDA(A)3	195		167		28		17	218		190		28		14
Net earnings (loss)	73		45		28		62	73		45		28		62
Net earnings attributable to
shareholders of Boralex	55		33		22		69	55		33		22		69
Per share – basic and diluted	0.53	$	0.31	$	0.22	$	68	0.53	$	0.31	$	0.22	$	68
Net cash flows related to operating
activities	230		244		(14)		(6)	—		—		—		—
Cash flows from operations1	157		141		16		12	—		—		—		—
Discretionary cash flows1	78		66		12		16	—		—		—		—

In the first quarter of 2024, Boralex produced 1,767 GWh (2,355 GWh) of electricity, 4% (3%) more than the 1,696 GWh (2,286 GWh) produced in the same quarter of 2023. The increase was mainly attributable to commissionings in France and strong wind farm performance. Boralex ended the quarter with total production in line with anticipated production⁴.

Revenues from energy sales and feed-in premiums for the three-month period ended March 31, 2024, amounted to $259 million ($291 million), 13% (11% on a combined basis) lower than in the first quarter of 2023. The decrease was mainly attributable to lower selling prices in France. EBITDA(A)³ amounted to $195 million ($218 million), up 17% (14%) compared to the first quarter of 2023. Operating income totalled $106 million ($134 million), compared to $77 million ($102 million) for the same quarter of 2023. The strength of the quarterly results is primarily a reflection of higher production in North America, commissionings, and our strategy to optimize electricity selling prices in France. Net earnings amounted to $73 million, up $28 million from $45 million in the first quarter in 2023.

Outlook

Boralex’s 2025 Strategic Plan is built around the same four strategic directions as the plan launched in 2019 – growth, diversification, customers and optimization – and six corporate targets. The details of the plan, which also sets out Boralex’s corporate social responsibility strategy, are found in the Corporation’s annual report. Highlights of the main achievements of the quarter ended on March 31, 2024 in relation to the 2025 Strategic Plan can be found in the 2024 Interim Report 1, which is available in the Investors section of the Boralex website.

In the coming quarters, Boralex will continue to work on its various initiatives under the strategic plan, including project development, analysis of acquisition targets and optimization of power sales and operating costs.

Finally, to fuel its organic growth, the Corporation has a pipeline of projects at various stages of development defined on the basis of clearly identified criteria, totaling 6.7 GW of wind, solar and energy storage projects.

Dividend declaration

The Company’s Board of Directors has authorized and announced a quarterly dividend of $0.1650 per common share. This dividend will be paid on June 17, 2024, to shareholders of record at the close of business on May 31, 2024. Boralex designates this dividend as an “eligible dividend” pursuant to paragraph 89 (14) of the Income Tax Act (Canada) and all provincial legislation applicable to eligible dividends.

• “Combined”, “Cash flows from operations” and “Discretionary cash flows” are non-GAAP financial measures and do not have a standardized definition under IFRS. Therefore, these measures may not be comparable to similar measures used by other companies. For more details, see the Non-IFRS financial measures and other financial measures section of this press release.

• Power production includes the production for which Boralex received financial compensation following power generation limitations imposed by its customers since management uses this measure to evaluate the Corporation’s performance. This adjustment facilitates the correlation between power production and revenues from energy sales and feed-in premium.

• EBITDA(A) is a total of sector measures. For more details, see the Non-IFRS financial measures and other financial measures section of this press release.

• Anticipated production is an additional financial measure, For more details see the Non-IFRS financial measures and other financial measures section of this press

About Boralex

At Boralex, we have been providing affordable renewable energy accessible to everyone for over 30 years. As a leader in the Canadian market and France’s largest independent producer of onshore wind power, we also have facilities in the United States and development projects in the United Kingdom. Over the past five years, our installed capacity has more than doubled to over 3 GW. We are developing a portfolio of projects in development and construction of close to 6.7 GW in wind, solar and storage projects, guided by our values and our corporate social responsibility (CSR) approach. Through profitable and sustainable growth, Boralex is actively participating in the fight against global warming. Thanks to our fearlessness, our discipline, our expertise and our diversity, we continue to be an industry leader. Boralex’s shares are listed on the Toronto Stock Exchange under the ticker symbol

BLX.

For more information, visit www.boralex.com or www.sedarplus.ca. Follow us on Facebook, LinkedIn and Twitter.

NT4