Article content material

Project Highlights

Article content material

Article content material

TORONTO, Sept. 19, 2023 (GLOBE NEWSWIRE) — Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) together with its associate, Orlen S.A. (“Orlen”), right now introduced that its Baltic Power offshore wind undertaking (“Baltic Power” or the “project”) in Poland has signed a credit score settlement to safe an equal of $5.2 billion of non-recourse inexperienced financing that adheres to Northland’s inexperienced financing framework overlaying building and a 20-year time period.

The non-recourse undertaking financing can be supplied by 25 worldwide and native industrial banks, and a number of Export Credit Agencies and multi-lateral companies. The undertaking is anticipated to succeed in monetary shut within the coming days, upon satisfaction of all related situations precedent to the financing being achieved.

“Today’s announcement is a major achievement for Northland, our partners and the Baltic Power project,” mentioned Mike Crawley, President and Chief Executive Officer of Northland. “This milestone demonstrates the support from the global financial community and reflects their confidence in Northland and our ability to develop, procure, construct and finance large and complex offshore wind projects. Despite the recent challenges for the offshore wind sector in some markets, Northland continues to find a way to advance large-scale offshore wind projects with attractive economics.”

Article content material

“This financing is Northland’s first offshore wind project in Poland,” mentioned Pauline Alimchandani, Northland’s Chief Financial Officer. “We would like to thank all stakeholders for working together to achieve this significant milestone. Once operational, Baltic Power will be Northland’s fourth offshore wind project in Europe and will provide significant high quality, inflation-protected, long-term contracted Adjusted EBITDA and Free Cash Flow to our business and shareholders.”

Northland has been co-developing Baltic Power with Orlen, since buying a 49 per cent fairness stake within the undertaking in 2021. The undertaking financing quantity of $5.2 billion represents 80 per cent of Baltic Power’s $6.5 billion projected complete capital price (inclusive of contingencies). The remaining capital can be contributed by the undertaking companions at monetary shut and has already been secured. Northland’s share of fairness for the undertaking was totally secured by means of the inexperienced hybrid bond issuance in June 2023 and present company liquidity. Northland’s curiosity in Baltic Power is anticipated to generate a five-year common Adjusted EBITDA (a non-IFRS measure)¹ of roughly $300 to $320 million and $95 to $105 million of Free Cash Flow (a non-IFRS measure)¹ per yr as soon as operational, delivering vital long-term money move for the Company’s shareholders.

Article content material

Article content material

^{¹See Non-IFRS Financial Measures and Forward-Looking Statements under.}

The undertaking’s 25-year CfD offtake settlement is Euro-pegged and consists of an inflation indexation characteristic commencing with a base yr of 2021, offering offsetting advantages to the upper inflationary worth pressures just lately skilled. Further optimization alternatives can be pursued throughout and after the development interval, which embody: future optimizations the lengthy tenor CfD gives, working price enhancements and building execution efficiencies. The undertaking has secured a 15-year operations and upkeep settlement with the turbine provider, with choices to increase.

The undertaking is positioned within the Baltic Sea, roughly 22 kilometres off the Polish coast close to Plaża Wydmy Lubiatowskie and has obtained all environmental approvals and main building permits. Construction actions have commenced, with fabrication of sure key elements underway. Full industrial operations are anticipated within the latter half of 2026. Once operational, Baltic Power can be amongst the most important offshore wind initiatives globally. It is anticipated to offer clear power to over 1.5 million Polish households and can play an necessary function in serving to Poland obtain its renewable power targets the place put in capability of offshore wind power is anticipated to succeed in as much as 11 GW by 2040.

Article content material

Baltic Power has entered into rate of interest hedges that cowl the complete mortgage amortization interval and supply an efficient all-in rate of interest of roughly 5 per cent. In addition, Northland has entered into foreign money hedges to stabilize the Canadian greenback equal for almost all of its projected distributions by means of 2038 and can enter into further hedges on an ongoing foundation, in keeping with the Company’s threat administration technique. Baltic Power’s main provide and building contracts are denominated in Euros to match the foreign money of financing, with 95% below mounted worth contractual constructions.

Article content material

* Northland’s curiosity reflective of 49 per cent possession. Assumed common EUR/CAD trade fee at 1.53 within the first 5 years of operations. The 2021 CfD tariff of PLN 319.6/MWh (equal to EUR 71.8/MWh) with CfD worth pegged to EUR at 4.45 PLN/EUR. In 2022, CfD modified from Polish Zloty to Euro denominated foreign money. Indexation base yr moved up one yr to 2022 utilizing 2021 CPI. Northland’s fairness consists of quantities paid to amass the unique 49% stake in Baltic Power, and quantity to roughly $0.1 billion.

^{²See Non-IFRS Financial Measures and Forward-Looking Statements under.}

ABOUT NORTHLAND POWER

Northland Power is a worldwide energy producer devoted to serving to the clear power transition by producing electrical energy from clear renewable assets. Founded in 1987, Northland has an extended historical past of creating, constructing, proudly owning and working clear and inexperienced energy infrastructure property and is a worldwide chief in offshore wind. In addition, Northland owns and manages a diversified technology combine together with onshore renewables, environment friendly pure fuel power, in addition to supplying power by means of a regulated utility.

Article content material

Headquartered in Toronto, Canada, with world places of work in eight international locations, Northland owns or has an financial curiosity in roughly 3.2 GW (web 2.7 GW) of working capability. The Company additionally has a big stock of initiatives in building and in numerous phases of growth encompassing roughly 16 GW of potential capability.

Publicly traded since 1997, Northland’s frequent shares, Series 1 and Series 2 most well-liked shares commerce on the Toronto Stock Exchange below the symbols NPI, NPI.PR.A and NPI.PR.B, respectively.

NON-IFRS FINANCIAL MEASURES

This press launch consists of references to the Company’s adjusted earnings earlier than curiosity, revenue taxes, depreciation and amortization (“Adjusted EBITDA”), Free Cash Flow, that are measures not prescribed by International Financial Reporting Standards (“IFRS”), and due to this fact would not have any standardized that means below IFRS and is probably not corresponding to comparable measures offered by different corporations. Non-IFRS monetary measures are offered at Northland’s share of underlying operations. These measures shouldn’t be thought-about alternate options to web revenue (loss), money move from working actions or different measures of economic efficiency calculated in accordance with IFRS. Rather, these measures are supplied to enrich IFRS measures within the evaluation of Northland’s outcomes of operations from administration’s perspective. Management believes that Northland’s non-IFRS monetary measures are broadly accepted and understood monetary indicators utilized by buyers and securities analysts to evaluate the efficiency of an organization, together with its means to generate money by means of operations. For an in depth description of every of the non-IFRS monetary measures referred to above, together with the reconciliations for such non-IFRS monetary measure to their most immediately comparable IFRS monetary measure, see Section 1: Non-IFRS Financial Measures, Section 4.5: Adjusted EBITDA, and Section 4.6: Adjusted Free Cash Flow and Free Cash Flow in our MD&A for the three and six-month intervals ended June 30, 2023, which is included by reference and obtainable below the Company’s profile on SEDAR+ at www.sedarplus.ca.

Article content material

FORWARD-LOOKING STATEMENTS

This press launch accommodates sure forward-looking statements together with sure future oriented monetary info which can be supplied for the aim of presenting details about administration’s present expectations and plans.
Northland’s precise outcomes might differ materially from these expressed in, or implied by, these forward-looking statements and, accordingly, the occasions anticipated by the forward-looking statements could or could not transpire or happen. Readers are cautioned that such statements is probably not applicable for different functions. Forward-looking statements embody statements which can be predictive in nature, depend on or check with future occasions or situations, or embody phrases corresponding to “expects,” “anticipates,” “plans,” “predicts,” “believes,” “estimates,” “intends,” “targets,” “projects,” “forecasts” or destructive variations thereof and different comparable expressions or future or conditional verbs corresponding to “may,” “will,” “should,” “would” and “could.” These statements could embody, with out limitation, statements relating to Northland’s expectations for steerage, the completion of building, the timing for and attainment of economic operations, the undertaking’s anticipated contributions to Adjusted EBITDA and Free Cash Flow, the anticipated producing capability of the undertaking, and the longer term operations, enterprise, monetary situation, monetary outcomes, priorities, ongoing targets, methods and outlook of Northland and its subsidiaries, all of which can differ from the expectations said herein. These statements are based mostly upon sure materials elements or assumptions that had been utilized in creating the forward-looking statements, together with the design specs of growth the initiatives, the provisions of contracts to which Northland or a subsidiary is a celebration, administration’s present plans and its notion of historic developments, present situations and anticipated future developments, in addition to different elements, estimates, and assumptions which can be believed to be applicable within the circumstances. Although these forward-looking statements are based mostly upon administration’s present affordable expectations and assumptions, they’re topic to quite a few dangers and uncertainties. Some of the elements embody, however usually are not restricted to, dangers related to gross sales contracts, Northland’s reliance on the efficiency of its offshore wind services at Gemini, Nordsee One and Deutsche Bucht for roughly 50% of its Adjusted EBITDA and Free Cash Flow, counterparty dangers, impacts of regional or world conflicts, contractual working efficiency, variability of gross sales from producing services powered by intermittent renewable assets, offshore wind focus, pure fuel and energy market dangers, commodity worth dangers, operational dangers, restoration of utility working prices, Northland’s means to resolve points/delays with the related regulatory and/or authorities authorities, allowing, building dangers, procurement and provide chain threat, undertaking growth dangers, disposition and three way partnership threat, competitors dangers, acquisition dangers, financing dangers, rate of interest and refinancing dangers, liquidity threat, credit standing threat, foreign money fluctuation threat, variability of money move and potential affect on dividends, taxation, pure occasions, environmental dangers, local weather change, well being and employee security dangers, market compliance threat, authorities rules and coverage dangers, utility fee regulation dangers, worldwide actions, cybersecurity, information safety and reliance on info expertise, labour relations, reputational threat, insurance coverage threat, dangers referring to co-ownership, bribery and corruption threat, authorized contingencies, and the opposite elements described within the “Risks Factors” part of Northland’s 2022 Annual Information Form, which could be discovered at www.sedarplus.ca below Northland’s profile and on Northland’s web site at northlandpower.com. Northland has tried to establish necessary elements that might trigger precise outcomes to materially differ from present expectations, nonetheless, there could also be different elements that trigger precise outcomes to vary materially from such expectations. Northland’s precise outcomes might differ materially from these expressed in, or implied by, these forward-looking statements and, accordingly, no assurances could be provided that any of the occasions anticipated by the forward-looking statements will transpire or happen, and Northland cautions you to not place undue reliance upon any such forward-looking statements.

Article content material

The forward-looking statements contained on this launch are based mostly on assumptions that had been thought-about affordable as of the date hereof. Other than as particularly required by legislation, Northland undertakes no obligation to replace any forward-looking statements to replicate occasions or circumstances after such date or to replicate the incidence of unanticipated occasions, whether or not on account of new info, future occasions or outcomes, or in any other case.

^{² See Non-IFRS Financial Measures and Forward-Looking Statements under.}

For additional info, please contact:

Mr. Adam Beaumont, Vice President
Mr. Dario Neimarlija, Vice President
647-288-1019
investorrelations@northlandpower.com

Article content material