Latest news with #BalticPower
Yahoo
17 hours ago
- Business
- Yahoo
Northland Power Inc (NPIFF) Q2 2025 Earnings Call Highlights: Navigating Challenges and Seizing ...
Adjusted EBITDA: $245 million, a 9% decrease compared to Q2 2024. Free Cash Flow: $58 million, approximately 15% lower than Q2 2024. Free Cash Flow Per Share: $0.22 compared to $0.27 in Q2 2024. Net Loss: $53 million compared to a net income of $246 million in Q2 2024. Commercial Availability: 95% during the quarter. Capital Expenditures: $9 billion spent to date on Hai Long and Baltic Power projects, with $6 billion remaining. Updated Adjusted EBITDA Guidance: $1.2 billion to $1.3 billion for the full year. Updated Free Cash Flow Guidance: $1.15 to $1.35 per share for the full year. Warning! GuruFocus has detected 11 Warning Signs with NPIFF. Release Date: August 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Northland Power Inc (NPIFF) completed the 250-megawatt Oneida battery storage project ahead of schedule and under budget, making it Canada's largest operating storage facility. The company achieved significant construction milestones with the Hai Long and Baltic Power projects, which will add 2.1 gigawatts of gross capacity to their offshore wind portfolio. Northland Power Inc (NPIFF) reported strong operational performance with a commercial availability of 95% and excellent performance in their onshore natural gas business. The company is actively pursuing new opportunities in core markets like Canada and Europe, focusing on storage, onshore renewables, and gas power generation. Northland Power Inc (NPIFF) is strategically focusing on high-value projects and markets they know well, such as Central Europe, to ensure long-term value for shareholders. Negative Points Northland Power Inc (NPIFF) experienced a 9% decrease in adjusted EBITDA compared to the same quarter in 2024, primarily due to low offshore wind resources and higher unpaid curtailments in Germany. The company reported a net loss of $53 million for the quarter, compared to a net income of $246 million in 2024, largely due to lower operating income and noncash mark-to-market losses on foreign currency hedges. Free cash flow decreased by approximately 15% compared to the same quarter last year, primarily due to lower adjusted EBITDA. The company revised its full-year forecast for adjusted EBITDA and free cash flow downward due to lower offshore wind resources and scheduled grid outages. Northland Power Inc (NPIFF) decided not to renew a permit for a South Korean offshore wind project due to evolving regulatory frameworks and uncertainty around development terms. Q & A Highlights Q: Christine, can you provide more details on the turnover in the prospective growth pipeline, particularly regarding the onshore renewables and storage projects? A: Christine Healy, President and CEO: We decided to high-grade our opportunities, focusing on projects with the highest probability of success. Some Ontario projects were deprioritized due to procurement terms not aligning with our value criteria. Similarly, an Alberta opportunity was dropped due to new information, and a New York State project was also set aside due to changing conditions. Q: Jeff, regarding the Q2 free cash flow, there was a $16 million maintenance reserve positive. Is this a one-off, or should we expect similar impacts in the future? A: Jeffrey Hart, CFO: It's more of a one-off and not something structural. It was about optimizing our financial resources efficiently, and we don't anticipate this to be a recurring item. Q: Can you discuss the curtailment issues in Germany and what you expect in terms of future curtailments? A: Christine Healy, President and CEO: We are currently analyzing the situation in Germany. While we budget for a certain amount of curtailment, we don't foresee a significant shift in the current variability. We are monitoring the situation closely as new entrants come onto the grid. Q: Can you provide an update on the number of turbines installed for the Hai Long and Baltic Power projects? A: Christine Healy, President and CEO: At Hai Long, we have installed 20 turbines and 72 out of 73 jacket foundations. For Baltic Power, we have installed 40 monopiles out of 76 and 5 turbines. Q: Are there any updates on potential M&A activities, particularly regarding gas assets in Canada or other regions? A: Christine Healy, President and CEO: We are actively screening M&A opportunities and have taken a deeper dive into several prospects. Our operational teams are adept at assessing value, and while we've passed on some opportunities, we remain positive about future M&A activities. Q: Have you seen any incremental supply chain pressures recently, and are there specific technologies or regions affected? A: Christine Healy, President and CEO: Overall, we haven't seen a significant change from last quarter. We are closely monitoring the situation and maintaining regular communication with key suppliers to ensure our project timelines remain unaffected. Q: Regarding the Oneida battery storage project, can you provide details on its performance and revenue split? A: Jeffrey Hart, CFO: The economic case for Oneida was around $40 million EBITDA annually. We see potential upside as an early mover, but we remain prudent in our outlook. The revenue split is approximately 60% capacity and 40% merchant. Q: Can you provide more details on the opportunities in Europe for batteries and onshore renewables? A: Christine Healy, President and CEO: We are in active discussions about these opportunities and hope to provide more details by our Investor Day. We are focusing on markets where we are already active and can drive better value, prioritizing high-value projects. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Russia Today
4 days ago
- Business
- Russia Today
Poland to turn wind farm into NATO's eyes and ears
Poland is converting a major offshore wind farm into a strategic surveillance asset for NATO, Euractiv reported on Monday. The Baltic Power project is reportedly installing radars and sensors on its turbine towers in response to an alleged increase in Russian hybrid threats. Located less than 200 kilometers from Russia's Kaliningrad Region, Baltic Power is set to become one of Poland's largest offshore wind farms. The 76-turbine facility is scheduled for completion in 2026 and is expected to provide electricity to 1.5 million households. According to Marcin Godek, the wind farm's operations and maintenance manager, the surveillance equipment is being installed in line with a checklist from Poland's Ministry of Defense. The move reportedly follows a series of incidents in the Baltic region, including the Nord Stream pipeline sabotage and damage to key energy links like the Balticconnector and EstLink 2. Alleged drone and ship activity, as well as signal spoofing and jamming during construction, also prompted the decision to enhance monitoring, the news outlet said. 'The threats to offshore energy infrastructure are very real,' Giles Dickson, CEO of lobby group Wind Europe said, as cited by the news outlet. 'Assets are being attacked physically, not just cyberattacks.' 'We are looking at infrastructure differently than we were one year ago,' Ignacy Niemczycki, Poland's state secretary for EU affairs, told Euractive. Western officials have accused Russia of involvement in damaging the Balticconnector gas pipeline and the Estlink 2 power cable. Moscow, which considers the Baltic Sea a strategic area for its naval operations and energy exports, has repeatedly dismissed the allegations of sabotage and accused the West of spreading a false narrative that frames routine accidents as evidence of its culpability. The Kremlin has denounced NATO's eastward expansion as a provocation that endangers regional stability, while dismissing Western concerns about Russian aggression as nonsense, and stressing that NATO is using fear to justify increasing military budgets. Western officials suggested Russia may have sabotaged the Nord Stream pipelines to destabilize Europe's energy security. Moscow, in turn, accused Washington of orchestrating the explosions – a claim echoed by investigative journalist Seymour Hersh, who cited sources alleging US involvement.
Euractiv
5 days ago
- Politics
- Euractiv
Europe's wind farm army
Twelve nautical miles out to sea from the town of Łeba on Poland's coastline, the first of 76 new wind turbines are beginning to pierce the fog. The Baltic Power project will be one of the country's biggest offshore wind farms, generating enough electricity for 1.5 million homes. But its contribution to Europe's security goes beyond supplying power. The 120-metre towers are set to become sentinels, tirelessly scanning the brackish waters and leaden skies for hostile activity. In this new Cold War, where spying and sabotage threaten Europe's energy and communications infrastructure, and possibly even its territorial integrity, the potential of wind farms for military surveillance is lost on no one. As the Polish state secretary for EU affairs, Ignacy Niemczycki, told Euractiv on a windy boat ride out to the site: "We are looking at infrastructure differently than we were one year ago." Wake-up call When Finland and Sweden joined in 2023 and 2024, defence analysts dubbed the Baltic Sea 'Lake NATO', with members of the military alliance effectively encircling it. But after three years in which the strategically important waters have been plagued by drones, spy ships, aerial stand-offs and blatant sabotage of power and communication cables, the moniker is starting to ring hollow. There are only two strips of coastline on the Baltic that don't belong to NATO; both are Russian, and the area is becoming a geopolitical flashpoint. Now, more than three years after Russian tanks rolled across the border into Ukraine, the military alliance is looking to rally the serried ranks of offshore wind turbines, like the Baltic Power project, to Europe's defence. When the Nord Stream 2 gas pipelines were blown up in 2022, it came as a harsh 'wake-up call' to the European Union, says Julian Pawlak, a research associate at Hamburg military university (HSU). Western nations learned the hard way that they 'do not have a complete awareness of the Baltic Sea maritime domain'. The destruction last Christmas of the Estlink 2 undersea cable linking the Nordic electricity market to the Baltic power grid just before the latter cut ties with Russia was another rude awakening, and prompted NATO to set up a military operation in response. Making more off wind NATO has discussed dotting offshore energy infrastructure with surveillance tools for years. In the past, turning oil rigs into military bases has proven unfeasible for cost, security, and engineering reasons, Pawlak says. That's where wind turbines come in: They are tall, decentralised, and there are hundreds of them off the EU's Baltic coast. Already, wind turbines are equipped with bird sensors and transponders signalling their whereabouts to submarines, says Pawlak. Baltic Power – situated less than 200 kilometres from the Russian exclave of Kaliningrad – is equipping its new turbine towers with radars and sensors, following a security checklist drafted by Poland's defence ministry, Marcin Godek, the wind farm's operations and maintenance manager, explained in June. "There is a perfect symbiosis between offshore wind turbines and coastal protection," says Kristof Verlinden, a reserve Belgian coast guard who runs offshore wind farms at the firm, Parkwind. For Verlinden, they are also "sentinels or forward bases looking at the situation 50 kilometres or more from the coast". More eyes Wind farms' growing importance also brings greater risk of attack. 'The threats to offshore energy infrastructure are very real,' says Giles Dickson, CEO of lobby group Wind Europe. 'Assets are being attacked physically, not just cyberattacks," he added, pointing to several cable attacks in the Baltic Sea. The Swedish government recently halted 13 offshore wind farm projects in the Baltic Sea citing 'unacceptable consequences for Sweden's military defence' and interfering with the military. And turbines themselves have previously become the target of surveillance by the Kremlin. Baltic Power mapped potential threats in the region before beginning construction. They quickly fell victim to spoofing, where boats pretend to be someone or somewhere that they are not, and incidents of signals jamming meant plans needed to be overhauled, Godek said. Faced with this new reality, WindEurope has hired ex-military personnel to liaise with NATO. 'You cannot build an offshore wind farm in Belgium now if you do not commit to high levels of data sharing with the military and also commit to host their hardware if they ask you to do so,' said Dickson. Verlinden said Parkwind has the foundations for the coastguard to install multi-use sensors and detection systems. Employees go to the offshore turbines almost daily and report back any irregularities. In Belgium, Parkwind holds joint exercises "to train, verify and demonstrate our readiness towards security threats" with the coast guard, Verlinden said. "And we are ready to share our data such as AIS data, cable DAS, give access to our seaward looking cameras." But the prospect of a web of wind turbines sharing data among themselves, their operators and governments, also raises questions. Pawlak pointed to the need for lawmakers to clarify whether operators should have access to any information they collect. Close collaboration with the military would raise legal questions that are 'not completely clear', he said. Birdwatching Edward Zakrajsek, who handles the European market at radar firm DeTect, said wind turbines have a long history of watching the surrounding area. 'Birds were the first thing, but of course 10 or so years ago private drones hit the market and everyone can fly one now,' he says. Radars are already 'monitoring even individual birds with a 10-kilometre range 24 hours a day', Zakrajsek said, adding that "drones are about the size of a bird'. The more offshore wind farms that can be networked together, the better the surveillance data will be, and Zakrajsek said, 'the further out they are the better'. (rh, vc, jp)
Yahoo
15-05-2025
- Business
- Yahoo
Northland Power Inc (NPIFF) Q1 2025 Earnings Call Highlights: Navigating Challenges with ...
Adjusted EBITDA: $361 million, a 20% decrease compared to Q1 2024. Free Cash Flow: $157 million, 30% lower than Q1 2024. Free Cash Flow Per Share: $0.60 compared to $0.88 in Q1 2024. Commercial Availability: 95% in the offshore wind business. Onshore Fleet Availability: 97%. Construction Spending: $8 billion spent on Hai Long and Baltic Power projects, with $7 billion remaining. Corporate Liquidity: $1.1 billion available. Warning! GuruFocus has detected 7 Warning Signs with NPIFF. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Northland Power Inc (NPIFF) successfully completed the Oneida battery storage project ahead of schedule and under budget, marking it as Canada's largest energy storage project. The company has made significant progress on its offshore wind projects, Hai Long and Baltic Power, with substantial investments and construction milestones achieved. Northland Power Inc (NPIFF) maintains a strong commitment to safety, evidenced by the Honoris CCS Award for innovation and safety received by its EBSA utility in Colombia. The company has a diversified portfolio across geographies and technologies, which helps mitigate risks associated with localized issues such as low wind resources. Northland Power Inc (NPIFF) has a strong balance sheet with $1.1 billion of available corporate liquidity, positioning it well for future growth and development projects. The company's Q1 2025 adjusted EBITDA decreased by 20% compared to the same quarter in 2024, primarily due to historically low offshore wind resources in the North Sea. Free cash flow for the first quarter was 30% lower than the same period last year, reflecting the impact of weak wind conditions. Despite the completion of the Oneida project, the reduction in costs does not directly translate to a one-to-one reduction in equity funding requirements. The company faces challenges in advancing future offshore wind projects due to higher costs and execution risks, as seen in the industry. Northland Power Inc (NPIFF) is experiencing a competitive environment for capital allocation, requiring careful evaluation of growth opportunities to ensure optimal deployment. Q: Can you clarify if the $100 million cost savings on the Oneida project directly reduces the equity funding requirement? A: Jeff Hart, Chief Financial Officer: It's not a one-to-one reduction. Various factors, including debt service and ITCs, influence the equity funding requirement. Q: Has there been any change in the EBITDA cash flow outlook for the Oneida project since its inception? A: Jeff Hart, Chief Financial Officer: We expect the economics to remain within the promised range, with 60% of revenues from capacity payments, aligning with our initial expectations. Q: What are Northland Power's future growth opportunities, particularly in wind or solar projects in regions like Quebec or the UK? A: Christine Healy, President and CEO: We are exploring a variety of opportunities across markets, both organic and inorganic. Each opportunity must compete for capital to ensure the best deployment for shareholder value. Q: How does Northland Power plan to manage the cadence of advancing growth opportunities while focusing on lowering the payout ratio? A: Christine Healy, President and CEO: We are evaluating our pipeline and capital allocation to balance growth with financial discipline. More details will be shared at our upcoming Investor Day. Q: What is Northland Power's perspective on the growth potential for gas-fired power, considering supply chain challenges and cost inflation? A: Christine Healy, President and CEO: We see gas-fired power as crucial for a reliable energy mix. We have good supply chain relationships and options, allowing us to proceed with projects without current constraints. Q: Are there any impacts from the recent grid outage in Spain on Northland Power's operations? A: Christine Healy, President and CEO: There were no negative impacts on our operations in Spain. The team handled the situation well, ensuring safety and operational integrity. Q: What is the expected timeline for generating first power at the Hai Long project, and are there any turbine installation requirements? A: Christine Healy, President and CEO: We expect first power in the back half of this year. There is no minimum number of turbines required for initial power generation, and installation is progressing well. Q: How is Northland Power addressing supply chain challenges for the Hai Long and Baltic projects? A: Christine Healy, President and CEO: We maintain constant vigilance over our supply chain, ensuring delivery on schedule and cost. Our supply chain is currently delivering well, with a strong emphasis on safety. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
07-02-2025
- Business
- Yahoo
Northland and ORLEN begin work on Poland's first offshore wind farm
The offshore construction of the Baltic Power offshore wind farm, a joint venture between Orlen Group and Northland Power, has begun with the installation of monopile foundations in the Baltic Sea. The first two of 78 steel-structured monopiles have been installed. The monopiles will support 15MW wind turbines and offshore substations. With a total capacity of 1.2GW, the Baltic Power wind farm will begin operations in 2026 and generate clean electricity sufficient to power 1.5 million households. Northland Power CEO and president Christine Healy stated: 'As co-developers of Poland's first offshore wind farm, we are excited to contribute our global experience in offshore wind projects and proud of our strong partnership with ORLEN. This achievement demonstrates our progress together and further solidifies our shared commitment to Poland's energy future.' The offshore construction site spans 130km². Its monopiles are 100m long, weigh up to 1,700 tonnes and have a diameter exceeding 9m. A floating installation crane is used to position these foundations into the seabed at depths of 40m. The construction fleet comprises 11 specialised vessels: support ships, tugboats and environmental monitoring ships. The Baltic Power offshore co-ordination centre is managing all offshore construction and maritime traffic. As construction advances, transition pieces will connect the foundations to the turbines, followed by the turbine assembly, offshore substations, inter-array cables and export cables. The installation phase is expected to continue until 2026. The Baltic Power wind farm will become Poland's first offshore wind farm, producing around 4,000 gigawatt hours of zero emission electricity annually. This will lead to a CO₂ emissions reduction of 2.8 million tonnes (mt) per year, compared to traditional power generation. ORLEN SA CEO and president of the management board Ireneusz Fąfara stated: By 2026, energy from the Baltic Sea will be flowing to consumers for the first time. This clean, stable and secure power will drive Poland's economy forward. It also creates opportunities for Polish businesses to grow alongside our project. This is the energy of tomorrow – starting today.' The wind farm is a critical component of the ORLEN Group's strategy, aiming to deploy 4GW of installed capacity in the Baltic Sea through industry partnerships. The ORLEN Group's strategy includes the development of three additional offshore wind farms, with licences already secured. Ireneusz added: 'Already in 2026, the offshore wind farm will be able to cover about 3% of Poland's current energy demand, which corresponds to the needs of more than 1.5 million households. This is a real and very tangible contribution to the country's energy transition.' Offshore wind, combined with energy storage, onshore renewables, gas-fired plants and small modular reactors, will play a pivotal role in Poland's energy transition. Components such as turbine nacelles, subsea cables and offshore substation steel structures are being produced locally. Polish firms are also contributing to geological surveys, engineering design and logistics. "Northland and ORLEN begin work on Poland's first offshore wind farm" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
