Longueuil-based Innergex, owner of a huge portfolio of green energy projects around the world, will halve its dividend to free up funds to be reinvested.
Innergex Renewable Energy offered a quarterly dividend of 18 cents per share to date. This amount is reduced to 9 cents per quarter, for a total of 36 cents per share annually.
As a result, Innergex “expects to unlock approximately $75 million per year to support its growth ambitions,” the company said on the sidelines of its annual financial results presentation on Wednesday.
“Currently and looking forward, we have proactively decided to align our strategy towards accelerated growth by releasing capital to support organic development opportunities,” added Innergex President and Chief Executive Officer Michel Letellier.
At the same time, the company announced that it plans to buy back 5% of its approximately 204 million outstanding shares.
The value of Innergex shares has been falling on the Toronto Stock Exchange for three years. After reaching a high of over $32 in January 2021, the stock gradually declined and was worth $7.16 at Wednesday's close.
Net loss increases
The company ended 2023 with earnings before interest, taxes, depreciation and amortization (EBITDA) of $735 million, up 12% year over year.
Despite all this, the company ended its 2023 fiscal year with a net loss of almost $106 million, compared to a loss of $91 million in 2022.
Innergex's electricity production reached 90% of its long-term average in 2023. The company announced a good year of hydroelectric production in the United States and wind power in France, tempered by lower production from its wind farms in Quebec and a drop in electricity prices in Chile.
“As we advance our construction projects, we continue to win new projects, which confirms our value proposition and ultimately supports our growth trajectory,” commented Michel Letellier.
Innergex currently has four projects under construction; a wind farm in France, a wind farm in the United States, a solar farm with storage facilities in Hawaii and energy storage infrastructure in Chile.