Northland Power gets new sun and wind Power Projects

     It took a long time for Northland Power to get completed power purchase agreements (PPA) on it's three wind farms in the North Sea.The projects were built but little revenues were coming in as the PPAs were not signed.Although there was a small delay the first two are now fully commissioned.NPI tells investors not to expect revenues until 20202.But this blog expects pre-completion revenues in Q4 of this year.  Now NPI has released it's first quarter report and it tells shareholders that they have a PPA for the 300MW Hai Long 1 and close to having them for the 232MW Hai Long 2 and 512 MW  Hai Long 3.This is partly due to the fact that they are only 60% owner of these 2 new wind projects;the remaining 40% is owned by Yushan Energy of Taiwan.This makes it easier to get PPAs signed.But Northland has also announced a new solar project in Mexico;this 130MW project has obtained all permits required for construction and is expected to be generating revenues in Q2of 2020.
      First Quarter Highlights
    The first quarter only showed slight growth over Q1 in 2018.
     On May 8 Northland released it's first quarter results and they were largely as most investors expected.They are showing slow, steady growth.Revenues increased 3% from 2018 while adjusted EBITDA increased by 1% to $294 million.Net income increased by 15% to $204 million.                                                                                         This blog expects generally that this trend will continue into Q2.There will be no major changes in Q2 and only small changes in Q3.Investors will have to wait until Q4 to see the initial impact from Deutsche Bucht.But the changes will potentially be quite significant.Adjusted EBITDA may hit $1200-$1300 million and net income may jump to $940 million- $1 billion in 2019. 
        

 2019 is Another Building Year
   Once again Northland is working on not one but two major investment projects.Investors have to see beyond the second and third quarter to get the fruit of their endeavours.But NPI offers a substantial dividend for investors to wait.The fourth quarter should  start to show some pre-completion revenues while Q1 in 2020 will have sizeable gains in revenues and earnings.
    Northland says in their guidance that adjusted EBITDA will be $920 -$1010 million for 2019 and earnings per share of $1.65-$1.95.This blog sees adjusted EBITDA of $1050-$1200 million and e.p.s. of $1.80-$2.00.Investors need to know that  NPI is growing in leaps and bounds.So much so that their net income is almost 65% of Emera Utilities which trades at $55 a share.Consequently this blog sees Northland Power trading at close to $30 by year-end.In other words about 60% of the Emera price.https://www.brookfield.com/