Northland Power's Second Quarter Results -- Waiting for Q4

 On August 7 Northland Power released it's second quarter results and there was little growth over Q2 2018.That is because Northland's two big projects are not yet completed but there is some good news.There is a rainbow with a pot of  gold behind this story. Firstly all Northland Power's financial and performance 

indicators are ahead of Q2 in 2018.But more importantly NPI is nearing completion on it's North Sea wind farm called Deutsche Bucht.And it has started construction on it's first  solar project in Mexico called La Lucha;Northland says there will be others  to follow in Mexico.Lastly it is developing sub projects for it's offshore Taiwan wind farms and will be ready to execute power purchase agreements in late 2019. These matters were discussed in an earlier Workathon blog dated February,14,2019 

Second Quarter Highlights

Most financial indicators were up in Q2 but only slightly so.Revenues were ahead by 2% over Q2 in 2018.While adjusted EBITDA was up by 6%.Lastly free cash flow per share decreased by 5% -- from $.21 to $.20 per share.And net income increased by 10% to $76 million.NPI also adds that La Lucha has started construction and will be finished in the second half of 2020.In addition, 25 of 33 turbines have been installed in the North Sea and DeBu has generated it's first KWH of pre-completion revenue already.Perhaps there will be  a substantial amount of pre- completion North Sea off shore revenue by September 30.

                     Totals for the 6 months were a little better as revenues were up to  $842 million.While net income moved to $280 million from $245 million in 2018.And adjusted EBITDA was ahead by 3% over 2018 to $488 million.Northland says that this is on track to hit

 EBITDA of $1200-$1300 million for 2019. 

Good Growth for last 4 years 

Northland showed only modest growth this quarter.And will have only little increase in Q3.Investors will have to wait until Q4 for their reward.But investors have been rewarded well over the last four years.Revenues have doubled from $728 million to$1555 million in 2018.Operating income almost tripled as it went from $383 million to $1134 million.In addition, net income showed tremenduous gains as it went from $27 million to $405 million in 2018.True, the dividend only increased slightly over the four year period.But Northland Power has made some large and very profitable investments in the North Sea.   

Comparison to Emera 

 This blog considers Emera one of,if not the best run,and most stable Canadian utilities.At first glance these two utilities seem like David and Goliath.Emera has certainly been around for longer and has grown it's dividend quite well but Northland Power has made tremenduous gains recently.In 2018 NPI's revenues were only about 25% of Emera revenues  but at the same time they made up almost 55% of Emera net income.This with two big projects schedule to finish by Q2 of 2020 and one of these in Q4 2019.Northland constructs quite large projects (Deutsche Bucht is a $1.4 billion project).So this blog sees that Northland's net income may be 60% of Emera net income by Q2 of 2020.Emera is trading at $56 to $58 per share so why shouldn't Northland trade at 60%  of this value or at least $30 per share.    https://www.brookfield.com/https://www.omers.com/      

Blackline Safety is in a Breakout Pattern

    Blackline Safety is a junior technology leader and it released it's second quarter results on June 27.Blackline (BLN) paints a fairly rosy picture.Quarterly revenues have doubled from Q2 in 2018;they were $8.2 million in 2019 for a whopping118% increase over 2018.Cash and short term investments stood at $34 million.Although they still incurred a $4.8 million loss versus a $4.5 million loss in 2018.But importantly adjusted EBITDA was $253,000 for Q2  versus a $104,000 loss in 2018 and for 6 months it was $286,000 versus a $239,000 loss in 2018.A 343% gain for the quarter and a 220% increase for the first half.
       New Products and New Revenues
   Like in the picture above BLN has room to grow with it's present stable of products;some of which are newly acquired.This blog has given several good leads to BLN on my Site123.com website.Details are available  for several dates on Site123.com.It is clear that Blackline has substantial cash on hand and a strong capital structure that has allowed accretive investments.Further revenue increases are expected throughout 2019 from these solid investments.                       

      Blackline Safety has a Special Niche
    BLN is a very well managed company and is seen by this blog as poised for new acquisitions.It's recent growth spurt has been caused by products from it's recent acquisitions.But BLN has a special niche and special products.This niche has less competition than does many junior technology companies.And this blog ( see the picture above) has another small acquisition lined up;this will be in the business of wireless transmissions to employees and wireless security similar to BLN's present business and should fit in well.If this new acquisition gets tucked in and is accretive to  EBITDA then look for Blackline Safety to be in the high $6 range by yearend.         https://www.zacks.com/  https://www.omers.com/