Yahoo Finance Take Part in the Clean Energy Revolution With an Investment in Northland Power Inc.
Northland Power Inc. (TSX:NPI) is coming off a strong performance in 2017 that saw the company increase its revenues by 25% from $1.1 billion in 2016 to $1.4 billion and grow its gross profits 37% from $876 million to $1.2 billion, surpassing the $1 billion mark for the first time in the company’s history.
“Northland achieved outstanding financial, operational and development results in 2017,” noted John Brace, Northland’s CEO.
In addition to new records in sales and gross profits Northland also completed two offshore wind projects totaling €4 billion, acquired a third offshore wind project with a total project cost of €1.3 billion, and achieved a 22% increase in adjusted EBITDA, along with a 6% increase in free cash flow year over year, which helped contribute to the company raising its dividend by 11% for the upcoming year.
One of Canada’s first independent power producers
Northland’s history dates all the way back to 1987 when the company first established itself as one of Canada’s original independent power producers.
Since then, Northland has been dedicated to generating intelligent energy solutions that will help build a more sustainable future for our planet, all while maintaining a focus on delivering long-term returns for shareholders.
Northland’s focus is on thermal and wind energy projects
Northland got its start by mainly focusing on thermal energy facilities; its first, located in Thorold, Ontario, was a 265 MW operation in 2010, but lately Northland has shifted gears towards some large wind farms, particularly in the European market.
Thanks to a couple of multi-billion projects in Europe’s North Sea, Northland today finds itself as a leader in the European offshore wind sector, according to Wind Europe.
Once the company’s third project, Deutsche Bucht, has been completed, which should be sometime in 2019, the company’s offshore wind portfolio is expected to be able to produce enough electricity to meet the needs of over three million people, while also helping to reduce carbon dioxide emissions by over 2.6 million tonnes per year, according to the European Union’s carbon dioxide reduction targets.
Management’s interests are firmly aligned with the company’s shareholders
In addition, Northland offers investors a business that is managed by a team of executives with a combined 200 years of power industry experience.
That includes recent additions to the C-suite, including a new chief operations officer, Troy Patton, who brings with him over 20 years of experience in the power-generation industry, and Morten Melin as executive vice president, who has experience managing more than 25 offshore wind projects in his career.
Investors in Northland can rest assured that their interests are firmly aligned with the company’s management team, with the current management holding a very significant 34% ownership in Northland.
Bottom line
For what it’s worth, Northland is certainly a “feel-good” story in that you know an investment in the company is helping contribute to a healthier future for our planet.
But if you still aren’t convinced Northland is right for, but you still want to get involved in renewable energy, you might want to check out Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP), Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN), or TransAlta Renewables Inc. (TSX:RNW).
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Fool contributor Jason Phillips has no position in any of the stocks mentioned. Brookfield Renewable Partners is a recommendation of Dividend Investor Canada.
