Northland Power reveals the outcomes of the second quarter in the year 2025
Northland Power, a Canadian-owned global power producer, has provided updates on its offshore wind projects and revised its financial outlook for 2025.
The Hai Long offshore wind project, scheduled for full grid connection by 2026, is expected to reach full commercial operation in 2027. The project has made significant progress, with all jacket foundation installations completed ahead of schedule as of August 2025, and already delivering some power to the grid. The Baltic Power offshore wind project is expected to begin commercial operations in 2026, following a similar construction timeline.
| Project | Estimated Completion (Grid Connection) | Commercial Operation Date | |-------------|----------------------------------------|---------------------------| | Hai Long | 2026 | 2027 | | Baltic Power| Nearing completion, commercial operation expected | 2026 |
These updates reflect the progress and operational milestones achieved for both projects, as reported in industry reports and Northland's recent updates.
In terms of financial performance, the decrease in Adjusted EBITDA was due to factors described in the report, primarily lower-than-expected wind resource in offshore wind facilities. This has led to a decrease in Free Cash Flow, which was also affected by a $12 million increase in scheduled debt repayments and a $26 million decrease in Adjusted EBITDA.
Despite these challenges, Northland remains optimistic about its future. The company is pursuing opportunities in offshore wind, onshore renewables, battery storage, and natural gas to enhance its cash flow profile. The favourable impact from a recent tax ruling in Germany has also offset the decrease in Free Cash Flow, with a $31 million increase in German trade tax refund receivable.
Northland expects Adjusted EBITDA to be between $1.2 billion and $1.3 billion in 2025, a decrease from the previous guidance of $1.3 billion to $1.4 billion. Free Cash Flow is now projected to be between $1.15 and $1.35 per share, a decrease from the previous projection of $1.30 to $1.50 per share.
For further information, please contact Adam Beaumont, Senior Vice President, Capital Markets. Northland will hold an earnings conference call on August 14, 2025, to discuss its second quarter 2025 results. The conference call details can be found on the provided URL. The unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, can be found on SEDAR+ and northlandpower.com.
The information in this Outlook constitutes forward-looking information within the meaning of applicable Canadian securities laws. The forward-looking statements in this press release may not be appropriate for other purposes and are subject to risks and uncertainties. The actual results could differ materially from those expressed in, or implied by, these forward-looking statements.
Northland's Common Shares, and Series 1 and Series 2 Preferred Shares trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A and NPI.PR.B, respectively. Northland owns or has an economic interest in 3.5 GW of gross operating generating capacity, 2.2 GW under construction, and a significant inventory of early to mid-stage development opportunities encompassing approximately 9 GW of potential capacity.
For more information about Northland Power and its projects, visit www.northlandpower.com. The call will be broadcast live on the internet and an audio recording will be available on northlandpower.com on August 15, 2025.
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