Boralex stock surges over 10% as strong wind powers Q1 profit

Shares of Canadian renewable energy firm Boralex (BLX.TO) climbed over 10 per cent on Wednesday. The company says higher production at its North American wind farms was the main factor behind a 62 per cent year-over-year jump in net income in its first quarter of 2024.

Montreal-based Boralex primarily operates in Quebec, France, and the United States, specializing in wind, solar, and hydroelectric power, as well as energy storage solutions. On Wednesday, the company said its North American wind business partially offset weaker power generation and sales revenue in Europe.

Toronto-listed shares rose 9.6 per cent to $32.18 as at 1:02 p.m. ET. Renewable energy and utilities stocks were among the top performers in Wednesday's session. Innergex Renewable Energy (INE.TO) and Northland Power (NPI.TO) gained about seven and four per cent, respectively.

Boralex reported its latest financial results before the opening bell. The company booked $73 million in net income, up $28 million from the first quarter of 2023. At the same time, adjusted profit rose about 17 per cent year-over-year to $195 million.

“Demand for renewable energy remains high in all of our core markets, with strong commitments from government[s] to reduce their carbon footprint, and strong demand from corporations,” chief executive officer Patrick Decostre said on a conference call with analysts Wednesday morning.

Geographically, France represents the largest chunk of the company’s more than 3,000 MW of renewable energy capacity at 41 per cent, followed by Canada (35 per cent), and the U.S. (24 per cent). By power source, 86 per cent of the company’s assets are weighted to wind power, with solar and hydro accounting for eight and six per cent, respectively.

Boralex has a large pipeline of wind, solar, and storage projects in works that are set to more than double its installed capacity by 2030.

However, on Wednesday, RBC Capital Markets analyst Nelson Ng suggested the stock could react positively to the company’s recent unsuccessful bid to participate in a large-scale solar project in New York.

“In January 2024, Boralex rebid 240 MW of developments that were no longer economic (due to higher interest rates and inflation),” Ng wrote in a note to clients.

“Boralex has since been informed that none of its projects were selected.”

Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.

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