Northland Power Reports First Quarter 2023 Results and Releases Its Annual Sustainability Report

TORONTO, May 09, 2023 (GLOBE NEWSWIRE) -- Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) reported today financial results for the three months ended March 31, 2023. All dollar amounts set out herein are in thousands of Canadian dollars, unless otherwise stated.

“We are off to a good start in 2023 with first quarter results largely in line with expectations,” said Mike Crawley, Northland’s President and Chief Executive Officer. Strategically, we executed our second asset level sell-down with the sale of a 24.5% interest in our ScotWind offshore wind development projects in Scotland to ESB, a leading Irish energy company. For 2023, our focus remains primarily on advancing our committed projects expected to reach financial close this year. Longer-term, our focus centers on advancing our 20GW pipeline. Our large pipeline allows us to be selective with respect to which projects we ultimately advance.

First Quarter Highlights

Financial results for the three months ended March 31, 2023, were lower compared to the same quarter of 2022 primarily due to the non-recurrence of the unprecedented spike in market prices realized in the first quarter of 2022 at Gemini and the Spanish portfolio.

Financial Results

• Sales decreased to $622 million from $695 million in 2022.
• Gross Profit decreased to $569 million from $636 million in 2022.
• Adjusted EBITDA (a non-IFRS measure) decreased to $352 million from $420 million in 2022.
• Adjusted Free Cash Flow per share (a non-IFRS measure) decreased to $0.72 from $0.84 in 2022.
• Free Cash Flow per share (a non-IFRS measure) decreased to $0.62 from $0.77 in 2022.
• Net income decreased to $107 million from $288 million in 2022.

Sales, gross profit, operating income and net income, as reported under IFRS, include consolidated results of entities not wholly owned by Northland, whereas Northland’s non-IFRS financial measures include only Northland’s proportionate ownership interest.

First Quarter Results Summary

Offshore wind facilities

Electricity production for the three months ended March 31, 2023, was largely in line with the same quarter of 2022.

Sales of $346 million for the three months ended March 31, 2023, decreased 13% or $51 million compared to the same quarter of 2022, primarily due to the non-recurrence of the unprecedented spike in market prices realized in the first quarter of 2022. This decline was partially offset by higher turbine availability at Nordsee One following the completion of the rotor shaft assembly (“RSA”) replacement campaign in 2022 and the effect of foreign exchange fluctuations due to the strengthening of the Euro.

Adjusted EBITDA of $226 million for the three months ended March 31, 2023, decreased 14% or $36 million compared to the same quarter of 2022, due to the same factors as noted above.

An important indicator for performance of offshore wind facilities is the current and historical average power production of the facility. The following tables summarize actual electricity production and the historical average, high and low for the applicable operating periods of each offshore facility:

Regulatory Market Price Cap Changes Effective from December 1, 2022, to June 30, 2023

In response to the unprecedented surge in energy prices across Europe for most of 2022, in September 2022, the EU Council established a cap on market revenues on renewable energy producers effective from December 1, 2022, to June 30, 2023 (the “EU price cap”). Following the implementation of the EU price cap, any revenue above the contracted power purchase price for each facility was capped. Within Northland’s annual guidance, we have not projected any revenue in excess of the contracted Dutch SDE or German EEG price for each facility.

Onshore renewable facilities

Electricity production was 4% or 28GWh lower than the same quarter of 2022, due to lower wind resource across the Canadian onshore facilities, partially offset by higher wind and solar resource at the Spanish facilities.

Sales of $115 million were 10% or $13 million lower than the same quarter of 2022, primarily driven by lower production at the Canadian Onshore facilities and lower pool prices in Spain.

Adjusted EBITDA of $83 million was 17% or $17 million lower than the same quarter of 2022, due to the same factors as above.

Efficient natural gas facilities

Electricity production decreased 7% or 64GWh compared to the same quarter of 2022, due to lower market demand for dispatchable power during the comparatively mild Ontario winter.

Sales of $95 million decreased 6% or $6 million compared to the same quarter of 2022, primarily due to lower energy tariffs as a result of lower natural gas prices.

Adjusted EBITDA of $56 million was largely in line with the same quarter of 2022.

Utility

Sales and gross profit of $65 million and $43 million for the three months ended March 31, 2023, remained in line with the same quarter of 2022.

Adjusted EBITDA of $25 million decreased 8% or $2 million compared to the same quarter of 2022, primarily due to higher operating costs and the foreign exchange fluctuations due to the weakening of the Colombian Peso, partially offset by higher market demand and rate escalations.

Consolidated statement of income (loss)

General and administrative (“G&A”) costs of $23 million in the first quarter increased $3 million compared to the same quarter of 2022, primarily due to personnel and other costs supporting Northland’s global growth, in-line with management’s expectations and annual financial guidance.

Development costs of $24 million increased $7 million compared to the same quarter of 2022, primarily due to timing of spending to advance early to mid-stage development projects.

Net finance costs of $67 million in the first quarter decreased $14 million compared to the same quarter of 2022, primarily due to scheduled repayments on facility-level loans and higher loan repayments related to loan restructurings that occurred in 2022.

Fair value loss on derivative contracts was $83 million in the first quarter, primarily due to net movement in the fair value of derivatives related to commodity, interest rate and foreign exchange contracts.

Foreign exchange gain of $29 million in the first quarter was primarily due to unrealized gain from fluctuations in the closing foreign exchange rates.

Net income of $107 million in the first quarter decreased by $180 million compared to the same quarter of 2022, primarily as a result of the factors described above.

Adjusted EBITDA

The following table reconciles net income (loss) to Adjusted EBITDA:

Adjusted EBITDA of $352 million for the three months ended March 31, 2023, decreased 16% or $68 million compared to the same quarter of 2022. The significant factors decreasing Adjusted EBITDA include a $36 million decrease in operating results at the offshore wind facilities and an $11 million decrease in the contribution from the Spanish renewables portfolio primarily due to the factors described above.

Adjusted Free Cash Flow and Free Cash Flow

The following table reconciles cash flow from operations to Adjusted Free Cash Flow and Free Cash Flow:

Adjusted Free Cash Flow of $180 million for the three months ended March 31, 2023, was 6% or $12 million lower than the same quarter of 2022.

The significant factor decreasing Adjusted Free Cash Flow was $68 million decrease in contribution from offshore wind and onshore renewable facilities leading to lower Adjusted EBITDA.

The factors partially offsetting the decrease in Adjusted Free Cash Flow were:

• $20 million increase primarily from foreign exchange hedge settlements; and
• $17 million decrease in net finance costs primarily due to scheduled repayments on facility-level loans and higher loan repayments related to loan restructurings at Gemini and the Spanish portfolio in 2022.

Free Cash Flow, which is reduced by growth expenditures, totaled $155 million for the three months ended March 31, 2023, and was 11% or $20 million lower than the same quarter of 2022, due to the same factors as Adjusted Free Cash Flow.

The following table reconciles Adjusted EBITDA to Adjusted Free Cash Flow.

Refer to Northland’s 2022 Annual Report for additional information on sources of liquidity in addition to Adjusted Free Cash Flow.

Significant Events and Updates

Northland’s global activities are exposed to general economic and business conditions, including elevated inflation levels, higher interest rates and increases in capital costs, fluctuations in currency, economic conditions in the countries and regions in which the Company conducts business, and potential interruptions to the global supply chains. The Company’s activities are also subject to regulatory risks and changes in regulation or legislation affected by political developments and by national and local laws and regulations. This could include restrictions on production, changes in taxes, and other amounts payable to governments or governmental agencies, price or rate controls that result in changes to market prices for power generated, reduced revenues or cash flows for operating assets, higher cost of operations, and the introduction of legal and administrative hurdles. The Company’s ability to execute on large development projects is also dependent on its ability to secure project and corporate financing, which may not always be available or available on terms acceptable to Northland. Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements.

The Company continues to monitor these and other developments and is taking actions intended to manage exposure to and impact of these events. These actions include, but are not limited to, conducting targeted debt refinancing for existing operating facilities to enhance cash flows and corporate liquidity, and implementing hedging strategies on development assets to provide greater certainty to costs and to actively manage economic returns of the projects. In addition, the Company consistently looks for opportunities to optimize its portfolio to create value, manage risk, enhance financial flexibility and drive enhanced performance in line with its strategic objectives.

Balance Sheet:

• Extension of EBSA’s Credit Facility – As part of its long-term financing strategy for EBSA, Northland extended the maturity date of EBSA’s non-recourse credit facility (the “EBSA Facility”) from December 15, 2024, to March 30, 2026, at effectively the same interest rate. The EBSA Facility is denominated in Canadian dollars, and Northland has hedged the principal amount 100% against changes in the Colombian peso. As part of the extension, the Company realized a hedge settlement gain of $22 million, which offset a weaker Colombian peso since the loan was originally restructured in December 2021. The gain will be equally recognized in Northland’s Adjusted Free Cash Flow and Free Cash Flow over the four quarters of 2023 and was included within Northland’s 2023 financial guidance.
• Redemption of Series 3 Preferred Shares – On January 3, 2023, Northland completed the previously announced redemption of all 4,800,000 of its issued and outstanding Cumulative Rate Reset Preferred Shares, Series 3 (the “Series 3 Preferred Shares”) at a price of $25.00 per Series 3 Preferred Share together with all accrued and unpaid dividends of $0.3175 per Series 3 Preferred Share for an aggregate total of $121.5 million.
• At-The-Market Equity Program – During the first quarter, Northland took a more moderate approach to the use of its at-the-market equity program (“ATM program”), taking into consideration its financial close capital requirements in 2023 and the current share price. Year-to-date as at May 9, 2023, the Company issued a total of 1,210,537 common shares for gross proceeds of $42 million at an average price of $34.43 per share. The proceeds raised to date are intended to be used to fund projects that are expected to achieve financial close in 2023.
• Sustainability Report – Northland released its sixth annual Sustainability Report, showcasing achievements in 2022 relating to its Environmental, Social and Governance (“ESG”) objectives and targets, as well as the establishment of its 2040 Net Zero target. The report is available at northlandpower.com.

Renewables Growth:

• ScotWind Partnership – Following a competitive process in 2022 to secure a partner to join the development of the ScotWind offshore wind projects. On May 9, 2023, Northland signed definitive agreements with ESB, a leading Irish energy company for a 24.5 % interest in both projects. The partnership with ESB demonstrates the strong interest in ScotWind and in developing offshore wind in Scotland and provides an opportunity to bring in a strong, long-term partner to share in the costs and help advance the development process.
• Oneida Battery Storage Project – The project successfully executed a 20-year Energy Storage Facility Agreement (“ESFA”) with the Independent Electricity System Operator (“IESO”) that offers monthly capacity payments. The remainder of the revenue will come from operating the battery on the wholesale market. The project also finalized a battery supply agreement, and a long-term service agreement with Tesla Inc., to supply key components and services, and an EPC agreement with Aecon Group Inc. for designing, engineering and constructing the facility. On March 30, 2023, Northland and its partners signed a credit agreement with an external lender, subject to final closing conditions, that will allow the project to access approximately $700 million in senior and subordinated debt financing in connection with achieving financial close. Financial close for the project is expected in 2023, with full commercial operations to commence in 2025.
• Hai Long Offshore Wind Project – The Hai Long early construction works program and fabrication of key components continue to progress. The project received its major construction permit as planned. The project financing is progressing towards financial close in 2023, albeit slower and under more challenging conditions than expected due to market specific factors. The final credit approval process was launched in March 2023 to secure the necessary funding commitments from local and international lenders and Export Credit Agencies (“ECAs”) to achieve financial close. Furthermore, in the quarter, Northland signed an amendment to the Corporate Power Purchase Agreement (the “CPPA”) that resulted in the extension of the CPPA tenor by two years from 20 to 22 years.
• Baltic Power Offshore Wind Project – The project continues to advance toward financial close, expected in 2023. Baltic Power is in the process of finalizing contracts with suppliers for key components. The continued inflationary price environment is expected to result in the total project cost being in excess of the previously expected range of $5 billion to $6 billion. The increase in project costs is expected to be almost fully funded by non-recourse debt. The project’s 25-year Contract for Difference (“CfD”) offtake agreement, which was initially denominated in Polish Zloty will now be denominated in Euros at effectively the same rate and inflation indexation will commence with a base year of 2021 (from 2022 previously), providing offsetting benefits to the higher inflationary price pressures experienced. Northland’s equity funding expectations and returns remain in line with prior disclosures.
• New York Onshore Wind Projects – Construction activities at the 112MW Bluestone project and the 108MW Ball Hill project continue, with all of the turbines at Bluestone having been installed and pre-commissioned and installation of the turbines at Ball Hill progressing. Once installation and commissioning of all turbines are completed, commercial operations are expected to occur in 2023.
• South Korean Offshore Wind Project – Electricity Business Licenses (“EBLs”) for the full 1,000MW capacity at Dado Ocean have been secured, providing exclusivity on the leases for the project. In addition, Northland’s second project, the 600MW Bobae project, has been awarded EBLs for approximately 400MW, and work continues on securing EBLs for the remaining 200MW. Other development activities for the projects are continuing to advance.
• La Lucha Mexican Solar Project - Northland continues to work to achieve commercial operations at its 130MW La Lucha solar project in Mexico. The project was connected to the Mexican grid and energized. The project is now coordinating with the relevant authorities on the final procedures to achieve full commercial operations, which is expected in 2023.
  

Facility Optimizations:

• Thorold upgrade – As part of the Ontario government’s energy transition and security policies, and consistent with Northland’s strategy to optimize existing operating facilities to enhance value and performance, Northland plans to carry out an upgrade of its 265MW Thorold Co-Generation facility in Ontario, Canada. The optimization will result in an increase to the electricity generating capacity of the facility by 23MW, an expected improvement in the facility’s heat rate, which could decrease overall emissions intensity at the facility, without impacting Northland’s 2040 carbon neutral targets and will provide an additional fixed contract revenue stream for Northland. The upgrade is expected to be in service by the end of 2024. On April 24, 2023, as part of our optimization of the facility, Northland was awarded a 5-year extension of the PPA for Thorold by IESO from 2030 to 2035. Concurrently, Northland completed the restructuring of Thorold’s project debt with (i) additional debt of $26 million to finance the upgrade; (ii) a decrease in all-in interest rate to 6.4% (previously 6.7%); and (iii) reduction of certain LC requirements. Thorold will continue to operate under a dispatch model.

Sustainability Report

The 2022 sustainability report provides enhanced disclosures on Northland’s sustainability efforts. It includes metrics and information related to its supply chain (including contractor health & safety, scope three greenhouse gas emissions and supplier management) as well as additional detail on human capital and talent development and engagement. Additional information on Northland’s 2040 Net Zero target is also available within the report. The report has been prepared in accordance with the Global Reporting Initiative (“GRI”) Standards core option and alignment with the Sustainability Accounting Standards Board (“SASB”) recommendations and the Taskforce for Climate-Related Financial Disclosures (“TCFD”). To read the report in full, visit northlandpower.com.

Funding Strategy

In 2023, Northland’s focus is on achieving financial close on the Baltic Power and Hai Long offshore wind projects as well as the Oneida battery storage project in Ontario, Canada. The project finance process for each of the three projects is currently progressing and is estimated to aggregate to a requirement for $12.5 billion of project finance debt. They are presently in active workstreams with resources and efforts focused on securing all necessary milestones and conditions precedent to achieve financial close. Collectively the project finance processes are being supported by a diverse group of Northland’s project partners, lenders, including global financial institutions, local lenders, export credit agencies (“ECAs"), government infrastructure lenders and multi-lateral agencies. At this time, Northland intends to utilize non-recourse project-level financing as the primary source of funding, with Northland’s equity requirements expected to be supported by cash on hand, proceeds from sell-downs, asset sales, the use of corporate hybrid debt and to a lesser extent equity issuances under its ATM program. At this time and based on current market conditions, management believes the Company will have access to the necessary capital required to achieve financial close of the three aforementioned projects.

2023 and Long-term Outlook

As of May 9, 2023, management’s 2023 financial outlook remains unchanged from prior guidance. Adjusted EBITDA in 2023 is expected to be in the range of $1.2 billion to $1.3 billion, Adjusted Free Cash Flow per share in 2023 is expected to be in the range of $1.70 to $1.90 and Free Cash Flow per share in 2023 is expected to be in the range of $1.30 to $1.50. Adjusted Free Cash Flow excludes approximately $100 million (approximately $0.40 per share) in growth expenditures that support growth and new initiatives. These growth expenditures are expected to support secured projects, including, ScotWind, the South Korean projects, and the recently acquired Alberta solar portfolio, in addition to other Canadian and US opportunities.

Northland has access to $580 million of available liquidity, including $74 million of cash on hand and approximately $506 million of capacity on its corporate revolving credit facility as at March 31, 2023, which can be utilized to fund growth projects as they ultimately advance to financial close. As expected, available liquidity has decreased by approximately $400 million, as compared to December 31, 2022, primarily due to capital investments in the Hai Long and Baltic Power offshore wind projects to advance the projects.

Northland continues to implement a selective partnership strategy to sell interests in certain development projects on or before financial close. The Company will assess each opportunity individually and intends to remain a long-term owner of the majority of the renewable projects it develops. Any gains (or losses) from the future sell-down of ownership interests in development assets would be included in Adjusted Free Cash Flow and Free Cash Flow as they relate to capturing development profits at key milestones.

In 2023, Northland’s focus is on achieving financial close on the Baltic Power and Hai Long offshore wind projects as well as the Oneida battery storage project in Ontario, Canada. Over the longer term, as previously disclosed at our 2023 investor day in February 2023, Northland remains positioned to achieve substantial growth in Adjusted EBITDA by 2027, upon achieving targeted commercial operations of Baltic Power and Hai Long. With 3 gigawatts (GW) of gross operating capacity and a robust development pipeline of nearly 20GW, the Company is well positioned for an accelerating global energy transition. Northland intends to be selective and pursue only the projects within its pipeline that meet its strategic objectives and targeted returns.

First-Quarter Earnings Conference Call

Northland will hold an earnings conference call on May 10, 2023, to discuss its 2023 first quarter results. The call will be hosted by Northland’s Senior Management, who will discuss the Company’s financial results and developments as well as answering questions from analysts.

Conference call details are as follows:

Wednesday, May 10, 2023, 10:00 a.m. ET

Participants wishing to join the call and ask questions must register using the following URL below:

https://register.vevent.com/register/BIca19226ebfb844e19b7429fb0cecd68d

For all other attendees, the call will be broadcast live on the internet, in listen-only mode and can be accessed using the following link:

Webcast URL: https://edge.media-server.com/mmc/p/on2b8jq3

For those unable to attend the live call, an audio recording will be available on northlandpower.com on May 11, 2023.

Northland’s unaudited interim condensed consolidated financial statements for the three months ended March 31, 2023, and related Management’s Discussion and Analysis can be found on SEDAR at www.sedar.com under Northland’s profile and on northlandpower.com.

Annual Meeting of Shareholders

Northland Power will hold its Annual Meeting of Shareholders (“Meeting”) on Thursday, May 18, 2023, at 11:00 a.m. ET. Northland Power’s Annual meeting of shareholders will be held in a virtual-only meeting format. Shareholders will not be able to attend the meeting physically.

Shareholders can attend the Meeting online, vote their shares electronically and submit questions during the Meeting, by visiting www.virtualshareholdermeeting.com/NPI2023

Instructions are available at https://www.northlandpower.com/en/investor-centre/annual-general-meeting.aspx

ABOUT NORTHLAND POWER

Northland Power is a global power producer dedicated to helping the clean energy transition by producing electricity from clean renewable resources. Founded in 1987, Northland has a long history of developing, building, owning and operating clean and green power infrastructure assets and is a global leader in offshore wind. In addition, Northland owns and manages a diversified generation mix including onshore renewables, efficient natural gas energy, as well as supplying energy through a regulated utility.

Headquartered in Toronto, Canada, with global offices in eight countries, Northland owns or has an economic interest in 3.0GW (net 2.6GW) of operating capacity. The Company also has a significant inventory of projects in construction and in various stages of development encompassing over 20GW of potential capacity.

Publicly traded since 1997, Northland's common shares, 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.

NON-IFRS FINANCIAL MEASURES

This press release includes references to the Company’s adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”), Adjusted Free Cash Flow, Free Cash Flow and applicable payout ratios and per share amounts, which are measures not prescribed by International Financial Reporting Standards (“IFRS”), and therefore do not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. Non-IFRS financial measures are presented at Northland’s share of underlying operations. These measures should not be considered alternatives to net income (loss), cash flow from operating activities or other measures of financial performance calculated in accordance with IFRS. Rather, these measures are provided to complement IFRS measures in the analysis of Northland’s results of operations from management’s perspective. Management believes that Northland’s non-IFRS financial measures and applicable payout ratio and per share amounts are widely accepted and understood financial indicators used by investors and securities analysts to assess the performance of a company, including its ability to generate cash through operations.

FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that are provided for the purpose of presenting information about management’s current expectations and plans. Readers are cautioned that such statements may not be appropriate for other purposes. Northland’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, the events anticipated by the forward-looking statements may or may not transpire or occur. Forward-looking statements include statements that are not historical facts and are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects,” “anticipates,” “plans,” “predicts,” “believes,” “estimates,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” These statements may include, without limitation, statements regarding future Adjusted EBITDA, Adjusted Free Cash Flow and Free Cash Flow, respective per share amounts, dividend payments and dividend payout ratios, guidance, the completion of construction, acquisitions, dispositions, investments or financings and the timing thereof, attainment of financial close and commercial operations, the potential for future production from project pipelines, cost and output of development projects, litigation claims, statements regarding Northland’s sustainability and environmental, social, and governance goals, including its 65% reduction of its greenhouse gas emissions intensity by 2030 (from 2019 baseline), plans for raising capital, and the future operations, business, financial condition, financial results, priorities, ongoing objectives, strategies and the outlook of Northland, its subsidiaries and joint ventures. There is a risk that delays in closing the financings, failure to obtain the anticipated level of finance commitments and failure to close one or more financings could affect construction schedules and/or Northland’s cash or credit position and capital funding needs. These statements are based upon certain material factors or assumptions that were applied in developing the forward-looking statements, including the design specifications of development projects, the provisions of contracts to which Northland or a subsidiary is a party, management’s current plans and its perception of historical trends, current conditions and expected future developments, the ability to obtain necessary approvals, satisfy any closing conditions, or obtain adequate financing regarding contemplated construction, acquisitions, dispositions, investments or financings, as well as other factors, estimates and assumptions that are believed to be appropriate in the circumstances. Although these forward-looking statements are based upon management’s current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties. Some of the factors include, but are not limited to, risks associated with sales contracts, the emergence of widespread health emergencies or pandemics, Northland’s reliance on the performance of its offshore wind facilities at Gemini, Nordsee One and Deutsche Bucht for approximately 50% of its Adjusted EBITDA, counterparty risks, contractual operating performance, variability of sales from generating facilities powered by intermittent renewable resources, offshore wind concentration, natural gas and power market risks, commodity price risks, operational risks, recovery of utility operating costs, Northland’s ability to resolve issues/delays with the relevant regulatory and/or government authorities, permitting, construction risks, project development risks, acquisition risks, procurement and supply chain risks, financing risks, disposition and joint-venture risks, competition risks, interest rate and refinancing risks, liquidity risk, inflation risks, impacts of regional or global conflicts, credit rating risk, currency fluctuation risk, variability of cash flow and potential impact on dividends, taxation, natural events, environmental risks, climate change, health and worker safety risks, market compliance risk, government regulations and policy risks, utility rate regulation risks, international activities, cybersecurity, data protection and reliance on information technology, labour relations, reputational risk, insurance risk, risks relating to co-ownership, bribery and corruption risk, terrorism and security, legal contingencies, and the other factors described in the “Risks Factors” section of Northland’s Management’s Discussion and Analysis and Annual Information Form for the year ended December 31, 2022, which can be found at www.sedar.com under Northland’s profile and on Northland’s website at northlandpower.com. Northland has attempted to identify important factors that could cause actual results to materially differ from current expectations, however, there may be other factors that cause actual results to differ materially from such expectations. Northland’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, and Northland cautions you not to place undue reliance upon any such forward-looking statements.

The forward-looking statements contained in this release are, unless otherwise indicated, stated as of the date hereof and are based on assumptions that were considered reasonable as of the date hereof. Other than as specifically required by law, Northland undertakes no obligation to update any forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

For further information, please contact:

Mr. Wassem Khalil, Senior Director, Investor Relations

647-288-1019

investorrelations@northlandpower.com

northlandpower.com