Pattern Energy Group, a U.S.-based independent power company, credits new wind energy assets for sizable year-over-year increases in both its electricity sales and adjusted EBITDA during the third quarter of 2015 (Q3'15).
According to its latest financial report, Pattern Energy sold 1,256,403 MWh of electricity on a proportional basis in the Q3'15 compared to 710,326 MWh sold in the same period in 2014. Furthermore, the company sold 3,390,081 MWh of electricity on a proportional basis for the nine months ended Sept. 30 compared to 2,026,235 MWh sold in the same period in 2014.
The company says these increases are primarily the result of the commencement of commercial operations at various projects throughout 2014 and 2015, as well as the acquisition of new projects in 2015.
Specifically, commencement of commercial operations at the Panhandle 2, Grand, K2 and Logan's Gap wind projects and the acquisitions of Lost Creek, Post Rock and noncontrolling interests in Gulf Wind impacted both the quarterly and year-to-date periods.
Pattern adds that the year-to-date increase was also positively impacted by the first full period contribution from commencement of commercial operations at the South Kent, Panhandle 1 and El Arrayan wind farms at various times during 2014. Overall, production met the company's expectations for the third quarter compared to its long-term forecast.
The company suggests even more wind power assets are slated to join its energy portfolio soon. For example, the 150 MW Amazon Wind Farm project in Indiana is currently under construction and slated to be online in the fourth quarter.
In addition, Pattern Energy has the right of first offer (ROFO) on a pipeline of acquisition opportunities from Pattern Development, and the identified ROFO list stands at 1.27 GW of total owned capacity.
Pattern Energy's adjusted EBITDA was $58.7 million for Q3'15 compared to $44.3 million in the same period last year. Adjusted EBITDA was $172.3 million for the nine months ended Sept. 30 compared to $140.4 million in the same period last year. Again, the company says the increases for the quarterly and year-to-date periods were primarily attributable to the commencement of commercial operations at various projects.
‘We have achieved substantial growth since our [initial public offering in 2013]," says Mike Garland, president and CEO of Pattern Energy. ‘We believe we are well positioned to grow our business with our existing asset base and cashflows, the absence of any IDRs, our internal management structure and the high degree of flexibility provided by our private sponsor.’
Photo courtesy of Pattern Energy Group: The company's 283.2 MW Gulf Wind Farm, located in Armstrong, Texas.