Northland Power Provides Business Update on COVID-19 Situation and Reiterates its 2020 Financial Guidance
TORONTO, March 30, 2020 (GLOBE NEWSWIRE) -- Northland Power Inc. ("Northland" or the "Company") (TSX: NPI) provides an update on the coronavirus ("COVID-19") pandemic’s impacts on its operations.
From a financial perspective, Northland has ample liquidity, a strong balance sheet and given the relative stability of its revenue and free cash flow profile, the Company currently does not
anticipate changes to its 2020 financial guidance as a result of COVID-19.
Northland continues to hold the health and safety of its employees, contractors and communities that it conducts business in as a top priority.
In response to the outbreak of COVID-19, Northland activated its crisis response plans at all of its sites and offices around the world. The Company implemented preventive measures including restricting business travel and shifting the Company's corporate and regional offices to work from home arrangements where possible. At the Company's facilities and job sites, increased screening procedures have been implemented, along with visitor restrictions, directives regarding social distancing, and routine temperature checks for all employees to ensure a safe environment for operations.
Currently, all of Northland’s facilities remain unimpacted by COVID-19 and are operating normally. However, the situation is very fluid, and the Company continues to monitor events and government directives and their potential impacts. The Company will pursue mitigating actions as necessary and available to ensure normal operations. While the offshore wind farms are contracted, there is some limited exposure to the wholesale market price. If market prices persist lower than forecast prices for an extended period, this could impact revenues. To date, the impacts of lower than forecast market pricing have been offset by higher than expected production.
Construction activities at our La Lucha solar project in Mexico are continuing under the expected precautions for COVID-19, including the coordination of communications and protocols with contractors and subcontractors, enhanced hygiene protocols and body temperature screening and other safety measures intended to minimize the potential transmission of COVID-19. The company remains in close communication with suppliers and subcontractors to ensure the project remains on schedule.