The Globe and Mail reports in its Tuesday, Sept. 30, edition that Northland Power is
shifting its sights to European
offshore wind projects. The Globe's Richard Blackwell writes that
in 2013, Northland
bought a 60-per-cent interest in
the Gemini wind project in
the North Sea, off the coast of
the Netherlands. Last month it took another big bite
of European offshore wind -- an
85-per-cent share of the Nordsee
project off Germany's north
coast.
These two ventures should be
generating more than 900
megawatts of power within a
few years, marking a dramatic
shift for Northland. Currently,
most of its operating
power assets are in Canada. By 2018,
thanks to Gemini and Nordsee,
60 per cent of Northland's earnings before interest,
taxes, depreciation and amortization
will come from European
offshore wind.
However, the big investments, which
will require Northland to come
up with boatloads of cash, have
again raised a question that has
dogged the company for years --
can it maintain its dividend,
which at the moment requires it
to pay out more than 100 per
cent of its earnings to shareholders
each month?
Northland head John Brace insists the
company will maintain the dividend.
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