Innergex Renewable Energy Inc Q3 2018 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Nelson Ng - RBC Capital Markets, LLC, Research Division - Analyst : Just a quick follow-up from Sean's question on Saskatchewan and SaskPower. In terms of the power price being something well below $42 per megawatt hour. Are you guys generally competitive within that range?

Question: Nelson Ng - RBC Capital Markets, LLC, Research Division - Analyst : And then in terms of, I guess the competitive tension or bidding tension, how -- do you see it -- has it changed at all with long-term interest rates rising? And is that -- like are bidders looking to kind of improve their development returns in light of higher interest rates? And then can you also talk about the, I guess, competitive tension on the turbine manufacturing side?

Question: Nelson Ng - RBC Capital Markets, LLC, Research Division - Analyst : And then just moving on to France. The wind resources being pretty weak this past quarter. I think that's been weak like all year -- I mean even last year. Like, are you guys looking to -- do you think that it's just normal variations in wind? Or are you guys looking to kind of change the way change your definition of long-term average? And also finally, can you just talk about wind in October? Was that a little weak as well?

Question: Nelson Ng - RBC Capital Markets, LLC, Research Division - Analyst : No, you answered the full question. Can I just quickly touch on Ford city? So you've essentially started construction to a limited degree. Are all of the costs essentially locked out and the final hurdle is really to close tax equity and financing? And then on those costs, I think earlier this year you mentioned that the total cost will be below USD 400 million. Is that still the case?

Question: Benjamin Pham - BMO Capital Markets Equity Research - Analyst : Before I forget, [also best wishes to you Jean], and welcome Jean-Frantois. A question going back to HS Orka. Can you help me, and also let's try to quantify the book value on your balance sheet? I mean, maybe just point us how to think about it. Because I think there's some hold-co debt and then Blue Lagoon, I'm not sure that's booked in the assets of the HS Orka. Maybe just kind of walk through whether it's -- how to calculate or if you know what the book value is. I'm sure you know what it is, but can you share what it is? Jean Perron - Innergex Renewable Energy Inc., Prior to Reverse Merger with Innergex Power Income Fund - Former CFO and VP Well, the book value is disclosed in the notice financial statement, where we're showing the worldwide investment in the entities that have minority interests. So I would like to look at which note it is exactly, but you're going to see it. And basically it shows that the purchase price we have allocated to HS Orka, which includes a 30% participation into Blue Lagoon, is about $350 million roughly.

Question: Benjamin Pham - BMO Capital Markets Equity Research - Analyst : Okay. All right. That's kind of what I was generally getting. And then the Hawaii situation, was that part of the Alterra portfolio at all?

Question: Benjamin Pham - BMO Capital Markets Equity Research - Analyst : Okay. And then maybe can I switch to Chile, and you highlighted previously a very attractive opportunity for your long-term pricing and development. How do you guys think about the potential for a global recession occurring and impact on power prices and demand for copper overall? Does that just slow down in near-term accretion expectations in that asset? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. NOVEMBER 14, 2018 / 2:00PM, INE.TO - Q3 2018 Innergex Renewable Energy Inc Earnings Call

Question: Benjamin Pham - BMO Capital Markets Equity Research - Analyst : Okay. And I just want to clarify that point. So it sounds like you built a very good downside protection to get a decent return. But you haven't necessarily factored in a global recession near term. And if that were to occur, I'm not saying it will, that maybe some development opportunities could slip into the future.