Topic: How To Invest

Pat: Could you give an update on Northland Power?

Article Excerpt

Northland Power Inc., $17.15, symbol NPI on Toronto (Shares outstanding: 149.7 million; Market cap: $2.9 billion; www.northlandpower.ca), develops, builds, owns and operates natural-gas-fired power plants, wind farms, solar projects and hydroelectric facilities. The company converted to a corporation from an income trust on January 1, 2011. Northland owns or has stakes in 1,345 megawatts of operating generating capacity, with an additional 640 megawatts (400 megawatts net to Northland) under construction and another 456 megawatts (348 megawatts net to Northland) with awarded power contracts. One development with a long-term power deal is Project Gemini, in which Northland holds a 60% stake (purchased in May 2014). Project Gemini is a 600-megawatt (360 megawatts net to Northland) wind farm in the North Sea, off the coast of the Netherlands. If you include an 80-million-euro loan Northland provided, this investment is worth $557 million (Canadian). Gemini has a 15-year deal to sell its power to the government of the Netherlands, which cuts this investment’s risk. The project should…