Northland Power’s board chair defends surprise dividend cut that sent shares tumbling 30 per cent

Solar panels located in Prince Edward County, Ontario, owned and operated by Northland Power Inc.

The chair of Northland Power Inc.’s NPI-T board of directors defended the company’s surprise dividend in front of institutional investors and analysts Thursday, stressing the move provides much-needed financial flexibility.

Ian Pearce, a former executive at miners Falconbridge Ltd. and Xstrata Plc. and now Northland’s board chair, spoke at the company’s investor day Thursday, telling the crowd that the 40 per cent dividend cut “was made with careful consideration of all shareholders’ interests.”

“The revised dividend level reflects the realities of the industry cycle and supports a more sustainable financial framework,” he said. “Moving toward a self-funded growth model is intended to red