Polaris Renewable Energy Announces Q3 2022 Results
HIGHLIGHTS
- Quarterly consolidated energy production of 134,652 MWh (net) for the period ended
September 30, 2022 , of which 98,949 MWh (net) was contributed by the Company's geothermal facility inNicaragua , an aggregate of 18,992 MWh (net) was contributed by the Company's hydroelectric facilities inPeru , 14,262 MWh (net) was contributed by the Company's solar facility inDominican Republic and 2,449 MWh (net) was contributed by the Company's hydroelectric facility inEcuador . -
The Company generated
$14.5 million in revenue, including$14.1 million from energy sales and$0.4 million from the sale of carbon emission reduction ("CER") credits for the three months endedSeptember 30, 2022 , compared to$14.8 million in energy sales in the same period in 2021. -
Net loss attributable to owners was
$1.5 million or$0.07 per share - basic for the three months endedSeptember 30, 2022 , compared to net earnings of$2.2 million or$0.11 per share - basic for the same period in 2021. -
Adjusted EBITDA was
$10.0 million for the period endedSeptember 30, 2022 , compared to$10.9 million in the same period in 2021. -
For the nine month period ended
September 30, 2022 , the Company generated$20.7 million in net cash flow from operating activities, ending with a strong cash position of$41.64 million (1) . -
Continued progress on the construction of the Binary power plant at San Jacinto, which is on schedule for completion in the fourth quarter of 2022. An additional
$3.3 million was spent in the third quarter, bringing the total investment to date to$22.9 million . -
Development of the Panama Solar projects, acquired in
March 2022 , continues as planned. During the third quarter of 2022 the Company spent$3.5 million in additions to construction in progress and an additional$4.2 million set aside as guarantees to ensure delivery of the solar panels toPanama . Construction of the solar plant began inMarch 2022 and is expected to be completed inDecember 2022 . -
On
September 7, 2022 , the Company closed the acquisition of 83.16% of the issued and outstanding shares of Hidroeléctrica San Jose de Minas ("HSJM"), a run-of-the-river hydro project with approximately 6.0 MWs capacity, inEcuador , for$16.3 million . The Project has 7 years remaining on a 15-year power purchase agreement ("PPA") with a wholly owned Ecuadorian government entity, for the sale of all power production at$78.10 per MWh. The effective date of the transaction wasAugust 31, 2022 . -
On
September 20, 2022 , the Company completed the redemption of its unsecured convertible debentures, equivalent to$15.3 million , of which$15.0 million were converted into common shares prior to the redemption date resulting in the issuance of an aggregate of 1,294,799 common shares, and$0.3 million were redeemed in cash. -
The Company remains focused on maintaining a quarterly dividend. For the three months ended
September 30, 2022 , the Company declared and paid$3.1 million in dividends. The Company has declared the twenty-seventh consecutive quarterly dividend of$0.15 per outstanding common share, which will be paid onNovember 25th, 2022 . - The Company continued to advance its environmental, social and governance ("ESG") initiatives as part of its core strategy while continuing to maintain an excellent health and safety record. Readers are encouraged to refer to the Company's ESG annual report, which is available on the Company's website for additional details.
The Company does not conduct business with or within
(1) Includes current and non-current restricted cash.
OPERATING AND FINANCIAL OVERVIEW
Three Months Ended | Nine Months Ended | |||||||||||||||
Energy production | ||||||||||||||||
134,652 | 149,320 | 475,536 | 480,981 | |||||||||||||
Financials | ||||||||||||||||
Total revenue | $ | 14,512 | $ | 14,806 | $ | 45,762 | $ | 44,646 | ||||||||
Net (loss) earnings attributable to owners | $ | (1,491 | ) | $ | 2,175 | $ | (502 | ) | $ | 1,422 | ||||||
Adjusted EBITDA | $ | 10,010 | $ | 10,857 | $ | 33,265 | $ | 32,699 | ||||||||
Net cash flow from operating activities | $ | 20,660 | $ | 33,903 | ||||||||||||
Per share | ||||||||||||||||
Net (loss) earnings attributable to owners - basic | $ | (0.07 | ) | $ | 0.11 | $ | (0.03 | ) | $ | 0.08 | ||||||
Adjusted EBITDA - basic | $ | 0.49 | $ | 0.56 | $ | 1.68 | $ | 1.76 | ||||||||
Balance Sheet | As at | As at | ||||||||||||||
Cash | $ | 36,848 | $ | 97,930 | ||||||||||||
Restricted cash - non-current | $ | 4,790 | $ | 3,835 | ||||||||||||
Total current assets | $ | 53,032 | $ | 110,143 | ||||||||||||
Total assets | $ | 536,035 | $ | 502,700 | ||||||||||||
Current and Long-term debt (ii) | $ | 186,167 | $ | 169,686 | ||||||||||||
Total liabilities | $ | 266,402 | $ | 241,876 |
- Net of transaction costs.
During the three months ended
For
Consolidated production in
For
For
"We are pleased with the third quarter results as we generated strong free cash flow and consolidated recent acquisitions in the numbers. In addition, sales of carbon credits offset expected seasonal weakness in the quarter due to maintenance in
About
The Company's operations are in 5 Latin American countries and include a geothermal plant (~72 MW), 4 run-of-river hydroelectric plants (39 MW), 1 solar (photovoltaic) project in operation (25 MWac) and 2 solar projects with an expected total capacity of approximately 10 MWac, currently under construction.
For more information, contact :
Investor Relations
Phone: +1 647-245-7199Email:
info@PolarisREI.com
Cautionary Statements
This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws, which may include, but is not limited to, financial and other projections as well as statements with respect to future events or future performance, management's expectations regarding the Company's growth, results of operations, business prospects and opportunities, construction plans in
A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others: failure to discover and establish economically recoverable and sustainable resources through exploration and development programs; imprecise estimation of probability simulations prepared to predict prospective resources or energy generation capacities; inability to complete hydro projects in the required time to meet COD; variations in project parameters and production rates; defects and adverse claims in the title to the Company's properties; failure to obtain or maintain necessary licenses, permits and approvals from government authorities; the impact of changes in foreign currency exchange and interest rates; changes in government regulations and policies, including laws governing development, production, taxes, labour standards and occupational health, safety, toxic substances, resource exploitation and other matters; availability of government initiatives to support renewable energy generation; increase in industry competition; fluctuations in the market price of energy; impact of significant capital cost increases; the ability to file adjustments in respect of applicable power purchase agreements; unexpected or challenging geological conditions; changes to regulatory requirements, both regionally and internationally, governing development, geothermal or hydroelectric resources, production, exports, taxes, labour standards, occupational health, waste disposal, toxic substances, land use, environmental protection, project safety and other matters; economic, social and political risks arising from potential inability of end-users to support the Company's properties; insufficient insurance coverage; inability to obtain equity or debt financing; fluctuations in the market price of Shares; inability to retain key personnel; the risk of volatility in global financial conditions, as well as a significant decline in general economic conditions; uncertainty of political stability in countries in which the Company operates; uncertainty of the ability of
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is provided as at the date hereof and the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by applicable laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information due to the inherent uncertainty therein.
Additional information about the Company, including the Company's AIF for the year ended
Non-GAAP Performance Measures
Certain measures in this press release do not have any standardized meaning as prescribed by IFRS and, therefore, are not considered GAAP measures. Where non-GAAP measures or terms are used, definitions are provided. In this document and in the Company's consolidated financial statements, unless otherwise noted, all financial data is prepared in accordance with IFRS.
This news release includes references to the Company's adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA") and adjusted EBITDA per share, which are non-GAAP measures. These measures should not be considered in isolation or as an alternative to net earnings (loss) attributable to the owners of the Company or other measures of financial performance calculated in accordance with IFRS. Rather, these measures are provided to complement IFRS measures in the analysis of
Descriptions and reconciliations of the above noted non-GAAP performance measures are included in Section 11: Non-GAAP Performance Measures in the Company's MD&A for the three months ended
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