RCS - Polaris Renewable - Polaris Renewable Energy Announces Q1 2024 Results

Polaris Renewable EnergyAnnouncement

02/05/2024 14:00

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RNS Number : 9639M  Polaris Renewable Energy Inc  02 May 2024

Polaris Renewable Energy Announces Q1 2024 Results

TORONTO, ON / ACCESSWIRE / May 2, 2024 / Polaris Renewable Energy Inc.
(TSX:PIF) ("Polaris Renewable Energy" or the "Company"), is pleased to report
its financial and operating results for the three months ended March 31, 2024.
This earnings release should be read in conjunction with the Company's
condensed consolidated interim financial statements and management's
discussion and analysis, which are available on the Company's website at
www.PolarisREI.com (https://pr.report/hJ8LsTEO) and have been posted on SEDAR+
at www.sedarplus.ca (https://pr.report/3yUgDsjE) . The dollar figures below
are denominated in US Dollars unless noted otherwise.

HIGHLIGHTS

·      Consolidated energy production decreased by 2% to 213,434 MWh for
the period ended March 31, 2024 when compared to the period ended March 31,
2023. This was mainly driven by lower production by the Company's geothermal
facility in Nicaragua, combined lower production of the hydroelectric
facilities in Peru. The decrease was partly offset by the production of the
solar plant in Panama, which started operations in April 2023 and did not
contribute to energy production during the comparative quarter of 2023.

·      The Company generated $20.6 million in revenue from energy sales
for the period ended March 31, 2024, compared to $20.1 million in the same
period in 2023. The comparative revenue increase, despite lower production, is
the result of increased prices with respect to the inflation adjustments in
the power purchase agreement's ("PPA") for the Peruvian facilities, coupled
with the high spot prices received in the Panamanian spot market.

·      Despite current inflationary pressures, Direct Costs remained
flat during the first quarter of 2024, when compared to the same period in
2023 and while considering the addition of Operating Costs from the Vista
Hermosa Solar Park in Panama.

·      Net earnings attributable to owners was $4.3 million or $0.21 per
share - basic for the period ended March 31, 2024, compared to net earnings of
$4.7 million or $0.22 per share - basic in 2023.

·      Adjusted EBITDA was $15.7 million for the quarter ended March 31,
2024, compared to Adjusted EBITDA of $15.3 million in the same period in 2023,
principally as a result of revenue increases, as described above.

·      For the period ended March 31, 2024, the Company generated $8.9
million in net cash flow from operating activities, ending with a cash
position of $45.6 million, including restricted cash.

·      The Company remains focused on maintaining a quarterly dividend.
For the period ended March 31, 2024, the Company has declared and will pay a
quarterly dividend of $0.15 per outstanding common share on May 24, 2024.

·      The Company continued to advance its environmental, social and
governance initiatives as part of its core strategy while continuing to
maintain an excellent health and safety record. For additional details,
readers are encouraged to refer to the Company's annual sustainability report,
which is available on the Company's website.

OPERATING AND FINANCIAL OVERVIEW

                                                                  Three Months Ended
                                                                  March 31, 2024                        March 31, 2023
 Energy production
 Consolidated Power MWh                                                        213,434                              217,613

 Financials
 Total revenue                                                    $            20,632                   $           20,115
 Net earnings attributable to owners                              $            4,346                    $           4,696
 Adjusted EBITDA                                                  $            15,741                   $           15,325
 Net cash flow from operating activities                          $            8,687                    $           10,088

 Per share
 Net earnings attributable to owners - basic and diluted          $            0.21                     $           0.22
 Adjusted EBITDA - basic                                          $            0.75                     $           0.73

 Balance Sheet                                                    As at March 31, 2024                  As at

December 31, 2023
 Total cash and cash equivalents (Restricted and Unrestricted)    $            45,643                   $           44,683
 Total current assets                                             $            55,574                   $           54,042
 Total assets                                                     $            515,227                  $           519,400
 Current and Long-term debt                                       $            169,934                  $           172,379
 Total liabilities                                                $            243,970                  $           249,468

During the three months ended March 31, 2024 quarterly consolidated power
production was lower than the same period in 2023. This was mainly driven by a
decrease in production from the geothermal facility in Nicaragua due to higher
instability in cycling wells, which was caused by the stabilization period of
the Binary Unit's brine re-injection scheme. The instability also negatively
impacted the generation from the Binary Unit, which received less brine
generated from cycling wells.

Consolidated production in Peru for the three months ended March 31, 2024 was
lower than the comparative period in 2023 due to a temporary shutdown of
Canchayllo hydroelectric production since March 10, 2024. A minor landslide
resulted in rocks and mud blocking the intake tunnel and impacting one of the
chamber walls. Although no injuries or significant damage to equipment
occurred, the clean-up work performed was extensive and had to be concluded
before the repairs and other maintenance could be executed. Production resumed
on April 30, 2024.

The Canoa 1 facility in the Dominican Republic produced 14,530 MWh in the
three months ended March 31, 2024. This is 5% lower than the first quarter of
2023 due to lower irradiance in the first quarter of 2024.

In the first quarter of 2024, Ecuador's HSJM average production of 10,223 MWh
was comparable to the production of the same period in 2023.

The Vista Hermosa Solar Park in Panama was connected to the electrical grid in
April 2023, upon construction completion in March 2023. For the three months
ended March 31, 2024, the solar facility produced 6,130 MWh, which was above
the Company's expectations for the period.

"I am pleased that we have started the year with a strong quarter in line with
our expectations on a consolidated basis," said Marc Murnaghan, Chief
Executive Officer of Polaris Renewable Energy, "(...) continued cost control
is also worth highlighting in this macro-economic environment."

About Polaris Renewable Energy Inc.

Polaris Renewable Energy Inc. is a Canadian publicly traded company engaged in
the acquisition, development, and operation of renewable energy projects in
Latin America. We are a high-performing and financially sound contributor in
the energy transition.

The Company's operations are in 5 Latin American countries and include a
geothermal plant (82 MW), 4 run-of-river hydroelectric plants (39 MW) and 3
solar (photovoltaic) projects in operation (35 MW).

For more information, contact:

Investor Relations

Polaris Renewable Energy Inc.

Phone: +1 647-245-7199

Email: info@PolarisREI.com (mailto: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 Panama, production in the fourth quarter in Nicaragua
and synergies of the acquisitions discussed above, and the effects of the
COVID-19 pandemic. In addition, statements relating to estimates of
recoverable energy "resources" or energy generation capacities are
forward-looking information, as they involve implied assessment, based on
certain estimates and assumptions, that electricity can be profitably
generated from the described resources in the future. Such forward-looking
information reflects management's current beliefs and is based on information
currently available to management. Often, but not always, forward-looking
statements can be identified by the use of words such as "plans", "expects",
"is expected", "budget", "estimates", "goals", "intends", "targets", "aims",
"likely", "typically", "potential", "probable", "projects", "continue",
"strategy", "proposed", or "believes" or variations (including negative
variations) of such words and phrases or may be identified by statements to
the effect that certain actions, events or results "may", "could", "should",
"would", "might" or "will" be taken, occur or be achieved.

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 Nicaragua, Peru,
Panama, Ecuador and Dominican Republic to sell power to neighbouring
countries; economic insecurity in Nicaragua, Peru, Panama, Ecuador and
Dominican Republic; and other development and operating risks, as well as
those factors discussed in the section entitled "Risks and Uncertainties" in
the Company's annual and interim MD&A, copies of which are available on
SEDAR. There may be other factors that cause actions, events or results not to
be as anticipated, estimated or intended. These factors are not intended to
represent a complete list of the risk factors that could affect us. These
factors should be carefully considered, and readers of this press release
should not place undue reliance on forward-looking information.

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 and
sustainability report for the year ended December 31, 2023, its annual and
interim financial statements and related MD&A is available on SEDAR+ at
www.sedarplus.ca (https://pr.report/raJENmTw) and on the Company's website at
www.PolarisREI.com (https://pr.report/SvKtdei0) .

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 Polaris Renewable
Energy's results since the Company believes that the presentation of these
measures will enhance an investor's understanding of Polaris Renewable
Energy's operating performance. Management's determination of the components
of non-GAAP performance measures are evaluated on a periodic basis in
accordance with its policy and are influenced by new transactions and
circumstances, a review of stakeholder uses and new applicable regulations.
When applicable, changes to the measures are noted and retrospectively
applied.

Descriptions and reconciliations of the above noted non-GAAP performance
measures are included in Section 13: Non-GAAP Performance Measures in the
Company's MD&A for the year ended March 31, 2024 and on the Company's
website www.polarisREI.com/Non-GAAP (https://pr.report/yKLVwbNt) .

SOURCE: Polaris Renewable Energy Inc.

 

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