RCS - Polaris Renewable - Polaris Renewable Energy Announces Q2 2023 Results

Polaris Renewable EnergyAnnouncement

03/08/2023 14:15

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RNS Number : 2514I  Polaris Renewable Energy Inc  03 August 2023

Polaris Renewable Energy Announces Q2 2023 Results

TORONTO, ON / ACCESSWIRE / August 3, 2023 / Polaris Renewable Energy Inc.
(TSX:PIF) ("Polaris Renewable Energy" or the "Company"), is pleased to report
its financial and operating results for the three and six months ended June
30, 2023. 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/RAbNeZLg)  and have been posted on
SEDAR at www.sedar.com (https://pr.report/xGAwklH7) . The dollar figures
below are denominated in US Dollars unless noted otherwise.

HIGHLIGHTS

·      Consolidated energy production increased by 30% to 211,765 MWh
for the quarter ended June 30, 2023 from 163,119 MWh in the same quarter of
2022. The increase resulted from higher production of 131,529 MWh contributed
by the Company's geothermal facility in Nicaragua ("San Jacinto") and an
aggregate of 51,986 MWh contributed by the Company's hydroelectric facilities
in Peru. Furthermore, the Company's facilities acquired in 2022 contributed an
additional 13,398 MWh in Dominican Republic ("Canoa 1"), and 11,323 MWh in
Ecuador ("San Jose de Minas" or "HSJM"); while the facility in Panama ("Vista
Hermosa Solar Park"), which began operations in April 2023, contributed 3,529
MWh during the second quarter.

·      The Company generated $20.8 million in revenue for the three
months ended June 30, 2023, compared to $15.2 million in the same period in
2022. The 37% increase was due to additional energy revenue sales from the
increase in production mentioned above coupled with the increased prices due
to inflation adjustments in the power purchase agreement's ("PPA") from our
Peruvian facilities.

·      Net earnings attributable to owners was $4.6 million or $0.22 per
share - basic for the three months ended June 30, 2023, compared to a net loss
of $1.54 million or $(0.08) per share - basic in 2022.

·      Adjusted EBITDA was $15.4 million for the three months ended June
30, 2023, compared to adjusted EBITDA of $11.2 million in the same period in
2022, principally as a result of revenue increases, as described above.

·      For the three months ended June 30, 2023, the Company generated
$10.3 million in net cash flow from operating activities, ending with a cash
position of $41.9 million, including restricted cash.

·      The Company remains focused on maintaining a quarterly dividend.
For the three months ended June 30, 2023, the Company has declared and will
pay a quarterly dividend of $0.15 per outstanding common share on August 25,
2023.

·      The Company advanced numerous optimization projects at its
operating plants including a battery project in Peru, an expansion project in
Ecuador and well enhancements in Nicaragua.

·      On May 24, 2023 the Company announced that it had signed a PPA in
the Dominican Republic, for Canoa II, the solar project adjacent to the
already operational Canoa I solar plant.

·      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. 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                                  Six Months Ended
                                                                    June 30, 2023                 June 30, 2022         June 30, 2023               June 30, 2022
 Energy production
 Consolidated Power MWh                                                      211,765                       163,119               429,378                     340,884

 Financials
 Total revenue                                                      $        20,817               $        15,184       $        40,932             $        31,250
 Net earnings (loss) attributable to owners                         $        4,622                $        (1,542)      $        9,318              $        989
 Adjusted EBITDA                                                    $        15,386               $        11,188       $        30,711             $        23,285
 Net cash flow from operating activities                            $        10,254               $        14,191       $        20,342             $        21,761

 Per share
 Net earnings (loss) attributable to owners - basic and diluted     $        0.22                 $        (0.08)       $        0.44               $        0.05
 Adjusted EBITDA - basic                                            $        0.73                 $        0.57         $        1.46               $        1.19

 Balance Sheet                               As at June 30, 2023         As at December 31, 2022
 Total Cash (Restricted and Unrestricted)    $           41,904          $             39,965
 Total current assets                        $           54,350          $             50,609
 Total assets                                $           530,083         $             535,102
 Current and Long-term debt                  $           178,353         $             184,408
 Total liabilities                           $           256,566         $             264,890

During the three months ended June 30, 2023, quarterly consolidated power
production was 30% higher than consolidated power production for the three
months ended June 30, 2022 due to higher production from our existing
facilities in Nicaragua and Peru, coupled with additional production from the
facilities in Dominican Republic and Ecuador, acquired in 2022, and Vista
Hermosa Solar Park which began operations in April 2023.

For Nicaragua, the increase in production for the three months ended June 30,
2023 is the net result of additional production from the Binary Unit, partly
offset by expected declines in production from the steamfield.

Consolidated production in Peru for the three months ended June 30, 2023 was
marginally higher than the comparative period in 2022 due to somewhat better
hydrology across Peru for the quarter.

For Dominican Republic, the Canoa 1 facility, acquired on June 28, 2022,
produced 13,398 MWh in the three months ended June 30, 2023. This is
approximately 1,000 MWh below expectations as a result of higher than expected
downtime at the plant due to issues with one of the inverters.

For Ecuador, the HSJM facility, acquired on September 7, 2022, produced 11,323
MWh in the three months ended June 30, 2023. This is in line with production
from historical results and management expectations. Overall, and similar to
Peru, production in Ecuador is driven by the dry and wet season, with the
rainy season generally starting in November and running until May-June.

For Panama, the Vista Hermosa Solar Park produced 3,529 MWh in the three
months ended June 30, 2023. Vista Hermosa began operations on April 22, 2023,
with this being the first quarter of production reported, in line with our
budget and management expectations.

"The second quarter results build on the results of the first quarter with
continued contribution from the recently constructed Binary unit in Nicaragua
as well as the acquisitions in the Dominican Republic and Ecuador. In
addition, we are very excited to have the newly constructed solar plant in
Panama online and producing. This brings us to seven operational plants in
five jurisditions." noted Marc Murnaghan, Chief Executive Officer of Polaris
Renewable Energy.

About Polaris Renewable Energy Inc.

Polaris Renewable Energy Inc. (formerly, Polaris Infrastructure Inc.) is a
Canadian publicly traded company engaged in the acquisition, development, and
operation of renewable energy projects in the Americas. 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 (~72 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 for the
year ended December 31, 2022, its annual and interim financial statements and
related MD&A is available on SEDAR at www.sedar.com and on the Company's
website at www.PolarisREI.com (https://pr.report/vDP1XF9Q) .

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 three and six months ended June 30, 2023 and in the
Company's website www.polarisREI.com/Non-GAAP (https://pr.report/RJ90k6wI) .

SOURCE: Polaris Renewable Energy Inc.

 

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