RCS - Polaris Renewable - Polaris Renewable Energy Announces Q3 2023 Results

Polaris Renewable EnergyAnnouncement

02/11/2023 13:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231102:nRSB2202Sa&default-theme=true

RNS Number : 2202S  Polaris Renewable Energy Inc  02 November 2023

Polaris Renewable Energy Announces Q3 2023 Results

TORONTO, ON / ACCESSWIRE / November 2, 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 nine months ended
September 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 and have been posted on SEDAR+ at
www.sedarplus.ca. The dollar figures below are denominated in US Dollars
unless noted otherwise.

HIGHLIGHTS

·      Consolidated energy production increased by 33% to 178,753 MWh
for the quarter ended September 30, 2023 from 134,652 MWh in the same quarter
of 2022. The increase resulted from higher production of 129,475 MWh
contributed by the Company's geothermal facility in Nicaragua ("San Jacinto")
and an aggregate of 23,078 MWh contributed by the Company's hydroelectric
facilities in Peru. Furthermore, the Company's facilities acquired in 2022
contributed an additional 14,596 MWh in Dominican Republic ("Canoa 1"), and
6,902 MWh in Ecuador ("San Jose de Minas" or "HSJM"); while the recently
constructed facilities in Panama ("Vista Hermosa Solar Park I & II"),
contributed 4,702 MWh during this quarter.

·      The Company generated $18.8 million in revenue for the three
months ended September 30, 2023, compared to $14.5 million in the same period
in 2022. The 30% 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 $1.0 million or $0.05 per
share - basic for the three months ended September 30, 2023, compared to a net
loss of $1.49 million or $(0.07) per share - basic in 2022.

·      Adjusted EBITDA was $13.7 million for the three months ended
September 30, 2023, compared to adjusted EBITDA of $10.0 million in the same
period in 2022, principally as a result of revenue increases, as described
above.

·      For the three months ended September 30, 2023, the Company
generated $13.5 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 three months ended September 30, 2023, the Company has declared and
will pay a quarterly dividend of $0.15 per outstanding common share on
November 24, 2023.

·      The Company concluded several optimization projects at its
operating plants including a battery project in Peru, and well enhancements in
Nicaragua.

·      On August 21, 2023 the Company announced that the Toronto Stock
Exchange accepted its notice of intention to proceed with a normal course
issuer bid ("NCIB"), under which Polaris may purchase up to 2,048,273 of its
common shares, providing the Company with flexibility to manage its capital
position.

·      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                                               Nine Months Ended
                                                                   September 30, 2023                  September 30, 2022           September 30, 2023                      September 30, 2022
 Energy production
 Consolidated Power MWh                                                        178,753                             134,652                         608,131                              475,536

 Financials
 Total revenue                                                     $           18,842                  $           14,512           $              59,774                   $           45,762
 Net earnings (loss) attributable to owners                        $           1,018                   $           (1,491      )    $              10,336                   $           (502        )
 Adjusted EBITDA                                                   $           13,734                  $           10,010           $              44,445                   $           33,265
 Net cash flow from operating activities                           $           13,451                  $           (1,101      )    $              33,793                   $           20,660

 Per share
 Net earnings (loss) attributable to owners - basic and diluted    $           0.05                    $           (0.07       )    $              0.49                     $           (0.03       )
 Adjusted EBITDA - basic                                           $           0.65                    $           0.49             $              2.11                     $           1.68

 Balance Sheet                                                                                                                      As at September 30, 2023                As at

December 31, 2022
 Total Cash (Restricted and Unrestricted)                                                                                           $              45,641                   $           39,965
 Total current assets                                                                                                               $              56,952                   $           50,609
 Total assets                                                                                                                       $              525,807                  $           535,102
 Current and Long-term debt                                                                                                         $              175,876                  $           184,408
 Total liabilities                                                                                                                  $              254,352                  $           264,890

During the three months ended September 30, 2023, quarterly consolidated power
production was 30% higher than consolidated power production for the three
months ended September 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 September
30, 2023 is a combination of the additional production from the Binary Unit
(as defined below) which started operating December 31, 2022, and
additionally, the lower than average production in July 2022, as a result of
the planned major maintenance at the plant.

Consolidated production in Peru for the three months ended September 30, 2023
was higher than the comparative period in 2022 due to somewhat better
hydrology coupled with less down time and lower frequency of technical issues.

For Dominican Republic, the Canoa 1 facility, acquired on June 28, 2022,
produced 14,596 MWh in the three months ended September 30, 2023. This is
marginally higher than the results for the same period in 2022, mainly due to
better irradiance.

For Ecuador, the HSJM facility, acquired on September 7, 2022, produced 6,902
MWh in the three months ended September 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 4,702 MWh in the three
months ended September 30, 2023. Vista Hermosa began operations on April 22,
2023, with this being the first full quarter of production reported, in line
with budget and management expectations.

"The Company remains on track with respect to expected operating results year
to date and in the current quarter. As expected, the dry season impacted
overall production in Peru and we had two small wells offline in Nicaragua as
a result of the optimization project. Such items were somewhat offset by
stronger spot prices in Panama. We are also quite happy with the fact that
operating costs in all jurisdictions remain flat despite the inflation
pressures world-wide", 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 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 (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.sedaplus.ca and on the
Company's website at www.PolarisREI.com.

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 September 30, 2023 and
in the Company's website www.polarisREI.com/Non-GAAP
(https://pr.report/E3FSxadr) .

SOURCE: Polaris Renewable Energy Inc.

 

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NRADZMGMMZFGFZM