RCS - Polaris Renewable - Polaris Renewable Energy Announces Q3 2024 Results

Banco Santander SAAnnouncement

31/10/2024 13:00

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RNS Number : 3852K  Polaris Renewable Energy Inc  31 October 2024

Polaris Renewable Energy Announces Q3 2024 Results

 

TORONTO, ON / ACCESSWIRE / October 31, 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 and six months ended
September 30, 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/3wkq) and have been posted on
SEDAR+ at www.sedarplus.ca. (https://pr.report/3wkr) The dollar figures below
are denominated in US Dollars unless noted otherwise.

HIGHLIGHTS

·      Consolidated energy production of 168,639 MWh in the third
quarter compared to 178,877 MWh in the third quarter of last year.

·      The Company generated $17.7 million in revenue from energy sales
for the quarter ended September 30, 2024, compared to $18.8 million in the
same period in 2023. Lower revenue resulted from, principally, lower
production in the Company's geothermal facility in Nicaragua.

·      Adjusted EBITDA was $12.4 million for the three-month period
ended September 30, 2024, compared to Adjusted EBITDA of $13.7 million in the
same period in 2023 as a result of the revenue decrease, as explained above.

·      Net earnings attributable to shareholders of the Company in the
second quarter of 2024 were $451 or $0.02 per share - basic, compared to net
earnings attributable to shareholders of the Company of $1,018 or $0.05 per
share - basic in the comparative quarter of 2023.

·      Consolidated Direct Costs and General and Administrative expenses
remained flat during the nine months ended September 30, 2024, when compared
to the same period in 2023, despite the inclusion of a full quarter of
operating costs for Vista Hermosa Solar Park in Panama (which was under
construction until April 2023).

·      The reduction in production year over year was a combination of
lower hydrology in Peru compared with the same period last year as well as
expected declines and lower Binary unit output in Nicaragua. While production
in Nicaragua was down year over year, it was sequentially higher than fourth
quarter 2023 and first quarter 2024.

·      The Company concluded its phase 1 optimization project in the
Dominican Republic, consisting of replacing 50% of its photovoltaic ("PV")
panels at the solar plant Canoa 1. The replaced panels are expected to boost
productivity of the plant by at least 15%.

·      For the nine-month period ended September 30, 2024, the Company
generated $26.0 million in net cash flow from operating activities, ending
with a cash position of $46.4 million, including restricted cash.

·      Subsequent to quarter end, on October 29, 2024, the Company
announced it had signed an Equity Capital Contribution Agreement ("ECCA") with
respect to Punta Lima Wind Farm LLC ("PLWF" or the "Project"), a wholly owned
subsidiary of Santander Bank N.A. ("Santander"). The Project operates an
onshore wind farm with a nameplate capacity of 26.0 MW's located in the
Municipality of Naguabo, Puerto Rico. The transaction is being completed using
a tax-equity structure which will result in Polaris, through a wholly owned
subsidiary, operating the Project and Santander retaining a tax equity
interest in the Project. The agreed upon equity

contribution is $20 Million. The transaction is subject to customary closing
conditions, including the approval of the acquisition by local regulatory
bodies. The transaction is expected to close in the first quarter of 2025.

OPERATING AND FINANCIAL OVERVIEW

                                                                    Three Months Ended                                      Nine MonthsEnded
                                                                    September 30,                 September 30,             September 30,                     September 30,

                                                                    2024                          2023                      2024                              2023
 Energy production
 Consolidated Power MWh                                                      168,639                       178,753                      568,959                           608,131

 Financials
 Total revenue                                                      $        17,658               $        18,842           $           56,992                $           59,774
 Net earnings attributable to owners                                $        451                  $        1,018            $           5,782                 $           10,336
 Adjusted EBITDA                                                    $        12,417               $        13,734           $           41,477                $           44,445
 Netcash flow from operating activities                             $        8,991                $        13,451           $           25,975                $           33,793

 Per share
 Net earnings attributable to owners - basic and diluted            $        0.02                 $        0.05             $           0.27                  $           0.49
 Adjusted EBITDA - basic                                            $        0.59                 $        0.65             $           1.97                  $           2.11

 Balance Sheet                                                                                                              As at September 30,               As at December 31,

                                                                                                                            2024                              2023
 Total cash and cash equivalents (Restricted and Unrestricted)                                                              $           46,363                $           44,683
 Total current assets                                                                                                       $           57,605                $           54,042
 Total assets                                                                                                               $           505,204               $           519,400
 Current and Long-term debt                                                                                                 $           163,316               $           172,379
 Total liabilities                                                                                                          $           238,727               $           249,468

During the three months ended September 30, 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 and a below
normal dry season in Peru.

Production in Nicaragua was lower year over year as a result of typical
declines in steam production as well as lower production from the Binary unit.
The Company made the decision to lower the throughput of the Binary unit in
order to maintain declines from the steam field in our targeted range. It is
important to note that the current quarter still represents the highest
production from the San Jacinto plant in the last four quarters.

Consolidated production in Peru for the three months ended September 30, 2024,
was 11% lower than the comparative period in 2023 due to less resource
availability.

The Canoa 1 facility in the Dominican Republic increased generation by 9% to
16,476 MWh in the three months ended September 30, 2024, versus the three
months ended September 30, 2023. This increase reflects the enhanced
productivity of the new solar panels for the which the company finalized
installation at the end of Q3 2024.

For Ecuador, in the third quarter of 2024, HSJM's expected production of 6,535
MWh was in line with the production of the comparative period in 2023.

Similarly, Vista Hermosa Solar Park in Panama, connected to the electrical
grid in April 2023, produced 4,447 MWh, which was in line with Company's
expectations for the three months ended September 30, 2024.

" I am pleased with the EBITDA and cash flow generation in the current quarter
despite that fact that it is always a seasonally weak quarter for us due to
seasonality in Peru, which was even lower than normal. This has also been made
possible through continued cost control measures and decreased G&A
expenses - worth highlighting in the current economic environment. In
addition, I am very excited about the recent acquisition announcement with
respect to Punta Lima. It rounds out our generation mix, accelerates our
diversification strategy and increases our ability to grow organically", said
Marc Murnaghan, Chief Executive Officer of Polaris Renewable Energy.

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

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/3wks) and on the Company's website at
www.PolarisREI.com. (https://pr.report/3wkt)

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 period ended September 30, 2024 and on the
Company's website www.polarisREI.com/Non-GAAP (https://pr.report/3wku) .
(https://pr.report/3wku)

SOURCE: Polaris Renewable Energy Inc.

 

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