Polaris Renewable Energy announces Q1 2023 results

Polaris Renewable Energy release

TORONTO, ON (May 4, 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 months ended March 31, 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.sedar.com. The dollar figures below are denominated in US Dollars unless noted otherwise.

HIGHLIGHTS

• Consolidated energy production was 217,613 MWh (net) for the quarter ended March 31, 2023, of which 125,930 MWh (net) was contributed by the Company’s geothermal facility in Nicaragua ("San Jacinto") and an aggregate of 66,334 MWh (net) was contributed by the Company’s hydroelectric facilities in Peru. A total of 15,235 MWh (net) was contributed by the Company’s solar facility in Dominican Republic ("Canoa 1"), and 10,114 MWh (net) was contributed by the Company’s hydroelectric facility in Ecuador ("San Jose de Minas or HSJM").

• The Company generated $20.1 million in revenue for the three months ended March 31, 2023, compared to $16.1 million in the same period in 2022. The increase was the net result of additional energy revenue sales from the Binary Unit located in Nicaragua, the two new facilities located in Dominican Republic and Ecuador, acquired during 2022, and from our Peruvian facilities, which had increased production, coupled with the increased prices due to inflation adjustments in the power purchase agreement’s (“PPA”).

• Net earnings attributable to owners was $4.7 million or $0.22 per share – basic for the quarter ended March 31, 2023, compared to net earnings of $2.5 million or $0.13 per share – basic in 2022.

• Adjusted EBITDA was $15.3 million for the three months ended March 31, 2023, compared to Adjusted EBITDA of $12.1 million in the same period in 2022, principally as a result of revenue increases, as described above.

• For the quarter ended March 31, 2023, the Company generated $10.1 million in net cash flow from operating activities, ending with a cash position of $40.6 million, including restricted cash.

• On March 15, 2023, the Company signed an agreement with Export Development Canada ("EDC") for a $10.0 million floating rate term loan facility, with the purpose of providing capital to fund early-stage development expenses required to take projects to the point of being construction ready.

• On March 31, 2023, the Company completed the construction of Vista Hermosa Solar Park, located in Panama. The plant was connected to the electrical grid on April 22, 2023.

• In April 2023, the Company began the construction of the Perlabi project, which consists of a conduction channel from the adjacent Perlabi river that will increase the load factor of the existing power plant in San Jose de Minas, Ecuador. The budget for the Perlabi project is approximately $3.4 million and construction is expected to be completed in the second quarter of 2024.

• The Company remains focused on maintaining a quarterly dividend. For the quarter ended March 31, 2023, the Company has declared and will pay the quarterly dividend of $0.15 per outstanding common share on May 26, 2023.

• 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.

The full earnings statement is available here and the MD&A at this link.