Polaris Renewable Energy Inc. (“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 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 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
• 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.
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.
