Polaris Renewable Energy (PIF) Q2 2024 earnings summary

Executive summary

• Q2 2024 power production was 186,887 MWh, down from 209,982 MWh in Q2 2023, mainly due to scheduled maintenance in Nicaragua and lower hydrology in Peru.

• Revenue for Q2 2024 was $18.7 million, a decrease from $20.8 million year-over-year, reflecting lower production.

• Net earnings attributable to owners/shareholders fell to $985,000 ($0.05 per share) from $4.6 million ($0.22 per share) in Q2 2023.

• Adjusted EBITDA for Q2 2024 was $13.3 million, down from $15.7 million in Q2 2023.

• Quarterly dividend of $0.15 per share announced, payable August 23, 2024.

Financial highlights

• Net cash from operating activities declined due to lower receipts from Nicaragua and unearned revenue in Peru; six-month net cash flow from operations was $17.0 million.

• Net cash used in investing activities was significantly lower year-over-year, reflecting completion of major projects in 2023.

• Net cash used in financing activities remained comparable year-over-year.

• Cash position was $45.2 million as of June 30, 2024; total assets $509.1 million, liabilities $239.9 million, and debt $165.9 million.

Outlook and guidance

• Panel replacement at Canoa One (Dominican Republic) is on schedule, with full benefits expected in upcoming quarters.

• Environmental permit for battery storage at Canoa received; regulatory amendment expected soon, with project completion targeted 12 months post-approval.

• M&A activity is progressing, with a potential acquisition expected within 60-90 days, targeting brownfield expansion and storage integration.

• CapEx for Dominican Republic expansion expected at $10 million in Q4 2024 and $25 million in 2025, with total project cost reduced to $35 million.

• Generation expectations for the remainder of 2024 and longer term remain intact despite Q2 production challenges.