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Polaris Renewable Energy Announces Q3 2023 Results

ACCESSWIRE - Thu Nov 2, 2023

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 and have been posted on SEDAR+ at The dollar figures below are denominated in US Dollars unless noted otherwise.


  • 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.


Three Months EndedNine Months Ended

September 30, 2023September 30, 2022September 30, 2023September 30, 2022
Energy production
Consolidated Power MWh

Total revenue
Net earnings (loss) attributable to owners
Adjusted EBITDA
Net cash flow from operating activities

Per share
Net earnings (loss) attributable to owners - basic and diluted
Adjusted EBITDA - basic

Balance Sheet
As at September 30, 2023As at
December 31, 2022
Total Cash (Restricted and Unrestricted)
Total current assets
Total assets
Current and Long-term debt
Total liabilities

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

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 and on the Company's website at

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

SOURCE: Polaris Renewable Energy Inc.

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