Polaris Renewable Energy (PIF) Q3 2024 earnings summary

Executive summary

• Q3 2024 power production was 168,639 MWh, down from 178,877 MWh year-over-year, mainly due to lower output in Nicaragua and Peru, but higher in the Dominican Republic due to new solar panels.

• Revenue for the quarter was $17.7 million, a decrease from $18.8 million in Q3 2023; net earnings attributable to owners were $480,000, down from $1 million year-over-year.

• Adjusted EBITDA was $12.4 million, compared to $13.7 million in the same period last year.

• Announced acquisition of Punta Lima wind farm in Puerto Rico for $20 million, with a 20-year PPA and expected annual production of 50,000–60,000 MWh.

• Cost control measures kept direct costs and G&A expenses flat year-over-year, despite new operating assets.

Financial highlights

• Net cash from operating activities declined due to lower Nicaraguan production and scheduled maintenance; nine-month net cash flow from operating activities was $26.0 million, with a cash position of $46.4 million at quarter end.

• Net cash used in investing activities was lower year-over-year, mainly due to reduced project disbursements.

• Net cash used in financing activities remained comparable to prior periods.

• Quarterly dividend of $0.15 per share announced, payable November 22.

• Total assets as of September 30, 2024, were $505.2 million, with total liabilities of $238.7 million; current and long-term debt stood at $163.3 million.

Outlook and guidance

• Hydrology in Peru expected to normalize in Q4 as rains return, with October already near budget.

• Full benefit from Dominican Republic solar panel upgrades expected in Q4 and Q1 2025.

• Punta Lima acquisition expected to close in Q1 2025, with potential for further expansion and battery storage implementation.

• Plan to issue a $150–$200 million green bond in Q4 to refinance debt and fund growth.