Tidewater Midstream and Infrastructure (TWM) Q2 2025 earnings summary

Executive summary

• Strong commercial momentum for renewables driven by BC's Low Carbon Fuels Act amendments, doubling renewable diesel requirements and mandating Canadian production from April 2025.

• Net loss attributable to shareholders increased to $16.3 million in Q2 2025 from $4.7 million in Q2 2024, mainly due to lower refined product margins, partially offset by favorable derivative contract changes and lower G&A costs.

• Over 70% of forecasted HDRD production for H2 2025 contracted, mostly for R100 renewable diesel at U.S. import parity prices.

• Operational ramp-up at HDRD after April fire; utilization reached 95% of design capacity by end of June.

• Asset sales program progressing, with over $37 million in non-core sales executed or closed in 2025.

Financial highlights

• Q2 2025 consolidated net loss: $16.3 million vs. $4.7 million loss in Q2 2024; adjusted EBITDA: $16.0 million vs. $45.3 million in Q2 2024.

• Tidewater Renewables reported Q2 2025 net income of $13 million and adjusted EBITDA of $10.7 million, both up $8 million from Q1 2025.

• Distributable cash flow per share: $(0.02) in Q2 2025, unchanged from Q2 2024.

• Net debt at June 30, 2025: $570.1 million, up from $505.9 million at June 30, 2024.

• $20 million of consolidated debt repaid in Q2 2025; $55 million available capacity on credit facilities at quarter-end.

Outlook and guidance

• Full-year HDRD throughput guidance of 2,200–2,400 bbl/d reaffirmed, including scheduled Q3 turnaround.

• Full-year 2025 capital program expected at $15–$20 million, excluding Western Pipeline maintenance capital.

• Expectation for refinery throughput to normalize post-October maintenance.

• Anticipate revenue growth and margin expansion in H2 2025 and beyond.

• Targeting $100 million in asset sale proceeds for 2025, with nearly 40% achieved.