Tidewater Renewables (LCFS) Q1 2025 earnings summary

Executive summary

• Q1 2025 financial results were mixed, with net income at $5.2 million, impacted by asset sales, contract terminations, and unrealized gains on derivatives.

• Regulatory changes in British Columbia increased the renewable diesel requirement to 8% and mandated Canadian production, supporting sector sustainability and future profitability.

• Completed sale of interest in Rimrock Renewables LP for up to $7.8 million, with proceeds used to reduce debt.

• Amended and extended credit facilities, increasing capacity by $15 million, waiving quarterly covenants until March 2026, and extending senior credit facility maturity to February 2027.

• The Canadian International Trade Tribunal terminated the preliminary injury inquiry into U.S. renewable diesel imports; legal remedies are being pursued.

Financial highlights

• Net income for Q1 2025 was $5.2 million, up $8.6 million from Q4 2024 but down from $7.7 million in Q1 2024.

• Adjusted EBITDA was $2.4 million, down from $6 million in Q4 2024 and $25.3 million in Q1 2024, reflecting lower margins and asset sales.

• Revenue for Q1 2025 was $57.7 million, down from $111.2 million in Q1 2024.

• Net cash from operating activities was $2.2 million, down from $40.5 million year-over-year.

• Net debt stood at $200.7 million as of March 31, 2025.

Outlook and guidance

• Regulatory changes in BC are expected to boost demand and margins, with positive market trends supporting improved profitability for the remainder of 2025.

• HDRD Complex throughput for 2025 is expected to average 2,200–2,400 barrels per day, including planned downtime.

• Maintenance capital expenditure for 2025 is estimated at $8–$10 million, mainly for a major turnaround in Q3.