Tidewater Renewables (LCFS) Q2 2025 earnings summary

Executive summary

• Strong commercial momentum for renewables driven by BC policy changes doubling renewable diesel requirements and mandating Canadian production, supporting increased demand and market activity.

• Over 70% of forecasted HDRD production for H2 2025 contracted, mostly for R100 renewable diesel, with pricing aligned to U.S. import parity benchmarks; remainder to be sold on the spot market.

• Operational recovery at HDRD complex after a minor fire, with throughput ramping to 95% of design capacity by end of June.

• Senior credit facility capacity increased by $7 million and maturity extended to February 2027.

• Approval received to amend BC government agreement, providing additional LCFS credits to support SAF project development.

Financial highlights

• Q2 2025 net income was $13 million, up 165% year-over-year and $8 million quarter-over-quarter, driven by new R100 contracts.

• Adjusted EBITDA was $10.7 million, up $8 million from Q1 2025 but down 63% year-over-year.

• Q2 2025 revenue was $73.6 million, down from $147.2 million in Q2 2024.

• Tidewater Midstream posted a consolidated net loss attributable to shareholders of $16.3 million in Q2 2025, compared to a $4.7 million loss in Q2 2024.

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

Outlook and guidance

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

• Expectation for Prince George Refinery throughput to normalize post-October maintenance.

• SAF project final investment decision targeted for 2026, contingent on offtake agreements and financing.

• Targeting $100 million in asset sale proceeds for 2025, with nearly 40% achieved by Q2.

• Maintenance capital for 2025 estimated at $8–10 million, mainly for HDRD Complex turnaround.