TORONTO, ON / ACCESSWIRE / May 5, 2022 / Polaris Infrastructure Inc. (TSX:PIF) ("Polaris Infrastructure" or the "Company"), is pleased to report its financial and operating results for the three-months period ended March 31, 2022. This earnings release should be read in conjunction with Polaris Infrastructure's consolidated financial statements and management's discussion and analysis, which are available on the Company's website at www.polarisinfrastructure.com and have been posted on SEDAR at www.sedar.com . The dollar figures below are denominated in US Dollars unless noted otherwise.
OPERATING AND FINANCIAL OVERVIEW
|Three Months Ended|
|March 31, 2022||March 31, 2021|
Consolidated Power (MWh) net
Net earnings/(loss) attributable to owners
Adjusted EBITDA (i)
Net cash flow from operating activities
Net earnings/(loss) attributable to owners - basic
Net earnings/(loss) attributable to owners - diluted
Adjusted EBITDA (i) - basic
|As at March 31, 2022|
December 31, 2021
Restricted cash - current
Restricted cash - non-current
Total current assets
Current and Long-term debt (ii)
During the three months ended March 31, 2022 quarterly consolidated power production MWs (net) was lower than the same period in 2021, due to lower production in Nicaragua partly offset by higher production from Peru.
For Nicaragua, first quarter 2022 production averaged 52.7 MWs (net), compared to 55.5 MWs (net) in the first quarter of 2021. On a quarter over quarter basis, production increased from 51.4 MWs (net) in the fourth quarter of 2021 to 52.7 MWs (net) in the first quarter 2022. Management is of the view that this increase is a result of reinstating a more outfield injection strategy in early December 2021 leading to more stability in wells 9-3 and 6-2.
Consolidated production in Peru for the three months ended March 31, 2022 was higher due to both higher water availability at 8 de Agosto and Canchayllo and technical issues at the intake that occurred at 8 de Agosto in the first quarter 2021 that were subsequently resolved. These increases were partly offset by the decrease in production at El Carmen, which experienced minor intake issues during the quarter. Such issues have been resolved and management expects higher availability going forward at both El Carmen and 8 de Agosto.
"We are pleased with the first quarter results as we continue to build on our longer-term strategy by delivering operationally, generating strong cash flow and focusing on our diversification. Once the announced acquisitions close, our jurisdictions will increase to five, with six plants in operation, and solar power added to our generation mix, while maintaining 100% of revenues derived in US dollars. In addition, we view all the new jurisdictions as very attractive markets for the Company to grow and develop further renewable projects" noted Marc Murnaghan , Chief Executive Officer of Polaris Infrastructure.
About Polaris Infrastructure Inc.
Polaris Infrastructure Inc. is a Toronto-based company engaged in the acquisition, development and operation of renewable energy projects in Latin America. The Company operates a 72 MW (net) geothermal facility in Nicaragua and three run-of-river hydroelectric facilities in Peru, with approximately 5 MW (net), 8 MW (net) and 20 MW (net) capacity, each. The Company also owns two solar projects with an expected total capacity of approximately 13 MWdc, currently under construction.
Polaris Infrastructure Inc.
Phone: +1 647-245-7199
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, expected closing dates 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 and Dominican Republic to sell power to neighbouring countries; economic insecurity in Nicaragua, Peru, Panama 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, 2021, its annual and interim financial statements and related MD&A is available on SEDAR at www.sedar.com and on the Company's website at www.polarisinfrastructure.com .
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 Infrastructure's results since the Company believes that the presentation of these measures will enhance an investor's understanding of Polaris Infrastructure'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 11: Non-GAAP Performance Measures in the Company's MD&A for the three months ended March 31, 2022 and in the Company's website www.polarisinfrastructure.com/Non-GAAP .
SOURCE: Polaris Infrastructure, Inc.