Polaris Renewable Energy Announces Q1 2025 Results

TORONTO, ON / ACCESS Newswire / May 1, 2025 / Polaris Renewable Energy Inc. (TSX:PIF) ("Polaris Renewable Energy" or the "Company"), is pleased to report its financial and operating results for the three months ended March 31, 2025. This earnings release should be read in conjunction with the Company's condensed consolidated interim financial statements and management's discussion and analysis, which are available on the Company's website at www.PolarisREI.com and have been posted on SEDAR+ at www.sedarplus.ca. The dollar figures below are denominated in US Dollars unless noted otherwise.

2025 HIGHLIGHTS

• First quarter consolidated energy production of 216,344 MWh, compared to 213,434 MWh in the first quarter last year. The modest increase is mainly attributable to the production of the Puerto Rican wind farm which was acquired on March 3, 2025 and did not contribute to consolidated energy production during the comparative quarter of 2024.

• The Company generated $20.3 million in revenue from energy sales for the three months ended March 31, 2025, comparable to $20.6 million in the same period in 2024.

• Adjusted EBITDA was $15.0 million for the three-month period ended March 31, 2025, compared to Adjusted EBITDA of $15.7 million in the same period in 2024.

• In January 2025 the company settled four (4) of its outstanding credit facilities. The early settlement was part of the terms and purpose of the Green Bonds issued on December 3, 2024 and part of the Company's debt optimization strategy to reduce borrowing costs.

• Net losses attributable to shareholders of the Company, driven by one time-off finance costs, for the three months ended March 31, 2025 were $10,441 or -$0.49 per share - basic, compared to net earnings attributable to shareholders of the Company of $4,346 or $0.21 per share - basic in the comparative period of 2024.

• For the three-month period ended March 31, 2025, the Company generated $11.8 million in net cash flow from operating activities, ending with a cash position of $91.6 million, including restricted cash.

• On March 3, 2025, the Company announced it had closed the Equity Capital Contribution Agreement ("ECCA") with respect to Punta Lima Wind Farm LLC ("PLWF" or the "Project"), a wholly owned subsidiary of Santander Bank N.A. ("Santander"). The Project operates an onshore wind farm with a nameplate capacity of 26.0 MW's located in the Municipality of Naguabo, Puerto Rico. The Project has a Power Purchase Agreement ("PPA") in place until 2044 with a current price of $149.14/MWh. Such PPA has a variable inflator in place for the first 11 years, at which point the price decreases to $129.36 per MWh, then resumes annual escalations. The transaction was completed using a tax-equity structure in which Polaris, through a wholly owned subsidiary, operates the Project and Santander retains a tax equity interest in the Project. The agreed upon equity contribution is $20 Million.

OPERATING AND FINANCIAL OVERVIEW

During the three months ended March 31, 2025, quarterly consolidated power production was in line with production in the same period of 2024. The most recent acquisition, Punta Lima Wind Farm only contributed one month production to the consolidated production. On the other hand, modest decreases in Nicaraguan and Panamanian energy production were offset by increases in Dominican Republic and Ecuador.

Production in Nicaragua was marginally lower in the first quarter of 2025 when compared to the same quarter in 2024. This is principally as a result of running the Binary unit at lower than maximum output as production of the steam units was only 0.8% down quarter over quarter.

Consolidated production in Peru for the three months ended March 31, 2025 was comparable to the same period in 2024.

The Canoa 1 facility in the Dominican Republic generated 11% more electricity during the three months ended March 31, 2025, compared to the three months ended March 31, 2024. The increase primarily reflects improved productivity from the newly installed solar panels, with a portion of the gain moderated by curtailment experienced earlier in the quarter.

For Ecuador, in the first quarter of 2025, HSJM generated 11,999 MWh, representing a significant increase compared to the same period in 2024. This performance also exceeded management expectations, primarily driven by a particularly strong rainy season.

Vista Hermosa Solar Park in Panama production was below the production recorded in Q1 2024. This minor variance was due to brief periods of downtime during the quarter. Overall, production remained broadly consistent with historical levels.

Production for Punta Lima since March 3, 2025, the acquisition date, was 3,558 MWh. The total first quarter production for 2025 was 16,150 MWh.

"The first quarter of 2025 was marked by the successful acquisition of Punta Lima Wind Farm in Puerto Rico, continued focus on operational excellence, and strategic debt restructuring through the repayment of debt with proceeds of the Green Bonds. While production varied across jurisdictions, our portfolio delivered strong consolidated results. In addition, we are actively pursuing both organic and inorganic growth opportunities-including potential investments in battery energy storage solutions-to position the Company for long-term value creation and energy transition leadership", said Marc Murnaghan, Chief Executive Officer of Polaris Renewable Energy.

About Polaris Renewable Energy Inc.

Polaris Renewable Energy Inc. is a Canadian publicly traded company engaged in the acquisition, development, and operation of renewable energy projects in Latin America & the Caribbean. We are a high-performing and financially sound contributor to the energy transition.

The Company's operations include a geothermal plant (82 MW), four run-of river hydroelectric plants (39 MW), three solar (photovoltaic) projects in operation (35 MW) and an onshore wind park (26 MW).

For more information, contact:

Investor Relations
Polaris Renewable Energy Inc.

Phone: +1 647-245-7199
Email: info@PolarisREI.com

SOURCE: Polaris Renewable Energy Inc.

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