Earnings release
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TIDEWATER RENEWABLES LTD. ANNOUNCES SECOND QUARTER 2025 RESULTS CALGARY, AB , Aug. 14, 2025 /CNW/ - Tidewater Renewables Ltd. (" Tidewater Renewables " or the " Corporation ") (TSX: LCFS) is pleased to announce that it has filed its condensed interim consolidated financial statements and Management's Discussion and Analysis (" MD&A ") for the three and six months ended June 30, 2025 . SECOND-QUARTER HIGHLIGHTS During the second quarter of 2025, the Corporation reported net income of $13.0 million , a 165% increase over the second quarter of 2024, and a 150% increase over the first quarter of 2025. Tidewater Renewables generated Adjusted EBITDA (1) of $10.7 million during the second quarter of 2025, a 63% decrease over the second quarter of 2024, and a 338% increase over first quarter 2025. During the quarter, Tidewater Renewables successfully advanced its commercial strategy by securing contracted offtakes for over 70% of forecasted production for the second half of 2025. The remaining production is expected to be sold into the spot market, where current conditions present an opportunity to capture additional value. During the quarter the Corporation increased the available capacity under its senior credit facility by $7.0 million , driven by improved cash flows from newly contracted offtakes and improved emission credit economics. On May 7, 2025 , the Corporation extended the maturity date of the Corporation's senior credit facility from February 28, 2026 , to February 28, 2027 . SUBSEQUENT EVENT As part of ongoing development efforts, the Corporation has received support from the Government of British Columbia to amend the existing initiative agreement in connection with the Corporation's sustainable aviation fuel ("SAF") project. The proposed amendment would deliver increased benefits through an expansion of BC LCFS Credits to be awarded under such agreement. Selected financial and operating information are outlined below and should be read with the Corporation's condensed interim consolidated financial statements and related MD&A for the three and six months ended June 30, 2025 , which are available under the Corporation's profile on SEDAR+ at www.sedarplus.ca and on its website at www.tidewater-renewables.com . ____________________________________ (1) See the "Non-GAAP and Other Financial Measures" in this press release and the Corporation's MD&A for information on each non-GAAP financial measure or ratio. Financial Highlights
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Three months ended June 30, Six months ended June 30, (in thousands of Canadian dollars except per share information) 2025 2024 2025 2024 Revenue $ 73,606 $ 147,238 $ 131,280 $ 258,477 Net income $ 13,034 $ 4,935 $ 18,281 $ 12,655 Net income per share – basic $ 0.36 $ 0.14 $ 0.50 $ 0.36 Net income per share – diluted $ 0.35 $ 0.14 $ 0.49 $ 0.35 Adjusted EBITDA (1) $ 10,713 $ 29,570 $ 13,159 $ 58,840 Net cash provided by operating activities $ 18,286 $ 32,494 $ 20,529 $ 72,952 Distributable cash flow (1) $ 788 $ 20,326 $ (3,999) $ 33,107 Distributable cash flow per share – basic (1) $ 0.02 $ 0.58 $ (0.11) $ 0.95 Distributable cash flow per share – diluted (1) $ 0.02 $ 0.56 $ (0.11) $ 0.91 Total common shares outstanding (000s) 36,412 34,868 36,412 34,868 Total assets $ 397,218 $ 1,073,881 $ 397,146 $ 1,073,881 Net debt (1) $ 198,759 $ 316,387 $ 198,759 $ 316,387 (1) Refer to "Non-GAAP and Other Financial Measures". OUTLOOK AND CORPORATE UPDATE Regulatory engagement and commercial momentum Tidewater Renewables continues to advocate for a fair and competitive regulatory framework that supports the growth of Canada's renewable fuels industry. The Corporation remains highly encouraged by the modifications to the Low Carbon Fuels Act the Government of British Columbia announced on February 27, 2025 , which increased the renewable fuel requirement for diesel from 4% to 8% for the 2025 compliance period. Effective April 1, 2025 , the modification also mandated that the renewable fuel content be produced within Canada (collectively, the "Amendments"). These changes are strongly aligned with Tidewater Renewables' strategic vision and reinforce the government's commitment to strengthening Canadian clean fuel production. Since the introduction of the Amendments, the Corporation has experienced a significant increase in commercial activity, reflecting rising demand for Canadian-produced renewable diesel and improved emissions credit economics. As a result of this favourable regulatory shift and the Corporation's ongoing marketing efforts, Tidewater Renewables has successfully secured contracted offtakes for over 70% of forecasted production for the second half of 2025. The majority of these new offtake agreements are priced based on U.S. import parity benchmarks, aligning contract pricing with prevailing U.S. market values and contributing to enhanced market competitiveness. The remaining production is expected to be sold into the spot market, where pricing remains favourable, providing additional upside potential. These positive developments validate Tidewater Renewables' commercial strategy and underscore its position as a leading, reliable supplier of renewable diesel in the Canadian market. Management believes the Corporation is well-positioned to benefit from the ongoing regulatory tailwinds in the low-carbon fuels sector and remains focused on maximizing value creation for shareholders. Trade action On May 5, 2025 , the Canadian International Trade Tribunal (the "Tribunal") issued a decision to terminate its preliminary injury inquiry in respect of the Corporation's countervailing (anti-subsidy) and anti-dumping duty complaint relating to imports of renewable diesel from the U.S. (the "Investigation"). The Tribunal subsequently released reasons for its decision on May 23, 2025 . The Tribunal's decision ends the Investigation arising from the complaint filed by the Corporation with the Canada Border Services Agency ("CBSA") on December 30, 2024 and initiated by the CBSA on March 6, 2025 . The Corporation has reviewed the Tribunal's reasons for its decision and is currently evaluating its available options and legal remedies. This includes, but is not limited to, the potential for filing a new complaint with the CBSA or considering other actions to address the impact of these U.S. renewable diesel imports on the Canadian renewable fuels market.
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SAF development update Tidewater Renewables continues to advance the 6,500 bbl/d SAF project in British Columbia , with the front-end engineering design work now complete. As part of this ongoing development, the Corporation is pleased to report that it has received approval from the Government of British Columbia to amend the existing initiative agreement to provide further support in the form of additional BC LCFS credits. These additional credits are specifically intended to fund the further work required to reach a final investment decision for the project, which remains under evaluation and is now targeted for 2026. While Tidewater Renewables remains optimistic about the project's potential, the decision to proceed with the SAF project is contingent upon the execution of long-term offtake agreements, provincial and federal government support, and obtaining committed financing. HDRD Complex During the second quarter of 2025, the renewable diesel & renewable hydrogen complex (the "HDRD Complex") achieved an average utilization rate of 2,164 bbl/d, or 72% of design capacity. This compares to 2,925 bbl/d, or 98% of design capacity, during the same period in the prior year. During the six months ended June 30, 2025 , the HDRD Complex achieved an average utilization rate of 2,201 bbl/d, or 73% of design capacity, compared to 2,520 bbl/d, or 84% of design capacity, in the same period of 2024. Utilization during the second quarter of 2025 remained relatively consistent with the first quarter of 2025. The decrease during the three and six months ended June 30, 2025 , compared to the same periods in 2024 was primarily attributable to a minor fire incident on April 1, 2025 , at the main renewable diesel process unit within the HDRD Complex. The fire was promptly contained, with the affected area safely isolated and stabilized. As a result, operations at the HDRD Complex were temporarily suspended, but successfully resumed on April 14, 2025 . Following the restart, utilization rates steadily improved, supported by disciplined ramp-up procedures and robust operational oversight. Tidewater Renewables continues to expect the HDRD Complex to achieve an average throughput of between 2,200 to 2,400 bbl/d for the full year 2025, inclusive of the planned turnaround activity during the third quarter of 2025, supported by ongoing operational optimizations and improving market conditions. Capital Program Tidewater Renewables maintenance capital for the year is estimated to be approximately $8.0 million to $10.0 million , allocated primarily to the planned turnaround activity for the HDRD Complex in the third quarter of 2025. The planned turnaround is expected to last three weeks and have a minimal impact on sales as renewable diesel will continue to be sold from inventory during the turnaround. CONFERENCE CALL In conjunction with the earnings release, investors will have the opportunity to listen to Tidewater Renewables' senior management review its second quarter 2025 results via a joint conference call with its controlling shareholder, Tidewater Midstream and Infrastructure Ltd., on Thursday, August 14, 2025 at 10:00 am MDT ( 12:00 pm EDT ). A question and answer session for analysts will follow management's presentation. To join the conference call without operator assistance, please register here approximately 5 minutes in advance to receive an automated call-back when the session begins.
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Alternatively, you can dial 888-510-2154 (toll-free in North America ) or 437-900-0527 to reach a live operator who will place you into the call. For those accessing the call via Cision's investor website, we suggest logging in at least 15 minutes prior to the start of the live event. For those dialing in, participants should ask to be joined into the Tidewater Renewables Ltd. earnings call. A live audio webcast of the conference call will be available here , and archived for 90 days. ABOUT TIDEWATER RENEWABLES Tidewater Renewables is an energy transition company. The Corporation is focused on the production of low carbon fuels, primarily renewable diesel. The Corporation was created in response to the growing demand for renewable fuels in North America and to capitalize on its potential to efficiently turn a wide variety of renewable feedstocks (such as tallow, used cooking oil, distillers corn oil, soybean oil, canola oil and other biomasses) into low carbon fuels. Tidewater Renewables' objective is to become a leading Canadian renewable fuel producer. The Corporation is pursuing this objective through the ownership, development, and operation of clean fuels projects and related infrastructure, that utilize existing proven technologies. Additional information relating to Tidewater Renewables is available on SEDAR+ at www.sedarplus.ca and at www.tidewater-renewables.com . NON-GAAP AND OTHER FINANCIAL MEASURES Throughout this press release and in other materials disclosed by the Corporation, Tidewater Renewables uses a number of non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures when assessing its results and measuring overall performance. The intent of non-GAAP measures and non-GAAP ratios is to provide additional useful information to investors and analysts. These non-GAAP measures and non- GAAP ratios do not have standardized meanings prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other entities. As such, these measures should not be considered in isolation or used as a substitute for measures of performance prepared in accordance with GAAP. Except as otherwise indicated, these non-GAAP financial measures and non-GAAP ratios will be calculated and disclosed on a consistent basis from period to period. Specific adjusting items may only be relevant in certain periods. For more information with respect to the Corporation's non-GAAP measures, non-GAAP ratios, capital management measures and supplementary financial measures see the "Non-GAAP and Other Financial Measures" section of Tidewater Renewables' MD&A which is available on SEDAR+ at www.sedarplus.ca . Non-GAAP Financial Measures The non-GAAP financial measures used by the Corporation are Adjusted EBITDA and distributable cash flow. Adjusted EBITDA Adjusted EBITDA is calculated as income (or loss) before finance costs, taxes, depreciation, share- based compensation, unrealized gains and losses on derivative contracts, transaction costs, and other items considered non-recurring in nature, plus the Corporation's proportionate share of Adjusted EBITDA in its equity investment. Adjusted EBITDA is used by management to set objectives, make operating and capital investment decisions, monitor debt covenants and assess performance. Tidewater Renewables also believes Adjusted EBITDA is a measure widely used by securities analysts, investors, lending institutions and others to evaluate the financial performance of the Corporation. From time to time, the Corporation issues guidance on this key measure. As a result, Adjusted EBITDA is presented as a relevant measure in this press release and the MD&A to assist analysts and readers in assessing the
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performance of the Corporation as seen from management's perspective. Investors should be cautioned that Adjusted EBITDA should not be construed as an alternative to net (loss) income, net cash provided by operating activities or other measures of financial results determined in accordance with GAAP as an indicator of the Corporation's performance and may not be comparable to companies with similar calculations. The following table reconciles net loss, the nearest GAAP measure, to Adjusted EBITDA: Three months ended June 30, Six months ended June 30, (in thousands of Canadian dollars) 2025 2024 2025 2024 Net income $ 13,034 $ 4,935 $ 18,281 $ 12,655 Deferred income tax expense - 1,557 - 3,841 Depreciation 3,877 9,334 7,817 18,898 Finance costs and other 5,504 10,304 10,630 19,655 Share-based compensation 466 (1,241) 555 (113) Unrealized gain (loss) on derivative contracts (11,074) 5,234 (23,159) (317) (Gain) loss on warrant liability revaluation (1,787) (460) 2,756 (945) Transaction costs - - 194 5 Non-recurring expenses 257 1,151 563 2,667 Adjustment to share of profit from equity accounted investments 435 (1,245) (4,479) (1,506) Adjusted EBITDA $ 10,713 $ 29,570 $ 13,159 $ 54,840 Distributable Cash Flow Distributable cash flow is calculated as net cash provided by (used in) operating activities before changes in non-cash working capital plus transaction costs, non-recurring expenses, and after any expenditures that use cash from operations. Changes in non-cash working capital are excluded from the determination of distributable cash flow because they are primarily the result of seasonal fluctuations or other temporary changes, and are generally funded with short-term debt or cash flows from operating activities. Maintenance capital expenditures, including turnarounds, are deducted from distributable cash flow as they are ongoing recurring expenditures which are funded from operating cash flows. Transaction costs are added back as they vary significantly quarter to quarter based on the Corporation's acquisition and disposition activity. Distributable cash flow also excludes non-recurring transactions that do not reflect Tidewater Renewables' ongoing operations. Management believes distributable cash flow is a useful metric for investors when assessing the amount of cash flow generated from the Corporation's normal operations. These cash flows are relevant to the Corporation's ability to internally fund growth projects, alter its capital structure, or distribute returns to shareholders. The following table reconciles net cash provided by (used in) operating activities, the nearest GAAP measure, to distributable cash flow: Three months ended June 30, Six months ended June 30, (in thousands of Canadian dollars) 2025 2024 2025 2024 Net cash provided by operating activities $ 18,286 $ 32,494 $ 20,529 $ 72,952 Add (deduct): Changes in non-cash working capital (10,117) (2,930) (11,962) (21,253) Transaction costs - - 194 5 Non-recurring expenses 257 1,152 563 2,667 Interest and financing charges (3,668) (7,842) (7,534) (16,645) Payment of lease liabilities (1,729) (1,763) (3,523) (3,502) Maintenance capital (2,242) (785) (2,267) (1,117) Distributable cash flow $ 788 $ 20,326 $ (3,999) $ 33,107 Non-GAAP Financial Ratios The Corporation uses the following non-GAAP financial ratios to present aspects of its financial
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performance or financial position. Distributable cash flow per common share (basic and diluted) Distributable cash flow per common share is calculated as distributable cash flow, a non-GAAP financial measure, over the weighted average number of common shares outstanding for the period. Management believes that distributable cash flow per common share provides investors an indicator of funds generated from the business that could be allocated to each shareholder's equity position. Three months ended June 30, Six months ended June 30, (in thousands of Canadian dollars except per share information) 2025 2024 2025 2024 Distributable cash flow $ 788 $ 20,326 $ (3,999) $ 33,107 Weighted average shares outstanding – basic 36,410 34,847 36,400 34,812 Weighted average shares outstanding – diluted 37,154 36,028 37,010 36,194 Distributable cash flow per share – basic $ 0.02 $ 0.58 $ (0.11) $ 0.95 Distributable cash flow per share – diluted $ 0.02 $ 0.56 $ (0.11) $ 0.91 Capital Management Measures Net Debt Net debt is used by the Corporation to monitor its capital structure and financing requirements. It is also used as a measure of the Corporation's overall financial strength. Net debt is defined as amounts owing under the senior credit facility and second lien credit facility, less cash. Net debt excludes working capital, lease liabilities and derivative contracts as the Corporation monitors its capital structure based on net debt to Adjusted EBITDA. The following table reconciles net debt: (in thousands of Canadian dollars) June 30, 2025 December 31, 2024 Senior Credit Facility $ 15,031 $ 20,896 Senior Lien Credit Facility 183,930 175,000 Cash (202) (44) Net debt $ 198,759 $ 195,852 Supplementary Financial Measures Growth Capital Growth capital expenditures are defined as expenditures which are recoverable, incrementally increase cash flow or the earning potential of assets, expand the capacity of current operations, or significantly extend the life of existing assets. This measure can be used by investors to assess the Corporation's discretionary capital spending. Maintenance Capital Maintenance capital expenditures are generally defined as expenditures that support and/or maintain the current capacity, cash flow or earning potential of existing assets without the characteristic benefits associated with growth capital expenditures. These expenditures include major inspections and overhaul costs that are required on a periodic basis. This measure can be used by investors to assess the Corporation's non-discretionary capital spending. Forward-Looking Information Certain statements contained in this press release constitute forward-looking statements and forward-looking information (collectively referred to herein as, "forward-looking statements") within the meaning of applicable Canadian securities laws. Such forward-looking statements relate to
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future events, conditions or future financial performance of Tidewater Renewables based on future economic conditions and courses of action. All statements other than statements of historical fact may be forward-looking statements. Such forward-looking statements are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", "plan", "continue", "forecast", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "will likely result", "are expected to", "will continue", "is anticipated", "believes", "estimated", "intends", "plans", "projection", "outlook" and similar expressions. These statements involve known and unknown risks, assumptions, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. In particular, this press release contains forward-looking statements pertaining to, but not limited to, the following: the percentage of forecasted production subject to offtake agreements; the Corporation's advocacy for a fair and competitive regulatory framework that supports the growth of Canada's renewable fuels industry; the expected effect of the Amendments on the emissions credit markets and the broader Canadian renewable fuels industry; the Corporation's view of regulatory developments in the low-carbon fuels sector; the Corporation's assessment of its options and legal remedies following the Tribunal's decision; the Corporation's pursuit of competitive fairness in the renewable diesel industry; the development of the SAF project, including the timing of a final investment decision and the pursuit of long-term offtake agreements in relation thereto; the Corporation's expectations of average throughput at the HDRD Complex for 2025; the timing of turnaround activities at the HDRD Complex; expectations regarding the Corporation's capital program for 2025; and the sale of renewable diesel from inventory during the turnaround at the HDRD Complex and the effect of the turnaround at the HDRD Complex on sales of renewable diesel. Although the forward-looking statements contained in this press release are based upon assumptions which management of the Corporation believes to be reasonable, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this press release, the Corporation has made assumptions regarding, but not limited to: Tidewater Renewables' ability to execute on its business plan; the timely receipt of all third party, governmental and regulatory approvals and consents sought by the Corporation; general economic and industry trends; operating assumptions relating to the Corporation's projects; expectations around level of output from the Corporation's projects, including assumptions relating to feedstock supply levels; the ownership and operation of Tidewater Renewables' business; regulatory risks; the expansion of production of renewable fuels by competitors; future commodity and renewable energy prices; sustained or growing demand for renewable fuels; the ability for the Corporation to successfully turn a wide variety of renewable feedstocks into low carbon fuels; changes in the credit-worthiness of counterparties; the Corporation's future debt levels, financial stability, future debt reduction initiatives, and its
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ability to repay its debt when due; the Corporation's ability to continue to satisfy the terms and conditions of its credit facilities; the continued availability of the Corporation's credit facilities; the Corporation's ability to obtain additional debt and/or equity financing on satisfactory terms; the Corporation's ability to manage liquidity by working with its current capital providers and other sources and through the sale of emissions credits and renewable diesel; the market, demand and pricing for emissions credits; foreign currency, exchange, inflation and interest rate risks; the availability of options and legal remedies following the Tribunal's decision; the effect of countervailing (anti-subsidy) and anti-dumping duties on the renewable diesel market and the related emission credit market; and the other assumptions set forth in the Corporation's most recent annual information form available under the Corporation's profile on SEDAR+ at www.sedarplus.ca. The Corporation's actual results could differ materially from those anticipated in the forward-looking statements, as a result of numerous known and unknown risks and uncertainties and other factors including, but not limited to: changes in supply and demand for, and the pricing of low carbon products and emissions credits; risks in relation to no duties being imposed or other actions taken by the CBSA and/or the Tribunal as a result of an amended or new complaint by the Corporation in connection with the importation of renewable diesel from the U.S., or such duties or actions are not imposed or taken on a timely basis; general economic, political, market and business conditions, including fluctuations in interest rates, foreign exchange rates, supply chain pressures, inflation, stock market volatility and supply/demand trends; risks and liabilities inherent in the operations related to renewable energy production and storage infrastructure assets, including the lack of operating history and risks associated with forecasting future performance; competition for, among other things, third-party capital, acquisition opportunities, requests for proposals, materials, equipment, labour and skilled personnel; risks related to the environment and changing environmental laws in relation to the operations conducted with the Corporation's capital projects; and the other risks set forth in the Corporation's most recent annual information form available under the Corporation's profile on SEDAR+ at www.sedarplus.ca. The foregoing lists are not exhaustive. Additional information on these and other factors which could affect the Corporation's operations or financial results are set forth in the Corporation's most recent annual information form, its MD&A and in other documents on file with the Canadian Securities regulatory Administrators available under the Corporation's profile on SEDAR+ at www.sedarplus.ca. Management of the Corporation has included the above summary of assumptions and risks related to forward-looking statements provided in this press release in order to provide holders of common shares in the capital of the Corporation with a more complete perspective on the Corporation's current and future operations and such information may not be appropriate for other purposes. The Corporation's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do occur, what benefits the Corporation will derive from them. Readers are therefore cautioned that the foregoing list of important factors is not exhaustive, and they should not unduly rely on the forward-looking statements included in this press release. Tidewater Renewables does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, other than as
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required by applicable securities law. All forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Further information about factors affecting forward-looking statements and management's assumptions and analysis thereof is available in the Corporation's most recent annual information form and other filings made by the Corporation with Canadian provincial securities commissions available under the Corporation's profile on SEDAR+ at www.sedarplus.ca. The financial outlook information contained in this press release is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Additionally, the financial outlook information contained in this press release is subject to the risk factors described above in respect of forward-looking information generally as well as any other specific assumptions and risk factors in relation to such financial outlook noted in this press release. Accordingly, readers are cautioned that the financial outlook information contained in this press release should not be used for purposes other than for which it is disclosed herein. The financial outlook information contained in this press release was approved by management as of the date hereof and was provided for the purpose of providing further information about Tidewater Renewables' current expectations and plans for the future. SOURCE Tidewater Renewables Ltd. View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2025/14/c4855.html %SEDAR: 00052722E For further information: For further information: Jeremy Baines, Chief Executive Officer, Tidewater Renewables Ltd., Email: jbaines@tidewatermidstream.com; Ian Quartly, Chief Financial Officer, Tidewater Renewables Ltd., Email: iquartly@tidewatermidstream.com CO: Tidewater Renewables Ltd. CNW 07:00e 14-AUG-25