Earnings release
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1 POLARIS RENEWABLE ENERGY ANNOUNCES Q1 2025 RESULTS TORONTO, ON (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 f igures 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 operate s 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.
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2 OPERATING AND FINANCIAL OVERVIEW Three Months Ended March 31, 2025 March 31, 2024 Energy production Consolidated Power MWh 216,344 213,434 Financials Total revenue $ 20,287 $ 20,632 Net earnings (loss) attributable to owners $ (9,853 ) $ 4,346 Adjusted EBITDA $ 15,031 $ 15,741 Net cash flow from operating activities $ 11,766 $ 8,687 Per share Net earnings (loss) attributable to owners - basic and diluted $ (0.47 ) $ 0.21 Adjusted EBITDA - basic $ 0.71 $ 0.75 Balance Sheet As at March 31, 2025 As at December 31, 2024 Total cash and cash equivalents (Restricted and Unrestricted) $ 91,593 $ 217,882 Total current assets $ 104,956 $ 228,563 Total assets $ 558,214 $ 662,105 Current and Long-term debt $ 219,022 $ 328,349 Total liabilities $ 311,823 $ 402,579 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 produ ction. 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 so lar 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.
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3 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 stor age 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
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4 Cautionary Statements 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, construction plans in Panama, production in the fourth quarter in Nicaragua and synergies of the acquisitions discussed above, a nd 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 ass umptions, 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, per mits 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 occupationa l 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, geo thermal or hydroelectric resources, production, exports and imports, 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 vol atility 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, Ecuador and Dominican Republic to sell power to neighbouring countries; economic insecurity in Nicaragua, Peru, Panama, Ecuador, Puerto Rico 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
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5 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 assu rance 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 and sustainability report for the year ended December 31, 2024, its annual and interim financial statements and related MD&A is available on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.PolarisREI.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 isola tion 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 Pol aris Renewable Energy’s results since the Company believes that the presentation of these measures will enhance an investor’s understanding of Polaris Renewable Energy’s operating performance. Management's determination of the components of non -GAAP perfor mance 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 13: Non- GAAP Performance Measures in the Company's MD&A for the period ended March 31, 2025 and on the Company’s website www.polarisREI.com/Non-GAAP.