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Polaris Infrastructure profits from consistent performance of San Jacinto geothermal plant

Pipes at San Jacinto geothermal plant, Nicaragua (source: Polaris Infrastructure)
Alexander Richter 7 Nov 2018

Latin America focused renewable energy company Polaris Infrastructure has reported a solid increase in revenues claiming consistent performance and record-level power generation from its San Jacinto-Tizate geothermal power plant.

Polaris Infrastructure Inc. has released its financial and operating results for the quarter ended September 30, 2018.  The company reports an increase of revenues of around 19% for Q3 of 2018 compared to the same quarter last year. The increase for the first 9 months of the year lies at around 13% compared to the same period last year.

In the report, the company provides some operational and financial highlights for its San Jacinto-Tizate geothermal project/ plant.

  • Record-level power generation and revenue: The San Jacinto-Tizate Power Plant (the “San Jacinto project”) generated 144 GWh (net) (an average of 65.4 MW (net)), resulting in revenue of $18.2 million for the three months ended September 30, 2018, versus revenue of $15.9 million on generation of 125 GWh (net) (an average of 56.7 MW (net)) in the prior year period. The 14% revenue increase was due to higher average production in the third quarter of 2018 as well as the impact of the 3% annual tariff increase.
  • Strong cash flow generation: The Company generated Adjusted EBITDA (a non-GAAP measure) of $15.5 million in the three months ended September 30, 2018, an 20% increase from the prior year period, reflecting strong revenue growth with ongoing control of costs. See Use of Non-GAAP Measures section below for reconciliation of Adjusted EBITDA to Total income (loss) and comprehensive income (loss).
  • Consistent performance from the San Jacinto steamfield: The Company’s wholly-owned operating subsidiary, Polaris Energy Nicaragua S.A. (“PENSA”), which owns and operates the San Jacinto project, successfully connected all recently drilled wells during the second quarter of 2018. Along with the commissioning of a new separator station on pad 12, HPS3, steam production has been sufficient to bring the San Jacinto plant close to its 77 MW (gross) nameplate capacity. At this time the plant is operating in the 70-72 MW (gross) range.

As we reported last week, the company has also announced the acquisition of Union Energy Group Corp.

As disclosed in a press release dated October 30, 2018, subsequent to the September 30, 2018 reporting date, the Company announced the acquisition of Union Energy Group Corp. (“UEG”). UEG is an owner and developer of run-of-river hydro projects located in Peru. The financial and operating results of UEG will be consolidated in the financial statements of the Company beginning as of the period ended December 31, 2018.

“The San Jacinto project has proven to be a strong and reliable producer of power, being sold directly into the Nicaragua national grid,” commented Marc Murnaghan, Chief Executive Officer of Polaris Infrastructure. “We are very pleased, having substantially improved the financial and operating performance of the San Jacinto project, and hence the Company, that we were successful in completing the previously announced acquisition of Union Energy Group. This acquisition reflects the next step in our plan to continue delivering strong shareholder returns, by growing and diversifying the Company.”

Source: Company release