Polaris Infrastructure reports record revenues of $50m for 2015

Plant in San Jacinto Tizate, Nicaragua (source: PowerEngineers)
Alexander Richter 14 Mar 2016

Polaris Infrastructure reports record revenues for 2015 with $50 million and an EBITDA of around $39 million.

In its financial reporting for the year of 2015, Polaris Infrastructure reports some key operational and financial results.

The San Jacinto-Tizate Power Plant generated 433,988 MWh (net) (an average of 49.5 MW (net)), resulting in revenue of $50.1 million for the year ended December 31, 2015, versus revenue of $48.2 million on generation of 429,740 MWh (net) (an average of 49.0 MW (net)) in the prior year. The 4.1% revenue increase was due to higher average production in 2015 as well as the impact of the 3% annual tariff increase.

Significant increase in Adjusted EBITDA: The Company generated Adjusted EBITDA (a non-GAAP measure) of $39.2 million in 2015, a 14% increase from 2014, driven by increased San Jacinto project revenues combined with a significant reduction in general and administrative expenses (net of share-based compensation). See Use of Non-GAAP Measures section below for reconciliation of Adjusted EBITDA to Total loss and comprehensive loss.

Progress continues with 2015/2016 Drilling Program: The first new production well, SJ 6-3, was completed in late December 2015 and is currently in the midst of thermal recovery, after which production testing will be completed. We are confident that SJ 6-3 is a commercial well and will provide specific guidance as to estimated additional steam flows and hence MW contribution once production testing is complete. Drilling of the second new production well, SJ14-1, is ongoing, with the timeline having been extended by mechanical issues. We have achieved circulation losses however, and expect to complete drilling of SJ 14-1 by the end of March 2016. Once SJ 14-1 drilling is complete, we look forward to continuing with the balance of the 2015/2016 Drilling Program, including a third new production well.

The Company, through its 95%-owned subsidiary, Cerro Colorado Power, S.A., continues to engage in discussions and due diligence with both the Nicaragua Ministry of Energy and Mines as well as The World Bank Group  with respect to advancing the Casita-San Cristobal geothermal project. The company remains optimistic with respect to accessing attractive risk mitigation financing for purposes of completing an initial drilling program, and will provide further updates as they become available.

Source: Company release via Stockhouse