Record operational results reported for San Jacinto geothermal plant in Nicaragua
Polaris Infrastructure reports that it has reached record operational results from its San Jacinto geothermal power plant in Nicaragua, having operated at an average of 63.5 MW capacity during the second quarter of 2018.
Geothermal operator and developer Polaris Infrastructure Inc. (TSX:PIF) recently provided an update with respect to operations at the San Jacinto geothermal plant and comment with respect to record-level power generation achieved during the second quarter of 2018.
We are very pleased to report that the San Jacinto project, operated by the Company’s wholly-owned subsidiary, Polaris Energy Nicaragua S.A., achieved record-level power generation in the second quarter of 2018 of 139,000 MWh (net). This equates to average delivered power generation of approximately 63.5 MW (net). It is important to note that this includes the effect of planned downtime to commission the new HPS3 separation station during the month of April.
Following commissioning of HPS3 in late April 2018, we were able to connect the recently drilled wells, SJ 12-4 and SJ 12-5, to the plant, without constraints. The result of these additional steam flows is revenue for the second quarter of 2018 of $17.7 million, well in excess of the previous quarterly record of $15.9 million. Further details will be announced as part of our full second quarter results release in August 2018, but given minimal variable costs and ongoing cost containment efforts, the increase in revenue is expected to result in substantial free cash flow growth.
“After considerable time, effort and capital investment into two major drilling and infrastructure programs, the connection of all the new wells is an important milestone,” said Marc Murnaghan, Chief Executive Officer of Polaris Infrastructure. “This represents another step-change improvement in average power generation, and therefore cash flow, going forward. With modest contribution during the month of April due to planned downtime, we expect the third quarter to be even stronger. Such results also highlight the fact that our operations have been running without any interruptions despite the current political situation in the country.”
Further, Chairman of the Board of Directors of the Company, Jorge Bernhard, commented, “While we are pleased with operating results from San Jacinto project, we are mindful of the current political situation in Nicaragua, and are hopeful for a peaceful and expedient resolution. We look forward to our continued role in the economic and social development of Nicaragua, which stems from our reliable, affordable and substantial supply of electricity to the national grid. We are also proud of our ongoing commitment to social programming and investment in the communities in which we operate.”
Source: Company release