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Polaris Infrastructure reaps reward from increase of capacity in Nicaragua

In a release shared earlier this week, Polaris Infrastructure Inc. (TSX: PIF), reported its audited financial and operating results for the year ended December 31, 2018.  The full Consolidated Financial Statements and Management’s Discussion and Analysis of the company are available at www.polarisinfrastructure.com and have been posted on SEDAR at www.sedar.com.  The dollar figures below are denominated in US Dollars unless noted otherwise.

The company reports:

For the three months ended December 31, 2018, the Company reported revenue of $18.3 million and Adjusted EBITDA of $14.9 million, compared to revenue of $15.6 million and Adjusted EBITDA of $12.9 million for the same period in 2017. The significant increase in revenue was as a result of exceptional power generation at the San Jacinto facility, as well as the 3% annual tariff increase under the power purchase agreement.  The higher average generation in the period resulted from higher than typical steam flows from two new wells connected to the San Jacinto facility in the first quarter of 2018.  See Use of Non-GAAP Measures section below for reconciliation of Adjusted EBITDA to Total income (loss) and comprehensive income (loss).

For the year ended December 31, 2018, the Company reported revenue of $68.8 million and Adjusted EBITDA of $57.8 million, compared to revenue of $60.1 million and Adjusted EBITDA of $50.3 million, for the same period in 2017. The 14.5% increase in revenue was primarily owed to the increase in average generation, as well as the 3% annual tariff increase.  Adjusted EBITDA growth of $7.5 million was also primarily the result of the above-mentioned revenue growth at the San Jacinto facility. See Use of Non-GAAP Measures section below for reconciliation of Adjusted EBITDA to Total income (loss) and comprehensive income (loss).

For the year ended December 31, 2018, the Company had net operating cash inflows of $37.4 million, net investing cash outflows of $14.7 million (substantially related to the 2017/2018 San Jacinto drilling program) and net financing cash outflows of $22.1 million (related to dividends and repayment of debt).  As at December 31, 2018, the Company had consolidated cash of $37.8 million.

“We are very pleased with the financial results for 2018 which justify the investments made to optimize the San Jacinto project” noted Marc Murnaghan, Chief Executive Officer of Polaris Infrastructure.  “While there continue to be opportunities to optimize the San Jacinto project, we anticipate that 2019 will see lower capital investment into this facility, which will allow for increased emphasis on other growth opportunities.  This includes the capital investment required to complete the two key construction projects in Peru.  Once completed, our revenue and cash flow will become more diversified by both asset class and jurisdiction.  We strongly believe that such diversification will benefit all shareholders going forward.”

Source: Company release

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