The following is a summary of the Polaris Renewable Energy's (RAMPF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Polaris has recorded an increase in power production leading to a rise in revenue from $62.6 million to $78.5 million.
Earnings attributable to owners significantly increased from $2.5 million to $11.7 million, driven by higher operating margins and deferred tax benefit.
Adjusted EBITDA jumped from $44.9 million to $57.7 million, reflecting an improvement in operating margins.
The company exhibited better cash management, balancing increased operating cash generation with reduced cash use in investment activities.
Polaris will be paying out a quarterly dividend of $0.15 per share on February 23rd and maintained its target for a 50% payout ratio.
Business Progress:
Power production increase was due to better hydrology conditions in Peru, consistent production in Nicaragua, and greater water availability in Ecuador.
Though rainfall affected output at the Canoa I facility in the Dominican Republic, the company managed to raise overall production.
The construction of Vista Hermosa Solar Park in Panama reflects the growth in Polaris's investment in the region.
The company is actively pursuing optimization at Canoa I via new panel installations, expecting to complete this by July, with positive impacts anticipated in Q3 and full results in Q4.
Polaris is progressing towards its goal of solar storage, while also looking into the repurposing of old panels at Canoa.
Two notable acquisitions are close to completion, promising to strengthen the cash position. The storage project in the Dominican Republic is performing beyond estimations.
Polaris aims to reduce the net debt to EBITDA ratio down to 2% by year-end based on current amortization schedules.
More details: Polaris Infrastructure Inc. IR
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