TORONTO, July 3, 2018 /CNW/ - Polaris Infrastructure Inc. (TSX:PIF) ("Polaris Infrastructure" or the "Company"), a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America, is pleased to provide 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."
About Polaris Infrastructure
Polaris Infrastructure is a Toronto-based company engaged in the operation, acquisition and development of renewable energy projects in Latin America. Currently, the Company operates a 72MW geothermal project located in Nicaragua.
Cautionary Statements
This news release contains certain "forward-looking information" which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding the Company's growth, results of operations, estimated future revenue, requirements for additional capital, revenue and production costs, future demand for and prices of electricity, business prospects and opportunities. In addition, statements relating to estimates of recoverable geothermal energy "reserves" or "resources" or energy generation are forward-looking information, as they involve implied assessment, based on certain estimates and assumptions, that the geothermal resources and reserves described can be profitably produced in the future. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current geothermal energy production, development and/or exploration activities and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal industry; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities, or in the commencement of operations; the ability of the Company to continue as a going concern and general economic conditions, as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form. These factors should be considered carefully and readers of this news release should not place undue reliance on forward-looking information.
Although the forward-looking information contained in this news release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The information in this news release, including such forward-looking information, is made as of the date of this news release and, other than as required by applicable securities laws, Polaris Infrastructure assumes no obligation to update or revise such information to reflect new events or circumstances.
SOURCE Polaris Infrastructure Inc.
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