Polaris Renewable Energy Q4 Earnings Call Highlights

Financial Performance - The company reported adjusted EBITDA of $56.5 million, reflecting a 3% year-over-year increase, with operating margins maintained despite inflationary pressures due to disciplined cost management [1] - Consolidated energy production for full-year 2025 reached 810,731 MWh, a 6% increase from 764,756 MWh in 2024, attributed to the addition of the Punta Lima Wind Farm and improved hydrology in Peru and Ecuador [4] Regional Performance - The Canoa I solar facility in the Dominican Republic experienced a 2% decrease in output year-to-date, with curtailments totaling 3,500 MWh for the quarter and 5,900 MWh for the year [2] - Hydroelectric assets in Peru and Ecuador showed strong performance, with Peru's hydro output increasing by 12% and Ecuador's by 19% year-to-date compared to 2024, supported by favorable weather conditions [3] Shareholder Returns - The company announced a quarterly dividend of $0.15 per share, continuing a 10-year track record of consistent payments, totaling approximately $105 million returned to shareholders over that period [5] - In 2025, the company repurchased and canceled 169,800 common shares for about $1.5 million, with 80,000 shares repurchased in the fourth quarter for approximately $0.8 million [6] Cash Position and Debt Structure - The company entered 2025 with a consolidated cash position of $93.2 million, including restricted cash, and has a simplified debt structure following debt prepayments and the integration of Punta Lima [7] Production Outlook and Maintenance - Major maintenance at the San Jacinto facility was completed in 2026, with a consolidated production budget range for the year estimated at approximately 775–790 GWh, factoring in maintenance and curtailments [8] Growth Initiatives - The company is focusing on an energy storage system (ESS) project in Puerto Rico, with approvals moving forward after delays, and is also pursuing a small solar project acquisition [9][10] - In Puerto Rico, the company is participating in an RFP process for solar plus battery energy storage systems, with contracts expected to be signed by June [11] - In Mexico, the company signed an exclusivity agreement for access to approximately 1,000 MW of projects, with upcoming contracting pathways planned [12] Market Challenges and Solutions - The company anticipates curtailments in the Dominican Republic to be around 10,000 MWh this year, with a belief that energy storage solutions will be key to managing excess energy [14][15]