Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Polaris Renewable Energy Inc (RAMPF) reported an increase in consolidated power production for the quarter, reaching 216,344 megawatt hours compared to 213,434 megawatt hours in the same period last year.

• The company successfully increased production in Ecuador, with a notable rise from 10,223 megawatt hours last year to 11,999 megawatt hours in the first quarter of 2025.

• Net cash from operating activities rose to $11.8 million, up from $8.7 million in the same period last year, indicating improved cash generation.

• Polaris Renewable Energy Inc (RAMPF) announced a quarterly dividend of $0.15 per share, demonstrating a commitment to returning value to shareholders.

• The company is well-positioned financially with $91 million in cash on hand, allowing it to fund growth initiatives such as the ASAP battery program in Puerto Rico.

• Polaris Renewable Energy Inc (RAMPF) reported a net loss of $1.4 million for the quarter, primarily due to one-time finance costs associated with the pay down of four loans.

• Production in Nicaragua was slightly lower compared to the same period last year, attributed to unplanned downtime in the binary unit.

• Revenue for the quarter decreased slightly to $20.3 million from $20.6 million in the same period last year.

• Net cash used in investing activities significantly increased to $14.7 million, primarily due to the acquisition of the Punta Lima Wind Farm.

• The company faces potential tariff risks in its Puerto Rico project, which could impact the project’s financial viability if tariffs are excessively high.

• Warning! GuruFocus has detected 5 Warning Signs with RAMPF.

Q: Given that a lot of the cash you have on the balance sheet has come from debt, would you look to put any more debt on the Puerto Rico asset at this time? A: No, not at this time. (Unidentified_3)

Q: How might tariffs or trade restrictions impact investment in Puerto Rico, and could it create uncertainty for the project? A: If tariffs are imposed, about 70% of the CapEx, mainly the containers with the batteries, would be affected. However, we are discussing a pass-through clause for tariffs with the offtaker, which should mitigate the impact on returns. (Unidentified_3)

Q: Are there any tariff scenarios where the project would not go forward, such as tariffs over 100%? A: In any case, no. Even with a 100% tariff, the project would still be viable as similar projects were approved with higher prices 12 to 18 months ago. (Unidentified_3)