Canada's Polaris Renewable Energy Q2 revenue falls on lower output

Overview

• Canada renewable energy operator's Q2 revenue and adjusted EBITDA declined yr/yr on lower production

• Company posted a net loss for Q2, compared to a profit a year earlier

• Lower output reflects higher curtailment in Dominican Republic and normalized hydrology in Peru and Ecuador

Outlook

• Company expects closing of Puerto Rico battery storage agreement by Q3 2026

• Polaris estimates Puerto Rico battery storage project CAPEX at $70 mln to $75 mln

• Company maintains focus on quarterly dividend payments

Result Drivers

• LOWER PRODUCTION - Decreased Q2 output due to higher curtailment in Dominican Republic and normalized hydrology in Peru and Ecuador

• HIGHER ENERGY PRICES - Revenue decline partly offset by higher energy prices in Peru and Panama

• CURTAILMENT IMPACT - Grid curtailment in Dominican Republic continued to significantly affect production

Company press release: ID:nACSCKNSfa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the independent power producers peer group is "buy"

• Wall Street's median 12-month price target for Polaris Renewable Energy Inc is C$23.50, about 48.7% above its July 29 closing price of C$15.80

• The stock recently traded at 68 times the next 12-month earnings vs. a P/E of 35 three months ago

Reuters Recommended Reads

• July 30 - Austria's Verbund H1 revenue falls on lower hydropower output, prices

• July 29 - Canada's Capital Power Q2 revenue and AFFO rise, net loss narrows

• July 29 - Renewables firm EDPR's recurring first-half profit jumps 33%, driven by US business

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)