Profit doubled in Q4 closing at US$1.06 million, up from US$597,984

Durrant Pate/Contributor

MPC Caribbean Clean Energy Jamaican subsidiary, Paradise Park Solar Farm drove its fourth quarter performance in which profit for the period doubled.

Profit for the December quarter closed at US$1.06 million, up from US$597,984 while profit for the year ended at US$5.69 million compared to US$4.42 million. Revenues from the Jamaican solar farm subsidiary are up 5.38 per cent for the quarter above projection.

However, year-over-year, the revenue earning for the Barbados-based MPC Caribbean Clean Energy is slightly down at minus 3.85 per cent for the full year. Higher irradiation in combination with high availability of the plant due to the executed repair measures, led to positive December quarterly result.

Operating expenditure (OPEX) was above the budget by 9.45 per cent for the fourth quarter and 7.34 per cent for the full year. However, higher revenues for the December quarter have offset the higher OPEX and as a result, EBITDA was 6.14 per cent above the budget but is down 6.10 per cent for the full year.

Repair work on Paradise Park

The technical performance of Paradise Park, located in Savanna-la-mar, Westmoreland, is positively affected after the completion of the repair work on the MV transformer. This has led to a higher than budgeted production in the fourth quarter of 2022.

The trend recorded in Paradise Park and the other subsidiaries in the region in the last quarter of the year was positive as none of the assets were affected by the weather conditions during the hurricane season.

However, the expected restriction in energy production due to rain and cloudy weather has been recorded.

The management reports that the noticeable La Niña phenomenon continues to impact energy production across the region and assets, arguing that after three consecutive years of La Niña, which is a very rare event, experts assume that the effect shall phase out by mid-2023.

Other subsidiaries Q4 performance

Tilawind | Wind Farm | Costa Rica

Power generation in Q4 was 15.28 per cent below the budget (Year-to-date YDT: -18.58%), further driven by the combination of poor wind conditions in the region and partial unavailability of full plant capacity due to repair process of the blades The repairs were completed during October and further repairs of remaining three blades and identified cracks will be completed in the second half of 2023, which is the period of low wind season.

This is inevitably reflected in the revenues, which is 10.33 per cent lower than the budget (YTD: -13.07%). OPEX was 10.00 per cent below budget (YTD: -11.34%). Due to the trend in technical performance that was recognized in the first half of 2022 and the associated revenue expectations, all expenses were reviewed and reduced to an acceptable minimum level. Despite the implemented savings, EBITDA was 11.00 per cent below the budget (YTD: -13.56%).

San Isidro | Solar Park | El Salvador

The technical performance of El Salvadoran asset was 0.58 per cent below the budget (YTD: -5.71%). Achieved revenue was higher by 4.63 per cent (YTD: -4.26%) due to a higher tariff than initially budgeted. The replacement of the inverters and the favourable weather conditions with high irradiation was a key reason for the positive trend in the power generation.

Due to an agreement between the SPV and O&M contractor mentioned last quarter, significant expenses were reduced which resulted in OPEX being 52.24 per cent below forecast (YTD: -41.55%). The resulting EBITDA was 37.88 per cent above the budget (YTD: 16.51%).

Monte Plata I | Solar Park | Dominican Republic

The underperformance is reflected in the results for Q4, with lower revenues of 9.26 per cent (YTD: -12.63%) resulting from 9.59 per cent lower power generation compared to the budget (YTD: -12.63%). OPEX was significantly affected by additional unplanned expenses to identify the cause of the underperformance by 105.27 per cent above budget (YTD: +40.34%).

The resulting EBITDA was mainly affected by the increased OPEX and is 35.93 per cent below the budget (YTD: -25.15%). With regard to the expansion (Monte Plata II) of our operating solar PV project in the Dominican Republic, Financial close is expected in Q1 2023 or early Q2.

An extension of early works in preparation for substantial civil works has been signed with the date of commercial operation of the expanded capacity constituting Monte Plata II remaining planned for Q1 2024.