Star Metro - Polaris Renewable Energy Announces Q3 2025 Results

2025 HIGHLIGHTS

• Third quarter consolidated energy production totaled 181,235 MWh, representing a 7% increase compared to 168,639 MWh in the same quarter last year. The increase is mainly attributable to the contribution from the Puerto Rican wind farm, acquired on March 3, 2025, which was not part of the portfolio in the comparative quarter of 2024, as well as stronger hydrological conditions in Peru.

• The Company generated $19.0 million in revenue from energy sales for the three months ended September 30, 2025, compared to $17.7 million in the same period in 2024.

• Adjusted EBITDA was $12.8 million for the three-month period ended September 30, 2025, compared to

$12.4 million in the same period in 2024.

• Net losses attributable to shareholders of the Company for the quarter ended September 30, 2025 were

$328K or $(0.02) per share - basic, compared to earnings of $451K or $0.02 per share - basic in the comparative period of 2024.

• For the nine months ended September 30, 2025, the Company generated $29.2 million in net cash flow from operating activities, ending with a cash position of $99.1 million, including restricted cash.

• On August 11, 2025 Polaris completed the submission of the Battery Energy Storage System Standard Offer ("BESS") Agreement to the Puerto Rico Energy Bureau ("PREB"). On September 30, 2025, PREB directed the Puerto Rico Electric Power Authority ("PREPA") to file the executed agreement within five days of receiving Financial Oversight and Management Board ("FOMB") approval. Final regulatory approvals from PREPA and FOMB are expected in the next 60 days. The BESS project is expected to be constructed and fully operational by the end of 2026, at which time, Polaris will be entitled to receive monthly fixed and performance-based payments in exchange for providing energy storage services, including capacity and grid support.

• Maintaining a quarterly dividend remains a goal for the Company. In respect of the third quarter of 2025, the Company declared and expects to pay a quarterly dividend of $0.15 per outstanding common share on November 21, 2025.

OPERATING AND FINANCIAL OVERVIEW

During the three months ended September 30, 2025, quarterly consolidated power production was 7% higher than the production in the same period of 2024. The growth was primarily driven by stronger hydrological conditions in Peru, which significantly boosted output across its hydroelectric portfolio and by the contribution of the Punta Lima Wind Farm, acquired in March 2025.

Production in both Ecuador and Peru surpassed prior-year levels, driven by favorable hydrological conditions during this typically dry season and excellent plant availability and technical performance.

The Canoa 1 facility in the Dominican Republic recorded similar production for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. While the project benefited from improved productivity following the full commissioning of the new solar panels (which only partially contributed in Q3 2024), these gains were partially offset by system-wide curtailment that persisted throughout the third quarter of 2025 and was not present in the prior year. We estimate that curtailment impacted generation by approximately 1,000 MWh in the quarter.

Generation at the Punta Lima Wind Farm reflected a lower wind resource than expected during the quarter which is typically the lowest expected quarterly generation of the year. Year to date, Punta Lima remains above target.

Production at the Vista Hermosa Solar Park in Panama for the quarter was consistent with levels recorded in the same period of 2024.

" During the third quarter, we continued to execute on our growth strategy and advance key initiatives across our portfolio. In Puerto Rico, we achieved a key milestone with the approval of our Battery Energy Storage System (BESS) Agreement by the Energy Bureau. We are now preparing to initiate the construction and technical specification phases to enable the project's timely completion once regulatory clearances are obtained. The BESS facility will strengthen grid stability and reinforce Polaris' strategic growth in the region", said Marc Murnaghan, Chief Executive Officer of Polaris Renewable Energy.

About Polaris Renewable Energy Inc.

Polaris Renewable Energy Inc. is a Canadian publicly traded company engaged in the acquisition, development, and operation of renewable energy projects in Latin America & the Caribbean. We are a high-performing and financially sound contributor to the energy transition.

The Company's operations include a geothermal plant (82 MW), four run-of river hydroelectric plants (39 MW), three solar (photovoltaic) projects in operation (35 MW) and an onshore wind park (26 MW).

For more information, contact:

Investor Relations
Polaris Renewable Energy Inc.
Phone: +1 647-245-7199
Email: [email protected]

Cautionary Statements

This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws, which may include , but is not limited to, financial and other projections as well as statements with respect to future events or future performance, management's expectations regarding the Company's growth, results of operations, business prospects and opportunities. n addition, statements relating to estimates of recoverable energy "resources" or energy generation capacities are forward-looking information, as they involve implied assessment, based on certain estimates and assumptions, that electricity can be profitably generated from the described resources 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", "estimates", "goals", "intends", "targets", "aims", "likely", "typically", "potential", "probable", "projects", "continue", "strategy", "proposed", or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking information in this MD&A includes, but is not limited to: the expected production capacity of the Binary Unit at San Jacinto; additional changes to the wells and steamfield to increase production; the ability to successfully capitalize on expansion opportunities in Puerto Rico and the Dominican Republic and to increase the load factor on Canoa Solar Park in Dominican Republic; future dividends; expected annual energy production; sufficiency of cash flows from operations; the ability to satisfy capital requirements and the replacement of debt; the result of changes to the re-injection system over the long-term; and the verification process and timing regarding the sale of carbon emission credits.

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: failure to discover and establish economically recoverable and sustainable resources through exploration and development programs; imprecise estimation of probability simulations prepared to predict prospective resources or energy generation capacities; variations in project parameters and production rates; defects and adverse claims in the title to the Company's properties; failure to obtain or maintain necessary licenses, permits and approvals from government authorities; the impact of changes in foreign currency exchange and interest rates; changes in government regulations and policies, including laws governing development, production, taxes and global tariffs, labour standards and occupational health, safety, toxic substances, resource exploitation and other matters; availability of government initiatives to support renewable energy generation; increase in industry competition; fluctuations in the market price of energy; impact of significant capital cost increases; the ability to file adjustments in respect of applicable power purchase agreements; unexpected or challenging geological conditions; changes to regulatory requirements, both regionally and internationally, governing development, geothermal or hydroelectric resources, production, exports, taxes and global tariffs, labour standards, occupational health, waste disposal, toxic substances, land use, environmental protection, project safety and other matters; economic, social and political risks arising from potential inability of end-users to support the Company's properties; insufficient insurance coverage; inability to obtain equity or debt financing; fluctuations in the market price of the common shares; inability to retain key personnel; the risk of volatility in global financial conditions, as well as a significant decline in general economic conditions; uncertainty of political stability in countries and territories in which the Company operates; uncertainty of the ability of Nicaragua, Peru, Panama, Dominican Republic, Ecuador and Puerto Rico to sell power to neighbouring countries; economic insecurity in Nicaragua, Peru, Panama, Dominican Republic, Ecuador and Puerto Rico; and other development and operating risks, as well as those factors discussed in the section entitled "Risks and Uncertainties" in this MD&A. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. These factors are not intended to represent a complete list of the risk factors that could affect us. These factors should be carefully considered, and readers of this MD&A should not place undue reliance on forward-looking information.

Such forward-looking information is based on a number of material factors and assumptions, including: the Company's historical financial and operating performance; that contracted parties provide goods and/or services on the agreed timeframes; the success and timely completion of planned exploration and expansion programs, including the Company's ability to comply with local, state and federal regulations dealing with operational standards and environmental protection measures; the Company's ability to negotiate and obtain PPAs on favourable terms; the Company's ability to obtain necessary regulatory approvals, permits and licenses in a timely manner; the availability of materials, components or supplies; the Company's ability to solicit competitive bids for drilling operations and obtain access to critical resources; the growth rate in net electricity consumption; continuing support and demand for renewables; continuing availability of government initiatives to support the development of renewable energy generation; the accuracy of volumetric reserve estimation methodology and probabilistic analysis used to estimate the quantity of potentially recoverable energy; environmental, administrative or regulatory barriers to the exploration and development of geothermal or hydroelectric resources of the Company's properties; geological, geophysical, geochemical and other conditions at the Company's properties; the reliability of technical data, including hydrological, extrapolated temperature gradient, geophysical and geochemical surveys and geothermometer calculations; the accuracy of capital expenditure estimates; availability of all necessary capital to fund exploration, development and expansion programs; the Company's competitive position; the ability to continue as a going concern and general economic conditions.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is provided as at the date of this MD&A and the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by applicable laws. There can be no assurance that 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 due to the inherent uncertainty therein.

Additional information about the Company, including the Company's AIF for the year ended December 31, 2024 is available on SEDAR+ at www.sedarplus.ca and on the Company's website at www.polarisREI.com .

Non-GAAP Performance Measures

Certain measures in this press release do not have any standardized meaning as prescribed by IFRS and, therefore, are not considered GAAP measures. Where non-GAAP measures or terms are used, definitions are provided. In this document and in the Company's consolidated financial statements, unless otherwise noted, all financial data is prepared in accordance with IFRS.

This news release includes references to the Company's adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA") and adjusted EBITDA per share, which are non-GAAP measures. These measures should not be considered in isolation or as an alternative to net earnings (loss) attributable to the owners of the Company or other measures of financial performance calculated in accordance with IFRS. Rather, these measures are provided to complement IFRS measures in the analysis of Polaris Renewable Energy's results since the Company believes that the presentation of these measures will enhance an investor's understanding of Polaris Renewable Energy's operating performance. Management's determination of the components of non-GAAP performance

measures are evaluated on a periodic basis in accordance with its policy and are influenced by new transactions and circumstances, a review of stakeholder uses and new applicable regulations. When applicable, changes to the measures are noted and retrospectively applied.

Descriptions and reconciliations of the above noted non-GAAP performance measures are included in Section 13: Non-GAAP Performance Measures in the Company's MD&A for the period ended September 30, 2025 and on the Company's website www.polarisREI.com/Non-GAAP .

SOURCE: Polaris Renewable Energy Inc.

View the original press release on ACCESS Newswire

O.Lessard--SMC