Canada's Polaris Renewable Q3 revenue steady despite lower output

Overview

• Canada renewable energy producer's Q3 revenue was flat yr/yr despite lower energy production

• Adjusted EBITDA for Q3 declined slightly compared to last year

Outlook

• Polaris expects continued progress on contractual agreements for Mexico projects ahead of financial close

• Company remains focused on maintaining a quarterly dividend of $0.15 per share

Result Drivers

• PRODUCTION MIX - Lower hydro and Dominican Republic output offset by stronger wind generation in Puerto Rico

• PRICE AND MIX - Higher contracted prices in Peru and favorable generation mix helped maintain revenue despite lower production

• IMPAIRMENT CHARGES - Net loss driven mainly by non-cash impairment charges

Company press release:

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 70.9% above its November 4 closing price of C$13.75

• The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 72 three months ago

Reuters Recommended Reads

• Nov 4 - Sunrun Q3 revenue rises 52%, beats analyst estimates on third-party sales

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• Nov 3 - Canada's Fortis Q3 profit beats estimates on rate base growth; raises dividend

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)