Mr. Steve Dalton reports
REVOLVE REPORTS FISCAL YEAR 2023 FINANCIAL RESULTS IN LINE WITH EXPECTATIONS
Revolve Renewable Power Corp. has released its financial results for the year ended June 30, 2023 (fiscal year 2023). All amounts reported are in U.S. dollars.
FY 2023 marked a significant transition for the company as it began the implementation of its strategy to move to an owner and operator of renewable energy projects, incorporating a focus on building long-term recurring revenue and cash flow for the business.
During FY 2023 the company completed a number of material transactions including: (i) the acquisition of Centrica Business Solutions Mexico SA de CV and its 2.85-megawatt portfolio of operating distribution generation assets and a further three MW distribution generation asset that is under construction; (ii) the completion of the construction and commissioning of a 3.2-megwatt-hour battery storage system in Cancun, Mexico; and (iii) the successful sale of 1,250 MW of U.S. utility-scale development assets to Engie.
Key FY 2023 business and financial highlights:
- Total revenues of $1,109,374 for the 12-month period ending June 30, 2023, consisting of electricity generation revenue from the company's operational distributed generation (DG) portfolio and receipt of the initial proceeds from the sale of the development rights to the Bouse and Parker solar and storage projects to Engie. The company recorded no revenue for the comparable 12-month period financial period to June 30, 2022.
- Renewable energy generation for the 12-month period ending June 30, 2023, was 1,618,456 kilowatt hours. Extensions to various power purchase agreements (PPAs) agreed with existing customers increasing the average contract length of PPAs remaining to just under nine years.
- Strong gross profit margin trend continues driven by low operating costs associated with rooftop solar DG projects and contribution from utility-scale project sale proceeds. Gross margins for the 12-month period ending June 30, 2023, were 90 per cent.
- DG assets under construction at the year ended June 30, 2023, consist of a three MW CHP (combined heat and power) project. The company announced the successful commissioning of a 3.2 MWh battery storage project in May, 2023, which is now operational and generating revenue.
- The company continues to increase its DG project pipeline, which currently stands at approximately 150 MW as at the date of this release. This increase is the result of a number of business development initiatives undertaken since the beginning of the year, which have begun to generate new project opportunities. The company continues to remain focused on converting this pipeline into signed power purchase agreements and has signed a number of new letters of intent for three new distribution generation projects with a combined capacity of 1.9 MW.
- Utility-scale projects under development stand at 2,838 MW as at the date of this release, after taking into effect (i) the sale of 1,250 MW of U.S. solar and storage projects to Engie on Jan. 11, 2023; and (ii) the addition of 480 MW of new greenfield development projects in the United States during the period.
- Net loss for the year ending June 30, 2023, was ($2,342,561) compared with a net loss of ($6,456,046) for the year ending June 30, 2022.
- Cash on balance sheet as at June 30, 2023, was $611,922, following receipt of the $2-million upfront payment from Engie from the sale of the Bouse and Parker solar and storage projects. This does not include a further $874,000 held as interconnection and security projects for a number of the company's utility-scale development projects.
Material subsequent events occurring after June 30, 2023:
- On July 12, 2023, the company announced the completion of the interconnection milestone related to the 250 MW Parker solar and storage project (sold to Engie in January, 2023). This resulted in the company receiving a further milestone payment of $850,000 during August, 2023. The company also realized revenue of $240,000 with respect to this project which was moved from deferred revenue.
- On Sept. 11, 2023, the company announced a development update in relation to its 80 MWh Vernal battery storage project in Vernal, Utah, whereby the company had completed the last phase of the interconnection process and indicated that it expected to sign an interconnection agreement for the project before the year-end.
- On Oct. 4, 2023, the company announced the proposed acquisition of WindRiver Power Corp., a Canadian renewable energy operator and developer. This proposed acquisition would add 96.63 MW of net operational and development capacity to the company's portfolio. All the projects in WindRiver are in located Canada.
Steve Dalton, chief executive officer of Revolve, commented: "Our financial results for FY 2023 provide an early indicator to shareholders on our broader strategy towards building a North American-focused renewable independent power producer. We began the financial year with the acquisition of the Centrica DG portfolio in Mexico, adding our first portfolio of long-term operating and revenue-generating assets. The company then completed our first significant sale of development assets in the U.S. to Engie in January, 2023, which has already yield $2.85-million in revenues and with the potential to generate a further $50-million-plus in revenues for the company over the coming years. Finally, we have recently announced the acquisition of Windriver Corp. providing the company with further recurring revenues and cash flow as well as a platform to accelerate our growth in the Canadian market. The company has moved into FY 2024 with a strong pipeline of DG projects, a number of utility-scale projects moving towards mid- to late-stage development and a clear M&A strategy to fast-track its move to an owner and operator business model."
The company continues to reiterate its previous financial guidance for FY 2024 as announced on Sept. 5, 2023. The company is projecting revenue to increase to $5-million and to break-even at an EBITDA (earnings before interest, taxes, depreciation and amortization) level for FY 2024. The increased revenues and profitability are expected to be driven by the company's existing operational distribution generation portfolio as well as in particular further contingent milestone payments from utility-scale projects previously sold to third parties.
About Revolve Renewable Power Corp.
Revolve was formed in 2012 to capitalize on the growing global demand for renewable power. Revolve develops utility-scale wind, solar and battery storage projects in the U.S. and Mexico with a portfolio of approximately 2,838 MW under development. The company has a second division, Revolve Renewable Business Solutions, which installs and operates sub-20 MW behind-the-metre distributed generation assets. Revolve Renewable Business Solutions currently has an operating portfolio of six MW with an additional three MW under construction phase and 156 MW under development.
Revolve has an accomplished management team with a demonstrated record of taking projects from greenfield through to ready-to-build (RTB) status and successfully concluding project sales to large operators of utility-scale renewable energy projects. To date, Revolve has developed and sold over 1,550 MW of projects.
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