Calgary, Alberta--(Newsfile Corp. - August 25, 2023) - Green Impact Partners (TSXV: GIP) ("GIP" or the "Company") is pleased to provide an update on its renewable natural gas ("RNG") projects and a summary of its second quarter 2023 results.
"We're excited about our efforts to transform waste into energy which is driving remarkable strides toward a more sustainable future and a significant positive effect on the environment," said Jesse Douglas, Chief Executive Officer. "I'm pleased with the headway we're making on our flagship project - the Future Energy Park. We have assembled an exceptional team of architects, engineers, planners, environmental specialists, and landscape architects to build a landmark facility showcasing the technological ingenuity involved in the production of biofuels in the Province of Alberta."
Second Quarter Highlights
Commissioning Activities Approach Completion at GreenGas Colorado RNG Facility ("GreenGas"): Commissioning activities continue at GreenGas Colorado with commercial operations at full plant capacity anticipated in the coming weeks. While the commissioning process has taken longer than anticipated, design and component system testing results and early gas production are favorable with the facility expected to produce gas at or above the expected run-rate production of 360,000 MMBtu per year.
Close of $10 Million Private Placement: In June 2023, GIP closed a private placement of 1,000,000 common shares in the capital of the Company at a price of $10.00 per share for gross proceeds of $10.0 million. The net proceeds of the private placement are earmarked for continued project expenditures on Future Energy Park to allow GIP to commence earthwork activities in the coming weeks, and for general and administrative purposes and working capital requirements until financial close with Amber Infrastructure Group ("Amber Infrastructure") occurs, anticipated in late 2023.
Future Energy Park Achieves Key Regulatory Milestone: In July 2023, GIP received approval from the Alberta Utilities Commission ("AUC") to construct and operate a 30-MW natural gas-fired cogeneration facility for the Future Energy Park. The cogeneration plant will provide high efficiency steam and electricity to the biofuels facility as part of its integrated operations philosophy. GIP is working with the City of Calgary to secure municipal permits and anticipates starting earthworks activities at the project site in the coming weeks.
|(in thousands of dollars)||June 30, 2023 |
|June 30, 2022|
|IFRS FINANCIAL MEASURES|
|(in thousands of dollars)||June 30, 2023|
|June 30, 2022|
|IFRS FINANCIAL MEASURES|
1 See Non-IFRS Measures below
Revenue: Revenues decreased by $29.8 million and $36.0 million for the three and six months ended June 30, 2023, respectively, due to lower volumes and commodity prices as compared to the same periods in the prior year.
Adjusted EBITDA: Adjusted EBITDA increased by $1.0 million and decreased by $1.3 million for the three and six months ended June 30, 2023, respectively, as compared to the same periods in the prior year. These results are mainly due to a decrease in direct costs because of lower commodity prices and improved margins due to measures implemented by the Company to manage upward cost pressure, offset in the first three months of 2023 by increased electricity and regulatory costs.
For a more detailed discussion on GIP's results for the three and six months ended June 30, 2023, please see the Company's financial statements and management's discussion & analysis ("MD&A"), which are available at: https://www.greenipi.com/investors/ and on the Company's SEDAR page at www.sedar.com.
About Green Impact Partners
Green Impact Partners is focused on creating a sustainable future and inclusive planet through the development of clean, carbon neutral energy. GIP acquires, develops, and builds RNG projects, with the intention of building, owning and operating a portfolio of RNG facilities, and participates in a wide range of zero-carbon opportunities during all stages of a project's lifecycle - from idea generation through to operations. GIP has a growing portfolio of RNG and clean bioenergy projects under development, representing approximately $3 billion in anticipated capital expenditures. GIP is a leading developer of clean transition energy and is well positioned to be a leading producer of. In its pursuit of net zero earth impact, GIP is positioned to be a leading producer of net zero carbon energy in North America. GIP's shares trade on the TSX Venture Exchange under the symbol "GIP". For more information about GIP and its projects, visit www.greenipi.com.
EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. EBITDA is a non-IFRS measure, calculated by adding back the impacts of income tax, finance costs, depreciation and amortization to net income (loss) for the period. Net income (loss) is the most directly comparable IFRS financial measure. EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures provided by other issuers. Management believes EBITDA is an important performance metric that measures recurring cash flows before changes in non-cash working capital.
Adjusted EBITDA is defined as EBITDA adjusted for certain non-operating, non-recurring and non-cash items. Adjusted EBITDA is used by management to evaluate the earnings and performance of the Company before consideration of capital, financing and tax structures. Net income (loss) is the most directly comparable IFRS financial measure. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures provided by other issuers. Prior period Adjusted EBITDA has been calculated and presented in accordance with the current period calculation and presentation.
Management believes that in addition to net income (loss), Adjusted EBITDA is a useful supplemental measure to enhance investors' understanding of the results generated by the Company's principal business activities prior to consideration of how those activities are financed, how the results are taxed, how the results are impacted by non-cash charges, and charges that are irregular in nature or not reflective of the Company's core operations. Management calculates these adjustments consistently from period to period. Adjusted EBITDA is used by management to determine the Company's ability to service debt and finance capital expenditures. Management believes that Adjusted EBITDA as a measure is indicative of how the fundamental business is performing.
For Further Information
This news release contains forward-looking statements and/or forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. When used in this release, such words as "would", "will", "anticipates", believes", "explores" and similar expressions, as they relate to GIP, or its management, are intended to identify such forward-looking statements. Such forward-looking statements reflect the current views of GIP with respect to future events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause GIP's actual results, performance or achievements to be materially different from any expected future results, performance or achievement that may be expressed or implied by such forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to: the impact of general economic conditions in Canada and the United States, including the ongoing COVID-19 pandemic; industry conditions including changes in laws and regulations and/or adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, in Canada and the United States; volatility of prices for energy commodities; change in demand for clean energy to be offered by GIP; competition; lack of availability of qualified personnel; obtaining required approvals of regulatory authorities, in Canada and the United States; ability to access sufficient capital from internal and external sources; many of which are beyond the control of GIP. Forward-looking statements included in this news release should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such forward-looking statements.
In particular, this news release contains forward-looking statements pertaining to but not limited to the following:
- GIP's expectation that the GreenGas Colorado facility produces gas at or above the expected run-rate production of 360,000 MMBtu per year
- Use of net proceeds from the private placement for continued project expenditures on Future Energy Park, and for general and administrative purposes and working capital requirements
- Timing for earthworks activities at the Future Energy Park
- Timing for closing of the Amber Infrastructure transaction
Readers are encouraged to review and carefully consider the risk factors pertaining to GIP described in the Company's annual MD&A for the year ended December 31, 2022, which is accessible on GIP's SEDAR issuer profile at www.sedar.com. The forward-looking statements contained in this release are made as of the date of this release, and except as may be expressly be required by law, GIP disclaims any intent, obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Management of GIP has included the above summary of assumptions and risks related to forward-looking statements provided in this release in order to provide shareholders with a more complete perspective on GIP's current and future operations and such information may not be appropriate for other purposes. GIP's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits GIP will derive therefrom.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/178465