CALGARY,
AB, July 27, 2022 /CNW/ - Tidewater Renewables
Ltd. ("Tidewater Renewables" or the "Corporation") (TSX: LCFS) is
pleased to provide a second quarter 2022 update.
The Corporation's base business continues to outperform.
Tidewater Renewables expects to generate 2022 and 2023 run rate
EBITDA at the high end of the previously disclosed ranges of
$50-55 million and $140-150 million, respectively. The Corporation
remains optimistic about further outperformance in 2023, anchored
by strong refined product fundamentals and regulatory tailwinds,
following recent clarifications around the federal government's
Clean Fuel Regulation.
During the second quarter, the Corporation reached important
milestones on its 3,000 bbl/d Renewable Diesel & Renewable
Hydrogen Complex (the "HDRD Complex") including the
commencement and completion of various construction activities and
continues to produce and sell renewable diesel and gasoline from
its Canola Co-Processing Project located at the HDRD Complex.
Additionally, and as previously disclosed, Tidewater Renewables
entered into its inaugural multi-year sale agreement for its clean
fuel regulation credits with an investment grade counterparty.
The Corporation has exceeded initial forecasts due to increased
renewable diesel prices and carbon credit values. Strong
business performance has driven initial second quarter 2022 net
income estimates of $4-$5 million and Adjusted EBITDA estimates of
$15-16 million. Full second
quarter 2022 financial results are expected to be released on
August 11, 2022.
ABOUT TIDEWATER RENEWABLES
Tidewater Renewables is traded on the TSX under the symbol
"LCFS". Tidewater Renewables is a multi-faceted, energy transition
company. The Corporation is focused on the production of low
carbon fuels, including renewable diesel, sustainable aviation
fuel, renewable hydrogen, and renewable natural gas, as well as
carbon capture through future initiatives. The Corporation
was created in response to the growing demand for renewable fuels
in North America and to capitalize
on its potential to efficiently turn a wide variety of renewable
feedstocks (such as tallow, used cooking oil, distillers corn oil,
soybean oil, canola oil and other biomasses) into low carbon
fuels. Tidewater Renewables' objective is to become one of
the leading Canadian renewable fuel producers. The
Corporation is pursuing this objective through the ownership,
development, and operation of clean fuels projects and related
infrastructure, utilizing existing proven technologies.
Organically, Tidewater Renewables will seek to leverage the
existing infrastructure and engineering expertise of Tidewater
Midstream and Infrastructure Ltd., its majority shareholder,
regarding the development of the Corporation's portfolio of
greenfield and brownfield capital projects as well as the expansion
of the Corporation's product offerings. Additional
information relating to Tidewater Renewables is available on SEDAR
at www.sedar.com and at www.tidewater-renewables.com.
Forward-Looking Information
This news release contains forward-looking statements and
forward-looking information (collectively, "forward-looking
statements") that relate to the Corporation's current expectations
and views of future events. These forward-looking statements
relate to future events or the Corporation's future
performance. Any statements that express, or involve
discussions as to, expectations, beliefs, plans, objectives,
assumption or future events or performance (often, but not always,
through the use of words or phrases such as "will likely result",
"are expected to", "expects", "will continue", "is anticipated",
"anticipates", "believes", "estimated", "intends", "plans",
"forecast", "projection", "strategy", "objective" and "outlook")
are not historical facts and may be forward -looking statements and
may involve estimates, assumptions and uncertainties which could
cause actual results or outcomes to differ materially from those
expressed in such forward-looking statements. No assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this new release should not
be unduly relied upon. These statements speak only as of the
date of this new release. In particular and without
limitation, this news release contains forward-looking statements
pertaining to Tidewater Renewables' business as described under the
heading "About Tidewater Renewables" above; the expected financial
performance of the Corporation's proposed capital projects and
assets following the commencement of operations, including
underlying assumptions; estimates of EBITDA and run rate EBITDA;
guidance with respect to forecasted net income and Adjusted EBITDA
and expected growth related thereto; and the expected Adjusted
EBITDA to the Corporation from the HDRD Complex.
Forward-looking information is based on a number of assumptions
and is subject to a number of risks and uncertainties, many of
which are beyond the Corporation's control, which could cause
actual results and events to differ materially from those that are
disclosed in or implied by such forward-looking information.
Such risks and uncertainties include, but are not limited to, the
factors discussed under "Risk Factors" in the Corporation's
supplemented PREP prospectus dated August
12, 2021, filed on SEDAR. Tidewater Renewables does
not undertake any obligation to update such forward-looking
information, whether as a result of new information, future events
or otherwise, except as expressly required by applicable laws.
Non-GAAP Measures
Throughout this press release and in other materials disclosed
by the Corporation, Tidewater Renewables uses a number of financial
measures when assessing its results and measuring overall
performance. The intent of non-GAAP measures and ratios is to
provide additional useful information to investors and analysts.
Certain of these financial measures do not have a standardized
meaning prescribed by GAAP and are therefore unlikely to be
comparable to similar measures presented by other entities. As
such, these measures should not be considered in isolation or used
as a substitute for measures of performance prepared in accordance
with GAAP. For more information with respect to financial measures
which have not been defined by GAAP, including reconciliations to
the closest comparable GAAP measure, see the "Non-GAAP Measures"
section of Tidewater Renewables' most recent MD&A which is
available on SEDAR.
Adjusted EBITDA
"Adjusted EBITDA" is calculated as income (or loss) before
finance costs, taxes, depreciation, share-based compensation,
unrealized gains/losses on derivative contracts, non-cash items,
transaction costs, lease payments under IFRS 16 Leases and
other items considered non-recurring in nature plus the
Corporation's proportionate share of EBITDA in their equity
investments. Adjusted EBITDA is used by management to set
objectives, make operating and capital investment decisions,
monitor debt covenants, and assess performance. In addition to its
use by management, Tidewater Renewables also believes consolidated
Adjusted EBITDA is a measure widely used by securities analysts,
investors, lending institutions, and others to evaluate the
financial performance of the Corporation and other companies in the
midstream industry. The Corporation issues guidance on this key
measure. As a result, Adjusted EBITDA is presented as a relevant
measure in the MD&A to assist analysts and readers in assessing
the performance of the Corporation as seen from management's
perspective.
Run Rate EBITDA
"Run rate EBITDA" is defined as the expected EBITDA to be
generated by a specific asset or specific growth project
corresponding to a full year of operations at full capacity. Run
rate EBITDA excludes non-cash items including stock-based
compensation. The calculation of run rate EBITDA is based in
certain estimates and assumptions and should not be regarded as a
representation by the Corporation or any other person that the
Corporation will achieve such operating results. Prospective
investors should not place undue reliance on the Corporation's run
rate EBITDA and should make their own independent assessment of the
Corporation's future results or operations, cash flows and
financial condition.
SOURCE Tidewater Renewables Ltd.