Calgary, Alberta–(Newsfile Corp. – May 23, 2023) – Green Impact Partners Inc. (TSXV: GIP) (“GIP” or the “Company”) today reported its results for the quarter ended March 31, 2023 and key achievements.
Key Highlights and Achievements
Executed $545 Million Strategic Partnering Agreement: As previously announced, during the first quarter of 2023, GIP selected Amber Infrastructure Group as a strategic partner to advance the Company’s current and future projects. In February 2023, the Company closed the first part of this transaction with the sale of a 50% interest in its GreenGas Colorado renewable natural gas (“RNG”) project (“GreenGas”) for total proceeds of $59 million. This partnership provides greater financing certainty to continue advancing GIP’s pipeline of projects to execution and demonstrates the immense value still to be realized by the Company’s shareholders.
GreenGas Colorado RNG facility achieves first natural gas production: GreenGas started producing first gas during the first quarter of 2023 and the Company is completing final commissioning activities. Commercial operations at full plant capacity are expected by mid-year 2023.
Finalizing agreements and contracts for Iowa RNG: GIP has advanced the permits, approvals, and stakeholder consultation necessary to begin construction of the project. The Company is in the process of finalizing its EPC agreement, final capital cost estimates, and remaining definitive agreements.
Future Energy Park (“FEP”) advances towards construction in 2023: FEP, North America’s largest carbon negative RNG project, continues to advance to begin construction in 2023. During the first quarter of 2023, the project received its final Land Use Approval from the City of Calgary and, subsequent to quarter end, FEP received its Water Act Approval from Alberta Environment and Protected Areas. Remaining permits and approvals are anticipated in the coming months. With engineering significantly advanced, the Company is focused on finalizing commercial contracts and closing debt financing, which is anticipated this fall.
“With the vast majority of development work now in the final stages for the Future Energy Park, we are preparing ourselves for the start of construction of this exciting project which connects Alberta’s energy and agriculture sectors,” said Jesse Douglas, Chief Executive Officer. “Beyond our near-term project portfolio, our team continues to identify impressive opportunities across North America where we can deploy our ingenuity and creativity to advance our mission of converting waste to energy to create a sustainable future.”
|(in thousands of dollars)||March 31, 2023
|March 31, 2022
|IFRS FINANCIAL MEASURES|
1 See Non-IFRS Measures below
Revenue: Revenues were $38.5 million in Q1 2023 versus $44.8 million in Q1 2022 mainly due to lower average pricing of the underlying commodities sold.
Adjusted EBITDA: Adjusted EBITDA decreased by $2.3 million in Q1 2023 compared to the same period in 2022 due to increased expenses as the Company scaled its team to build out the over $3 Billion in projects in its current project portfolio as well as upward cost pressure quarter over quarter.
For a more detailed discussion on GIP’s results for the three months ended March 31, 2023, please see the Company’s financial statements and management’s discussion & analysis, 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 by developing clean energy, with a near term focus on RNG projects. 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 any stage of the project lifecycle – from idea generation through to operations. GIP has a growing portfolio of RNG projects under development, representing over $2 billion in capital expenditures over the next three years. 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.V. For more information about GIP and its projects, visit www.greenipi.com.
The Non-IFRS financial measures used within this news release by the Company are EBITDA and Adjusted EBITDA. 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. EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures provided by other companies. Management believes EBITDA is an important performance metric that measures normalized 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. Except as otherwise indicated, these financial measures will be calculated and disclosed on a consistent basis from period to period. For more information with respect to such financial measures, see the “Summary of Non-IFRS Measures” section of GIP’s most recent MD&A which is available on SEDAR at www.sedar.com.
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”, “targets”, “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, the ongoing COVID-19 pandemic and related secondary impacts, such as supply chain issues; 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; failure to negotiate and conclude any required commercial agreements; non-performance of agreements in accordance with their terms; 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, based upon assumptions which management of the Company believes to be reasonable, pertaining to but not limited to the following: ramp up of production of GreenGas Colorado; construction and closing of FEP as it relates to the Strategic Partnering Agreement; construction schedule and timeline for Iowa RNG; budgets, including future capital, operating or other expenditures and projected costs; the Company’s ability to execute on its business plan.
Readers are encouraged to review and carefully consider the risk factors pertaining to GIP described in the filing statement of GIP dated May 17, 2021, and 2022 year end MD&A which are 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.
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