MPC Caribbean Clean Energy says the positive trends it is seeing in its Jamaica and El Salvador operations indicate it will have better results to report to shareholders in the second half of this year.
The Barbados-based company, which operates renewable energy plants in Jamaica, Costa Rica and El Salvador, reported US$120,828 in losses during the first six months of its financial year, which ended on June 30. The underwhelming results stem from issues the company faced at all three locations.
At its Paradise Park solar plant in Westmoreland, Jamaica, MPC Caribbean Clean Energy said it did not meet the energy generation projections in the first half of 2021 due to ongoing cable replacements at that solar park and lower than expected solar irradiation in the area. However, the company says, with the cable replacements set to be completed this month, the expectation is that the performance ratios will meet the targets again.
Paradise Park solar plant has an operational capacity of 51.5 MW. MPC Caribbean did not, however, disclose the targets for the plant.
In Costa Rica, a reduction in the electricity tariff in February weakened results from its 21-MW windfarm at Tilawind. Notwithstanding, MPC Caribbean Clean Energy said its investment company is in ongoing consultation with its legal advisor and the Costa Rican Renewable Energy Association to assess all legal and commercial options.
Low wind levels also affected that plant, but the company said it still achieved good results, albeit with electricity output falling slightly below the expected target due to high plant availability.
In El Salvador, MPC Caribbean Clean Energy said its solar plant at San Isidro is slightly underperforming with plant availability and production below target. Still, it expects a reversal of both issues.
Going forward, it says, the positive trends it sees in Jamaica and El Salvador should help to drive a turnaround, while it bemoans the impact the tariff reduction in Costa Rica will have on its bottom line.
Furthermore, it said the completion of its acquisition of the Monte Plata solar park in the Dominican Republic, before the end of September, should help with diversification and push further revenue growth. The Barbados-based company announced in June that it, along with two minority investors, had reached an agreement to take over the solar park, which has an operational capacity of 33.4 MW.
At the time, MPC did not disclose the cost of the transaction. However, along with the acquisition, it announced expansion plans that have a scheduled start sometime between April and June next year. The expansion should increase the operational capacity of the solar park to 74 MW.
The company also said it is set to get the US$10 million in capital that it raised through a convertible note during the current quarter, which ends on September 30.