GREEN IMPACT PARTNERS ("GIP") ANNOUNCES INCREASE IN COLORADO RNG PRODUCTION CAPACITY AND FIRST QUARTER 2022 RESULTS
VANCOUVER, BC, May 16, 2022 /CNW/ - Green Impact Partners Inc. ("GIP" or the "Company") (TSXV: GIP.V) is pleased to provide an update on its renewable natural gas ("RNG") development projects and a summary of its first quarter 2022 results.
GreenGas Colorado RNG production update: The GreenGas Colorado Project is nearing completion on-time and in line with budgets. The Company expects commissioning to begin mid-summer with RNG production to be at full capacity in early 2023. Design enhancements completed through the construction process have resulted in an increase in the expected quantity of RNG to greater than 360,000 MMBtu per annum.
Future Energy Park: GIP continues to advance North America's largest RNG and net CO2 negative biofuels facility, Future Energy Park ("FEP"), that will use non-food grade wheat to produce RNG and ethanol. Proposed for southeast Calgary, this renewable energy infrastructure development represents a nearly $1.0 billion investment in Alberta and the City of Calgary. Once operational, FEP is expected to produce approximately 3.5 million MMBtu per annum of RNG, over 300 million litres of ethanol annually, approximately 235,000 tonnes of cattle feed annually and create saleable carbon credits.
Accelerating RNG Portfolio Development: As previously disclosed, GIP has engaged J.P. Morgan and RBC Capital Markets as lead financial advisors to help accelerate the completion of its near-term RNG portfolio, including the Iowa RNG Project and FEP. Opportunities may include a non-dilutive strategic investment in any or all of the GreenGas Colorado Project, the Iowa RNG Project or FEP. A transaction is expected to provide the capital to complete these projects and advance the development of the Company's remaining portfolio, while still maintaining majority control and significant long-term cash flow accretion for GIP's shareholders.
"The RNG sector is thriving and we are excited by the opportunity to form an accretive partnership that accelerates execution of our high quality, high impact RNG portfolio," said Jesse Douglas, Chief Executive Officer. "From construction, to regulatory, to engineering and design, GIP is on track to achieve major milestones in 2022."
(in thousands of dollars) |
March 31, 2022 Three Months (unaudited) |
March 31, 2021 Three Months (unaudited) |
IFRS FINANCIAL MEASURES |
||
Revenue |
44,787 |
27,788 |
NON-IFRS MEASURES |
||
Adjusted EBITDA1 |
1,206 |
1,306 |
1 See Non-IFRS Measures below
Revenue: Revenues increased to $44.8 million for Q1 2022 from $27.8 million in the prior year. $15.0 million of this increase was a result of increased revenue in the existing business due to favorable market conditions. An incremental $2.0 million of revenue was added with the acquisition of the US recycling business in May 2021.
Adjusted EBITDA: Adjusted EBITDA decreased over the same quarter in the prior year due to lower realized margins primarily as a result of increased input costs.
For a more detailed discussion on GIP's results for the quarter ended March 31, 2022, 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.
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 owning and operating a portfolio of RNG facilities. GIP has a growing portfolio of RNG projects under development, representing over $2 billion in anticipated capital expenditures over the next three years. In addition to RNG, we participate in a wide range of zero-carbon opportunities during all stages of the project lifecycle – from idea generation through to operations. In its pursuit of net zero earth impact, GIP is positioned to be a leading producer of decarbonized 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.
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 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.
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.
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, 2021, 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.
SOURCE Green Impact Partners Inc.
Kathy Bolton, Chief Financial Officer at (236) 476-3445 or [email protected] or visit www.greenipi.com.
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