MPC Caribbean Clean Energy Ltd is reporting a loss of US$40,127 for the second quarter ending June 30, 2021. This is an estimated US$3,000 more than the loss of US$36,990 reported for the same three-month period in 2020, according to the investment company’s unaudited financial results.
The company’s income was also a loss of US$120,828, higher than the US$76,198 income loss incurred last year.
Total assets grew to US$29.6 million increasing from US$19.8 million for the six-month period ending June 30,2021. This follows the signing of an agreement to acquire the Monte Plata solar park in the Dominican Republic, chairman Jose Galindo reported in his statement. The deal is expected to be completed in the third quarter.
Galindo said the solar park with a capacity of 33.4 MWp may help reduce 1.7 million tonnes of carbon emissions. There are plans to sign a power purchase agreement to expand the park’s capacity to 74 MWp in the third quarter with construction due to begin in the second quarter of 2022.
“The investment company will own indirectly, effectively 36.4 per cent of the common shares in the solar park,” said Galindo.
US$10 million is expected to be raised under a convertible note to invest in the company’s fund, he added.
Galindo said conditions such as the covid19 pandemic and weather played roles the productivity of the company’s assets.
“Commercial and technical performance of the underlying assets ... remained relatively stable and similarly to Q1 (first quarter) was negatively affected by unfortunate weather conditions, upcoming hurricane season and operational challenges due to the covid19 pandemic,” he said.
Asset operations had fluctuating performances with the Paradise Park solar park in Jamaica failing to meet its energy generation projection in the first half of 2021.
“The reason for this is the ongoing cable replacements and lower than expected solar irradiation. The cable replacements are to be completed by August 2021. The overall plant availability was above our target,” said Galindo. The Tilawind operation in Costa Rica had mixed fortunes. “The wind farm in Costa Rica experienced lower levels of wind but achieved good results and is slightly below the expected target due to high plant availability. The reduced tariffs brought on in the last quarter, effective as of February 10, 2021, weakened the results.” Galindo said the company and legal adviser are in discussions with the Costa Rica Energy Association to “assess all legal and commercial options.
He reported the San Isidro solar park in El Salvador has been underperforming and was below target but said “significant improvements in availability “ could turnaround the operations.
Given the expectations of improved performances in Jamaica, Costa Rica and El Salvador, Galindo said the company’s’ outlook was positive.
“Our outlook remains strong to deliver good results for our shareholders over the medium and long-term. In view of the ongoing pandemic, the company believes that it is well equipped for future challenges thanks to tried and tested measures.
Editor's note: This story corrects figures previously reported in millions of dollars on the company's loss for the second quarter of 2021. The error is regretted.