MPC Caribbean Clean Energy reports US$597,000 fourth-quarter earnings

MPC Caribbean Clean Energy Ltd (MPCCEL) has reported US$597,984.93 in earnings for the fourth quarter its 2021 financial year.

In its unaudited financial statements for the year ending December 31, 2021, chairman Fernando Zuniga said the commercial and technical performances of the underlying assets of its investment were within the expected range. "Necessary technical measures were carried out, thereby, stabilising the production of the underlying assets."

He said the solar park in Jamaica met expectations from the technical and commercial points of view, and production and revenues were stable and slightly above budget expectations, but operating expenses was higher by 11.9 per cent due to unscheduled maintenance.

Tilawind, the wind farm in Costa Rica, exceeded operating costs by 78.35 per cent due to postponed blade repair works, and the revenues from the low tariff period were consumed by those expenses. Some of the on this facility was postponed to 2022 because of global shortages in chemicals for sealing the blades. Zuniga said the company is currently in contact with the contractor to organise the remaining work during the low wind and low tariff phase this year.

Zuniga said, “Regarding the mentioned tariff band reduction during the first quarter of 2021 (the tariff for the high wind season has been reduced from US$118.10 /MWh to US$108.78 /MWh, which corresponds to a reduction of 7.89 per cent; the tariff for the low wind season from US$47.30 /MWh to US$43,56 /MWh, which corresponds to a reduction of 7.91 per cent).

He said discussions with the Costa Rican regulator led to the adjustment of the tariff band.

The new tariffs therefore correspond to US$115.18 /MWh for the high wind season and US$46.12 /MWh for the low wind season) as of the last quarter of 2021. However, the new tariff band is still below the initial one by approximately 2.48 per cent and leads to lower revenues through the sale of the generated electrical energy.”

MPC’s third facility, San Isidro solar park in El Salvador did not perform well due to technical issues, he said, but the lack of performance could be offset financially due to cost discipline, resulting in final earnings above the forecast of by 59.95 per cent.

Zuniga said MPC was hopeful of the future and was expecting performance improvements and further diversification of its portfolio in Monte Plata phase one solar park in the Dominican Republic.

He said the expansion of the Monte Plate asset with phase two is progressing well and financial closing with the senior lenders FMO – the Dutch development bank – and DEG – German Investment Corporation – is expected to take place in the second quarter.

The completion of the acquisition remains subject to approval, which is expected to be obtained during the first quarter.

“Start of operations of the expanded solar park with a total capacity of 74 MWp is targeted for quarter 2023. The PPA was signed on October 15, 2021, for a period of 15 years starting from commercial operation date. It will become the largest asset in the portfolio expanding the geographic footprint to a total of four countries including Jamaica, Costa Rica, El Salvador, and the Dominican Republic.”