Revolve Announces Q2 2023 Financial Results
Vancouver, BC, February 28, 2023 – Revolve Renewable Power Corp. (TSXV:REVV) (“Revolve” or the “Company”) an owner, operator and developer of renewable energy projects, is pleased to announce its unaudited financial and operating results for the quarter and six months ending December 31, 2022 (Q2 FY2023). All amounts reported are in US dollars.
In Q2 FY2023 the Company continued to make strong progress in both its utility scale development and Distributed Generation (or “DG”) business units. As at the quarter end the Company had an operational DG portfolio of 2.85MW, DG projects under construction of 6.2MW and utility scale projects under development of 3,600MW.
Key business and financial highlights for Q2 FY2023 included:
- Renewable energy generation for the quarter was 492,563kWh and 675,211kWh for the six months ending December 31, 2022. This represents the Company’s first full quarter of energy generation since the completion of the acquisition of the Centrica Business Solutions Mexico portfolio in August 2022. We expect further optimization of these assets over the coming months.
- Distributed Generation assets under construction of 6.2MW consisting of a 3MW CHP (or “combined heat and power”) project and a 3.2MWh battery storage project. These are both expected to be commissioned and revenue generating during Q3 FY2023.
- Distributed Generation project pipeline of 65.8MW consisting of a wide range of new rooftop solar, battery storage and CHP opportunities with industrial customers across a number of different industries. As at the date of this release this pipeline has increased to 71.8MW, which the Company is working to convert into signed power purchase agreements / projects under construction in the short term.
- Utility scale projects under development of 3,600MW as at the 31 December 2022, which has since been reduced to 2,350MW as at the date of this release following the successful sale of the Bouse Solar & Storage and Parker Solar & Storage projects to ENGIE on January 11, 2023 (https://revolve-renewablepower.com/revolve-announces-sale-of-1250mw-of-utility-scale-solar-and-storage-projects). The ENGIE transaction included an upfront payment of US$2m to the Company, which will be reflected in our Q3 FY2023 financial results. Further milestone payments are expected to be received during the calendar year 2023. The completion of this transaction brings the total revenue generated by the utility scale development business to over US$19m since the Company was founded.
- Energy Generation Revenue from the Company’s portfolio of operating distributed generation assets was US$124,339 with a cost of sales of US$26,506 resulting in a gross profit of US$97,833for the six month period ended December 31, 2022, an increase of 405% from revenues of US$24,576 reported in the first quarter.
- The Company completed a project financing facility with RE Royalties for C$1.86m (secured loan and royalty agreement) which was partly used to fund the Company’s 3.2MWh BESS project in Cancun which is expected to be in operation during the next quarter (https://revolve-renewablepower.com/revolve-provides-update-on-its-3-2mwh-bess-project-in-cancun-mexico/).
- Cash on balance sheet as at December 31, 2022 was US$1,140,492, which has since been supplemented by the US$2m upfront payment received from ENGIE as outlined above.
Full Financial Statements and Management Discussion and Analysis can be found on the Company’s website (https://revolve-renewablepower.com/financials/).
Steve Dalton, CEO, commented, “Our Q2 FY2023 results provide shareholders and new investors with a clear view of our business model in action. We now have a base of operating assets generating recurring revenue, new assets under construction to add to this revenue base and a utility scale development strategy that has delivered another significant transaction with a global utility company. We remain excited by the pipeline of new projects that the Company is continuing to advance both in the distributed generation and utility scale markets and we look forward to updating shareholders on these in due course.”
Revolve was formed in 2012 to capitalize on the growing global demand for renewable power. Revolve develops utility-scale wind, solar and battery storage projects in the US and Mexico with a portfolio of approx. 2,350MW under development. The Company has a second division, Revolve Renewable Business Solutions, which installs and operates sub 20MW “behind the meter” distributed generation (or “DG”) assets. Revolve Renewable Business Solutions currently has an operating portfolio of 2.85MW with an additional 6.2MW under construction phase.
Revolve has an accomplished management team with a demonstrated track record of taking projects from “greenfield” through to “ready to build” (or “RTB”) status and successfully concluding project sales to large operators of utility-scale renewable energy projects. To-date, Revolve has developed and sold over 300MW of projects.
Going forward, Revolve is targeting 5,000MW of utility-scale projects under development in the US and Mexico, and in parallel is rapidly growing its portfolio of revenue-generating DG (distributed generation) assets.
For further information contact:
Steve Dalton, CEO
VP, Corporate Development & Investor Relations
Phone: +1 778-885-5550
Forward Looking Information
Although Revolve believes, considering the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because Revolve can give no assurance that they will prove to be correct. When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include information relating to the business plans of Revolve and Revolve’s management’s expectation on the growth and performance of its business in the United States and Mexico, including the planned MW capacity of its projects; its expansion into the distributed generation market; potential opportunities in the distributed generation market; the completion and timing of the development of its planned portfolio of distributed generation projects; the completion of the Transaction, including final approval of the transaction by the TSXV; potential revenues and cashflows generated from its DG division; and the Company’s plans to develop, construct and finance rooftop solar, battery storage and energy efficiency projects of up to 5MW and enter into long term power purchase agreements for the sale of electricity from the projects with the underlying customers. Such statements and information reflect the current view of Revolve and/or Revolve, respectively.
The forward-looking statements contained in this news release are based on current expectations, estimates, projections and assumptions, having regard to the Company’s experience and its perception of historical trends, and includes, but is not limited to, expectations, estimates, projections and assumptions relating to the extent of regulations pertaining to the Company’s projects and Revolve’s ability to continue as going concern. Risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information, including but not limited to: the effects of weather, catastrophes and public health crises, including COVID-19; labour availability; disruptions to the Company’s supply chains; changes to regulatory environment, including interpretation of production tax credits; armed hostilities and geopolitical conflicts; failure to obtain necessary regulatory approvals in a timely fashion, or at all; risks related to the development and potential development of the Company’s projects; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; the availability of tax incentives in connection with the development of renewable energy projects and the sale of electrical energy; as well as those factors discussed in the sections relating to risk factors discussed in the Company’s continuous disclosure filings on SEDAR. Such statements and information reflect the current view of Revolve. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
The forward-looking information contained in this press release represents the expectations of Revolve as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Revolve does not undertake to update this information at any particular time except as required in accordance with applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.