CALGARY, AB, July 27, 2022 /CNW/ – Tidewater Renewables Ltd. (“Tidewater Renewables” or the “Corporation”) (TSX: LCFS) is pleased to provide a second quarter 2022 update.
The Corporation’s base business continues to outperform. Tidewater Renewables expects to generate 2022 and 2023 run rate EBITDA at the high end of the previously disclosed ranges of $50-55 million and $140-150 million, respectively. The Corporation remains optimistic about further outperformance in 2023, anchored by strong refined product fundamentals and regulatory tailwinds, following recent clarifications around the federal government’s Clean Fuel Regulation.
During the second quarter, the Corporation reached important milestones on its 3,000 bbl/d Renewable Diesel & Renewable Hydrogen Complex (the “HDRD Complex“) including the commencement and completion of various construction activities and continues to produce and sell renewable diesel and gasoline from its Canola Co-Processing Project located at the HDRD Complex. Additionally, and as previously disclosed, Tidewater Renewables entered into its inaugural multi-year sale agreement for its clean fuel regulation credits with an investment grade counterparty.
The Corporation has exceeded initial forecasts due to increased renewable diesel prices and carbon credit values. Strong business performance has driven initial second quarter 2022 net income estimates of $4–$5 million and Adjusted EBITDA estimates of $15-16 million. Full second quarter 2022 financial results are expected to be released on August 11, 2022.
ABOUT TIDEWATER RENEWABLES
Tidewater Renewables is traded on the TSX under the symbol “LCFS”. Tidewater Renewables is a multi-faceted, energy transition company. The Corporation is focused on the production of low carbon fuels, including renewable diesel, sustainable aviation fuel, renewable hydrogen, and renewable natural gas, as well as carbon capture through future initiatives. The Corporation was created in response to the growing demand for renewable fuels in North America and to capitalize on its potential to efficiently turn a wide variety of renewable feedstocks (such as tallow, used cooking oil, distillers corn oil, soybean oil, canola oil and other biomasses) into low carbon fuels. Tidewater Renewables’ objective is to become one of the leading Canadian renewable fuel producers. The Corporation is pursuing this objective through the ownership, development, and operation of clean fuels projects and related infrastructure, utilizing existing proven technologies. Organically, Tidewater Renewables will seek to leverage the existing infrastructure and engineering expertise of Tidewater Midstream and Infrastructure Ltd., its majority shareholder, regarding the development of the Corporation’s portfolio of greenfield and brownfield capital projects as well as the expansion of the Corporation’s product offerings. Additional information relating to Tidewater Renewables is available on SEDAR at www.sedar.com and at www.tidewater-renewables.com.