Altius Renewable Royalties Reports Q2 2023 Financial Results - Seite 2

Seasonally lower merchant pricing in the current quarter and year to date partially offset the growth in the royalty portfolio. More recently, there has been an increase in merchant pricing due to warmer summer weather and increased power demand.

The Corporation’s current quarter and year to date results reflect the proportionate share of increased revenues at GBR offset by the proportionate share of increased costs including GBR’s non-cash based share of loss of approximately $1.0 million associated with its Bluestar and Nova equity investments. Bluestar and Nova are recently formed development-stage renewable energy businesses.

At June 30, 2023 the Corporation held cash of $41.1 million and has expected commitments for the remainder of 2023 of approximately $11.3 million for existing GBR investment agreements.

Commenting on the quarter, Frank Getman, CEO of GBR, said “Our royalty portfolio revenue and cash flow profile continue to benefit from the addition of operational stage royalties. While there remains robust renewables activity and tailwinds across the US resulting from the IRA and the continued energy transition, ongoing interconnection delays and higher costs of both debt and equity capital creates a strong investment climate for alternative sources of capital such as GBR’s royalty financing.”

Brian Dalton, CEO of ARR added that “GBR continues to gain portfolio scale and diversity at a pace that is exceeding the long-term goals we had set at the time of its IPO in 2021. With now more than 15 GW of development through operating stage royalty projects in the portfolio it is clear that awareness and acceptance of royalty-based funding is becoming a mainstream financing tool within the renewable energy sector. We remain poised to play an increased role in supporting the energy transition and to adding further diversity and scale to the portfolio on behalf of shareholders.”

Non-GAAP Financial Measures
1.		Management uses the following non-GAAP financial measures: proportionate royalty and other revenue (“proportionate revenue”) and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA).
2.		Management uses these measures to monitor the financial performance of the Corporation and believes these measures enable investors and analysts to compare the Corporation’s financial performance with its competitors and/or evaluate the results of its underlying business which are held primarily in jointly controlled entities. These measures are intended to provide additional information, not to replace International Financial Reporting Standards (IFRS) measures, and do not have a standard definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. As these measures do not have a standardized meaning, they may not be comparable to similar measures provided by other companies. Further information on the composition and usefulness of each non-GAAP financial measure, including reconciliation to their most directly comparable IFRS measures, is included in the non-GAAP financial measures section of our MD&A.