Latest news with #TidewaterRenewables
Yahoo
11-05-2025
- Business
- Yahoo
Earnings Beat: Tidewater Renewables Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
It's been a mediocre week for Tidewater Renewables Ltd. (TSE:LCFS) shareholders, with the stock dropping 15% to CA$2.60 in the week since its latest quarterly results. Revenues of CA$58m missed analyst estimates by a little bit, but statutory earnings beat expectations by an impressive , coming in at CA$0.14 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Taking into account the latest results, the dual analysts covering Tidewater Renewables provided consensus estimates of CA$270.7m revenue in 2025, which would reflect a disturbing 27% decline over the past 12 months. Losses are predicted to fall substantially, shrinking 97% to CA$0.31. Before this latest report, the consensus had been expecting revenues of CA$278.1m and CA$0.10 per share in losses. While this year's revenue estimates dropped there was also a very substantial increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock. Check out our latest analysis for Tidewater Renewables There was no major change to the consensus price target of CA$3.90, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 35% annualised decline to the end of 2025. That is a notable change from historical growth of 97% over the last year. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Tidewater Renewables is expected to lag the wider industry. The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Tidewater Renewables. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at CA$3.90, with the latest estimates not enough to have an impact on their price targets. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Tidewater Renewables going out as far as 2027, and you can see them free on our platform here. You still need to take note of risks, for example - Tidewater Renewables has 3 warning signs (and 2 which are potentially serious) we think you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Cision Canada
08-05-2025
- Business
- Cision Canada
TIDEWATER MIDSTREAM AND INFRASTRUCTURE LTD. ANNOUNCES FIRST QUARTER 2025 RESULTS AND OPERATIONAL UPDATE
CALGARY, AB, May 8, 2025 /CNW/ - Tidewater Midstream and Infrastructure Ltd. ("Tidewater" or the "Corporation") (TSX: TWM) has filed its consolidated financial statements and Management Discussion and Analysis ("MD&A") for the first quarter ended March 31, 2025. First Quarter 2025 Highlights Consolidated net loss attributable to shareholders was $31.8 million during the first quarter of 2025, compared to $11.3 million during the first quarter of 2024. The increase in net loss attributable to shareholders was due to lower refined product sales and lower product margins offset in part by lower depreciation, interest expense, favorable changes in the fair value of derivative contracts, and higher income from equity investments Consolidated adjusted EBITDA (1) was $(3.7) million during the first quarter of 2025, compared to $39.8 million during the first quarter of 2024. The decrease in EBITDA is primarily driven by lower refined product sales and lower product margins in the first quarter of 2025, offset in part by lower losses on realized derivative contracts and higher income from equity investments. On January 10, 2025, Tidewater Renewables Ltd. ("Tidewater Renewables") completed the sale of its interest in the Rimrock Renewables Limited Partnership ("RNG LP") to Biocirc Canada Holdings Inc., an affiliate of Biocirc Group ApS for total proceeds of $7.8 million in cash, of which $4.7 million was received on close and the remaining $3.1 million could be received upon the satisfaction of certain post-closing conditions on or before December 30, 2025. The net proceeds of this transaction were used to repay outstanding indebtedness. On February 27, 2025, the Government of British Columbia announced changes to the Low Carbon Fuels Act (the "Amendments"), which increased the renewable fuel requirement for diesel from 4% to 8% for the 2025 compliance period. Effective April 1, 2025, the Amendments also require such renewable fuel content to be produced within Canada. Management views these changes as a positive development in addressing trade imbalances and supporting the economic sustainability of Tidewater Renewables, as well as the broader Canadian biofuels sector. On March 24, 2025 Tidewater closed the sale of its Brazeau River Complex and Fractionation Facility ("BRC") roadway network (the "BRC Roadway Network") for total proceeds of $24 million. Of the $24 million in total proceeds, $22.5 million was received upon closing, with the balance expected to be received on or before December 31, 2025. The $22.5 million was used to repay amounts outstanding on the Corporation's term facility component of its Senior Credit Facility (as defined herein). On March 26, 2025, with the support of its lenders, Tidewater Midstream amended the financial covenant requirements within the Fifth Amended and Restated Credit Agreement (the "Senior Credit Facility") effective January 1, 2025 until March 31, 2026, to increase the first lien senior debt to adjusted EBITDA covenant up to 4.50:1 (from 3.50:1) , and decrease the adjusted EBITDA to interest coverage ratio to 1.50:1 (from 2.50:1) during the period. These amendments will assist in providing financial flexibility as Tidewater navigates current market conditions. On March 26, 2025, Tidewater Renewables, with the support of its lenders, successfully amended its senior credit facility and second lien credit facility. The amendments provide over $15.0 million of additional capacity to the Tidewater Renewables credit facilities and extends the maturity date of the tranche B and tranche C facilities under the second lien credit facility from February 28, 2026, to October 24, 2027. The amendments also waive the requirements to comply with the quarterly financial covenants until March 31, 2026, previously waived until September 30, 2025, at which time the Tidewater Renewables will be required to maintain certain financial covenants on an annualized basis. Subsequent events On April 1, 2025, a minor fire (the "Incident") occurred in the main renewable diesel process unit at the HDRD Complex. The fire was swiftly extinguished and the impacted area was isolated and stabilized. All personnel were accounted for and no injuries were reported. Following the Incident, Tidewater Renewables conducted a thorough investigation, both independently and in cooperation with regulatory authorities. Repairs were completed promptly due to the minimal damage and the extensive inventory of spare parts Tidewater Renewables had on hand. Operations at the HDRD Complex resumed on April 14, 2025 and the Incident is not expected to have a material impact on the Corporation's results given the product inventory levels maintained at the HDRD Complex. On May 5, Tidewater entered into definitive agreements with Pembina Pipeline Corporation and certain of its affiliates (collectively, "Pembina"), through a wholly owned limited partnership, to acquire the north segment of Pembina's Western Pipeline System (the "Western Pipeline") for total cash consideration of approximately $1.2 million, as well as the assumption of certain future abandonment and reclamation obligations and liabilities estimated to be approximately $30.0 million (undiscounted value) (the "Transaction"). Tidewater expects the Transaction to yield cost improvements of approximately $10.0 million to $15.0 million annually, compared to historical metrics, while further enhancing Tidewater's ability to optimize its feedstock procurement at the Prince George Refinery ("PGR"). On May 5, 2025, Tidewater Renewables was advised that the Canadian International Trade Tribunal (the "Tribunal") had issued a decision to terminate its preliminary injury inquiry related to Tidewater Renewables' countervailing (anti-subsidy) and anti-dumping duty complaint concerning imports of renewable diesel from the U.S. which was filed by Tidewater Renewables with the Canada Border Services Agency ("CBSA") on December 30, 2024 (the "Complaint"). This decision ends the investigation initiated by the CBSA on March 6, 2025 (the "Investigation"), which originated from the Complaint. In initiating the Investigation, the CBSA determined that Tidewater Renewables had provided sufficient evidence to support its allegations that renewable diesel imported from the U.S. was subsidized and dumped, causing material injury to Tidewater Renewables and distorting Canada's renewable fuels market. The Tribunal is expected to release its reasons for the decision on May 23, 2025. Upon receipt of the Tribunal's reasons, Tidewater Renewables will assess all available options and legal remedies, including, but not limited to, promptly filing an amended or new complaint with the CBSA. On May 7, 2025, Tidewater Renewables extended the maturity date of its Senior Credit Facility from February 28, 2026, to February 28, 2027. CEO Quote: This has been a difficult quarter as a result of wider discounts on our refined product volumes and producer shut ins affecting our midstream operations. As we mentioned during our year end results conference call, we continue to progress our three key initiatives: maintaining safe and reliable operations, driving ongoing operational efficiencies, and optimizing our asset portfolio to ensure we have the right mix of assets that are generating appropriate returns. To this end, we continue to progress on non-core asset sales and will update the market as warranted. We remain focused on cash flow and improving operating results. Our recently announced transaction to acquire the Western Pipeline is expected to yield cost improvements of approximately $10.0 million to $15.0 million annually. We also expect to take advantage of steadily improving refined product margins over the course of the year resulting from the BC Government's changes to the Low Carbon Fuels Act. – Stated Jeremy Baines, CEO (1) Non-GAAP financial measures. See the "Non-GAAP Measures" section of this news release. (2) Deconsolidated results exclude the results of Tidewater Renewables. See the "Non-GAAP Measures" section of this news release for information on deconsolidated measures. (3) Capital management measure. See the "Non-GAAP Measures" section of this news release. CAPITAL EXPENDITURES (1) Supplementary financial measures. See the "Non-GAAP Measures" section of this news release. (2) During the three months ended March 31, 2025, $1.3 million of capital emission credits were monetized. (Three months ended March 31, 2024 - $2.3 million) PGR During the first quarter of 2025, throughput at the PGR was 9,936 bbl/day, 9% lower than the fourth quarter of 2024, and 20% lower than the first quarter of 2024. The decrease for both periods was largely due to third-party pipeline maintenance that decreased the volume of crude feedstock coming into the facility. Throughput was also impacted by operational and feedstock-composition adjustments that were required during the quarter to process higher-density feedstock at normal rates. Throughput is expected to return to normal levels during the second quarter. The Prince George crack spread averaged $83/bbl during the first quarter of 2025, a 11% increase from the fourth quarter of 2024 and a 6% decrease from the first quarter of 2024. The increase in crack spread from the fourth quarter of 2024 was primarily due to higher gasoline and diesel pricing, partially offset by higher feedstock costs. The decrease from the first quarter of 2024 was primarily due to higher feedstock costs partially offset by higher diesel and gasoline pricing. Gasoline and diesel sales volumes in the first quarter of 2025 decreased compared to the fourth quarter of 2024 and first quarter of 2024 due to the expiry of the offtake agreement with Cenovus Energy Inc. (the "Offtake Agreement") in the fourth quarter of 2024. Diesel and gasoline inventories built during the first quarter of 2025 are anticipated to be drawn down with the seasonal increase in demand for refined products going into the summer driving months. As previously disclosed, the Offtake Agreement expired on November 1, 2024, following which Tidewater began marketing diesel and gasoline volumes from the PGR and renewable diesel & renewable hydrogen complex owned by Tidewater Renewables (the "HDRD Complex") directly to its customers. Current wholesale discounts are wider than those at the time the Offtake Agreement was entered into, largely stemming from the oversupply of diesel in Western Canada as well as North American supply and demand fundamentals. Tidewater is working to optimize its netbacks on its diesel and gasoline. While Tidewater is focused on Western Canadian markets, in the event the Corporation is unable to place all its products in Western Canada, it may be required to export the balance to potentially lower margin markets. PGR Historical Performance: (1) Refinery yield includes crude, canola and intermediates. (2) Other refers to heavy fuel oil (HFO), liquified petroleum gas and feedstock consumed to fuel the refinery. HDRD Complex For the three months ended March 31, 2025, the HDRD Complex achieved an average utilization rate of 2,239 bbl/d, or 75%. This compares to 2,116 bbl/d, or 71% of design capacity, during the same period in the prior year, and 2,677 bbl/d or 89% of design capacity during the fourth quarter of 2024. While utilization was relatively consistent with the first quarter of 2024, the decrease from the fourth quarter of 2024 reflects softer Canadian renewable diesel demand, and inclement weather affecting rail logistics. MIDSTREAM Midstream Gas Plant Volumes (1) BRC Inlet volumes include volumes at the BRC straddle plant. (2) Other volumes include throughput at Tidewater's extraction facilities Brazeau River Complex and Fractionation Facility The BRC gas processing facility had throughput of 94 MMcf/day in the first quarter of 2025, 38 MMcf/day lower than the fourth quarter of 2024 and 40 MMcf/day lower than the first quarter of 2024. The lower throughput was primarily due to lower straddle volumes coming through the facility as a function of an outage at Plant 3 of the BRC facility ("Plant 3"), and the discontinuation of sour gas processing after the second quarter of 2024. Plant 3 of the BRC facility has been temporarily shut-down for maintenance and repairs. The repair and maintenance work is expected to be completed, and Plant 3 operational, by the end of the second quarter of 2025. The BRC fractionation facility utilization averaged 82% in the first quarter of 2025, compared to 94% in the fourth quarter of 2024 and 83% in the first quarter of 2024. Utilization was lower in the first quarter of 2025 compared to the fourth quarter of 2024 primarily due to lower recoveries of C3+ as a result of lower staddle volumes and the Plant 3 outage. Fractionation facility utilization during the first quarter of 2025 was relatively consistent with utilization during the first quarter of 2024. Utilization of the BRC fractionation facility may vary as NGL recoveries are dependent on the gas composition coming into facility. Ram River Gas Plant Tidewater Midstream has a 95% operated working interest in the Ram River Gas Plant, a rail-connected sour natural gas processing facility with sulfur handling facilities located in the Strachan region in west central Alberta. On January 7, 2025, management made the decision to temporarily lay-up the Ram River Gas Plant, including sulfur handling activities, in order to manage ongoing operating costs and to allow for gas prices to recover and gas flow from producers to resume. Management's intent is to restart the facility when commodity prices strengthen and gas flow from producers restarts. Natural gas prices are forecasted to recover during 2025 from the lows in 2024, and gas processing operations are expected to resume when producer activity restarts. Sulfur handling activities resumed at the end of March. FIRST QUARTER 2025 EARNINGS CALL In conjunction with the earnings release, Tidewater's executives will hold a call to review its first quarter 2025 results via conference call on Thursday, May 8, 2025 at 11:00 am MDT (1:00 pm EDT). To access the conference call by telephone, dial 1-437-900-0527 (local / international participant dial in) or 1-888-510-2154 (North American toll-free participant dial in). A question and answer session for analysts will follow the management's presentation. A live audio webcast of the conference call will be available by following this link: and will also be archived there for 90 days. For those accessing the call via Cision's investor website, we suggest logging in at least 15 minutes prior to the start of the live event. For those dialing in, participants should ask to join the Tidewater Midstream and Infrastructure Ltd. earnings call. ABOUT TIDEWATER MIDSTREAM Tidewater is traded on the TSX under the symbol "TWM". Tidewater's business objective is to build a diversified midstream and infrastructure company in the North American natural gas, natural gas liquids, crude oil, refined product and renewable energy value chain. Its strategy is to profitably grow and create shareholder value through the acquisition and development of conventional and renewable energy infrastructure. To achieve its business objective, Tidewater is focused on providing customers with a full service, vertically integrated value chain through the acquisition and development of energy infrastructure, including downstream facilities, natural gas processing facilities, natural gas liquids infrastructure, pipelines, railcars, export terminals, storage, and various renewable initiatives. To complement its infrastructure asset base, the Corporation also markets crude, refined products, natural gas, natural gas liquids and renewable products and services to customers across North America. Tidewater is a majority shareholder in Tidewater Renewables, a multi-faceted energy transition company focusing on the production of low carbon fuels. Tidewater Renewables' common shares are publicly traded on the TSX under the symbol "LCFS". NON-GAAP MEASURES Throughout this news release and in other materials disclosed by the Corporation, Tidewater uses a number of non-GAAP financial measures, non-GAAP financial ratios, capital management measures, and supplemental financial measures when assessing its results and measuring overall performance. The intent of these non-GAAP measures and ratios is to provide additional useful information to investors and analysts. Certain of these financial measures and ratios do not have a standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures and ratios presented by other entities. As such, these non-GAAP measures and ratios should not be considered in isolation or used as a substitute for measures and ratios of performance prepared in accordance with GAAP. Except as otherwise indicated, these financial measures will be calculated and disclosed on a consistent basis from period to period. Specific adjusting items may only be relevant in certain periods. The following are the Corporation's non-GAAP financial measures, non-GAAP ratios, capital management measures, and supplementary measures. Non-GAAP Financial Measures Consolidated and deconsolidated adjusted EBITDA Consolidated adjusted EBITDA is calculated as net (loss) income before finance costs, taxes, depreciation, share-based compensation, unrealized gains and losses on derivative contracts, transaction costs, gains and losses on the sale of assets, and other items considered non-recurring in nature plus the Corporation's proportionate share of EBITDA in its equity investments. Deconsolidated adjusted EBITDA is calculated as consolidated adjusted EBITDA less the portion of consolidated adjusted EBITDA attributable to Tidewater Renewables. In accordance with IFRS, Tidewater's jointly controlled investments are accounted for using equity accounting. Under equity accounting, net earnings from investments in equity accounted investees are recognized in a single line item in the consolidated statement of net (loss) income and comprehensive (loss) income. The adjustments made to net (loss) income, as described above, are also made to share of profit from investments in equity accounted investees. Consolidated adjusted EBITDA is used by management to set objectives, make operating and capital investment decisions, monitor debt covenants and assess performance. In addition to its use by management, Tidewater Midstream also believes consolidated adjusted EBITDA is a measure widely used by securities analysts, investors, lending institutions, and others to evaluate the financial performance of the Corporation and other companies in the midstream industry. From time to time, the Corporation issues guidance on this key measure. As a result, consolidated adjusted EBITDA is presented as a relevant measure in this news release and the MD&A to assist analysts and readers in assessing the performance of the Corporation as seen from management's perspective. In addition to reviewing consolidated adjusted EBITDA, management reviews deconsolidated adjusted EBITDA to highlight the Corporation's performance, excluding the portion of consolidated adjusted EBITDA attributable to Tidewater Renewables. Investors should be cautioned that consolidated adjusted EBITDA and deconsolidated adjusted EBITDA should not be construed as alternatives to net (loss) income, net cash provided by operating activities or other measures of financial results determined in accordance with GAAP as an indicator of the Corporation's performance and may not be comparable to companies with similar calculations. The following table reconciles net loss, the nearest GAAP measure, to adjusted EBITDA: Distributable cash flow and deconsolidated distributable cash flow attributable to shareholders Distributable cash flow is calculated as net cash provided by (used in) operating activities before changes in non-cash working capital, plus cash distributions from investments, transaction costs, non-recurring transactions, and less other expenditures that use cash from operations. Also deducted is the distributable cash flow of Tidewater Renewables that is attributed to non-controlling interest shareholders. Management believes distributable cash flow is a useful metric for investors when assessing the amount of cash flow generated from normal operations. Changes in non-cash working capital are excluded from the determination of distributable cash flow because they are primarily the result of seasonal fluctuations or other temporary changes and are generally funded with short-term debt or cash flows from operating activities. Transaction costs are added back as they can vary significantly based on the Corporation's acquisition and disposition activity. Non-recurring transactions that do not reflect Tidewater Midstream's ongoing operations are also excluded. Lease payments, interest and financing charges, and maintenance capital expenditures, including turnarounds, are deducted as they are ongoing recurring expenditures which are funded from operating cash flows. Deconsolidated distributable cash flow is calculated by subtracting the portion of Tidewater Renewables' distributable cash flow that is attributed to shareholders of Tidewater Midstream from distributable cash flow attributable to shareholders. The following table reconciles net cash used in operating activities, the nearest GAAP measure, to distributable cash flow and deconsolidated distributable cash flow: Non-GAAP Financial Ratios Tidewater uses non-GAAP financial ratios to present aspects of its financial performance or financial position, primarily distributable cash flow per share. Distributable cash flow and deconsolidated distributable cash flow per share Distributable cash flow per share is calculated as distributable cash flow attributable to shareholders divided by the basic or diluted weighted average number of common shares outstanding for the period. Deconsolidated distributable cash flow per share is calculated as deconsolidated distributable cash flow attributable to shareholders divided by the basic or diluted weighted average number of common shares outstanding for the period. Management believes that these measures provide investors an indicator of funds generated from the business that could be allocated to each shareholder's equity position. Capital Management Measures Consolidated and deconsolidated net debt Consolidated net debt is defined as bank debt, second lien debt, and convertible debentures, less cash. Consolidated net debt is used by the Corporation to monitor its capital structure and financing requirements. It is also used as a measure of the Corporation's overall financial strength. In addition to reviewing consolidated net debt, management reviews deconsolidated net debt to highlight Tidewater Midstream's financial flexibility, balance sheet strength and leverage. Deconsolidated net debt is calculated as consolidated net debt less the portion attributable to Tidewater Renewables. Consolidated and deconsolidated net debt exclude working capital, lease liabilities and derivative contracts as the Corporation monitors its capital structure based on deconsolidated net debt to deconsolidated adjusted EBITDA, consistent with its credit facility covenants as described in the LIQUIDITY AND CAPITAL RESOURCES section of the corporations MD&A. The following table reconciles consolidated and deconsolidated net debt: Supplementary Financial Measures "Growth capital" expenditures are generally defined as expenditures which are recoverable or incrementally increase cash flow or earnings potential of assets, expand the capacity of current operations or significantly extend the life of existing assets. This measure is used by the investment community to assess the extent of discretionary capital spending. "Maintenance capital" expenditures are generally defined as expenditures which support and/or maintain the current capacity, cash flow or earnings potential of existing assets without the associated benefits characteristic of growth capital expenditures. These expenditures include major inspections and overhaul costs that are required on a periodic basis. This measure is used by the investment community to assess the extent of non-discretionary capital spending. Maintenance capital is included in the calculation of distributable cash flow. Deconsolidated "net (loss) income attributable to shareholders" is comprised of net income or loss attributable to shareholders, as determined in accordance with IFRS, less the net income or loss of Tidewater Renewables attributed to the shareholders of Tidewater. Deconsolidated "net (loss) income attributable to shareholders – per share" is calculated by dividing deconsolidated "net income or loss attributable to shareholders" by the basic weighted average number of Tidewater common shares outstanding for the period. Deconsolidated "Total capital expenditures" is comprised of consolidated capital expenditures, as disclosed in Tidewater Midstream's statement of cash flows, less the capital expenditures of Tidewater Renewables. OPERATIONAL DEFINITIONS "bbl/d" means barrels per day; "MMcf/d" means million cubic feet per day. "BC LCFS Credits" are tradable certificates awarded to fuel producers, importers, or users who produce or use fuels with a carbon intensity lower than the required standard set by the British Columbia government. These credits are earned when the carbon emissions of fuel are below the established threshold, and they can be bought and sold in a market to help companies meet their regulatory obligations. The purpose of these credits is to incentivize the use of cleaner, low-carbon fuels and to help reduce the overall greenhouse gas emissions in the transportation sector. "CFR Emission Credits" means credits generated under the Canadian Clean Fuel Regulation. "crack spread" refers to the general price differential between crude oil and the petroleum products refined from it. "refinery yield" (expressed as a percentage) represents the percentage of finished product produced from inputs of crude oil and renewable feedstock as well as intermediates. Refinery yields are an important measure of refinery performance indicating the outputs that running a particular feedstock and intermediates through a refinery configuration will produce. "throughput" with respect to a natural gas plant, means inlet volumes processed (including any off-load or reprocessed volumes); with respect to a pipeline, the estimated natural gas or liquid volume transported therein; and with respect to NGL processing facilities, means the volume of inlet NGLs processed. "U.S." meaning the United States of America, its territories and possessions, any state of the United States and the District of Columbia Advisory Regarding Forward-Looking Statements Certain statements contained in this news release constitute forward-looking statements and forward-looking information (collectively referred to herein as, "forward-looking statements") within the meaning of applicable Canadian securities laws. Such forward-looking statements relate to future events, conditions or future financial performance of Tidewater based on future economic conditions and courses of action. All statements other than statements of historical fact may be forward-looking statements. Such forward-looking statements are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", "plan", "continue", "forecast", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "will likely result", "are expected to", "will continue", "is anticipated", "believes", "estimated", "intends", "plans", "projection", "outlook" and similar expressions. These statements involve known and unknown risks, assumptions, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. In particular, this news release contains forward-looking statements pertaining to but not limited to the following: the receipt of the balance of the total proceeds from the sale of Tidewater Renewables' interest in RNG LP; the expected effect of the Amendments on the emissions credit market and the broader Canadian biofuels sector; the receipt of the balance of the proceeds from the sale of the BRC Roadway Network; the effect of the amendments to the Senior Credit Facility and Tidewater Renewables' senior credit facility and second lien credit facility on the Corporation's and Tidewater Renewables' financial flexibility; requirements for the Corporation and Tidewater Renewables to maintain certain financial covenants; the expected timing of closing of the Transaction; the expected cost improvements as a result of the Transaction; the progression of the Corporation's key initiatives; the progression of non-core asset sales; the Corporation's focus on cash flow and improving operating results; expectations regarding throughput at the Corporation's facilities; expectations regarding the draw down of diesel and gasoline inventories built during the first quarter of 2025; the Corporation's efforts to optimize its netback on its diesel and gasoline; the potential requirement for the Corporation to export its products outside of Western Canada to potentially lower margin markets; the timing of completion of repair and maintenance work at Plant 3 and the return of Plant 3 to operation; variations in utilization of the BRC fractionation facility and the cause thereof; natural gas pricing expectations; expectations regarding producer activity; and the resumption of operations at the Ram River Gas Plant. Although the forward-looking statements contained in this news release are based upon assumptions which management of the Corporation believes to be reasonable, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this news release, the Corporation has assumptions regarding, but not limited to: the Corporation's ability to execute on its business plan; the effect of Tidewater Renewables' business operations on Tidewater; the timely receipt of all governmental and regulatory approvals sought by the Corporation; future commodity prices, including natural gas, crude oil, NGL and renewable energy prices; the ability of the Corporation to satisfy the conditions to closing of the Transaction; the market for BC LCFS Credits, including that such market will improve and the timing thereof; general economic and industry trends; impacts of commodity prices and demand on the Corporation's working capital requirements; continuing government support for existing policy initiatives; processing and marketing margins; impacts of seasonality and climate disruptions; future capital expenditures to be made by the Corporation; foreign currency, exchange and interest rates, and expectations relating to inflation; that there are no unforeseen events preventing the performance of contracts; the availability of equipment and personnel required for Tidewater to execute its business plan; the amount of future liabilities relating to lawsuits and environmental incidents and the availability of coverage under the Corporation's insurance policies; volume demands from the PGR and HDRD Complex are consistent with forecasts; successful negotiation and execution of agreements with counterparties; oil and gas industry exploration and development activity and the geographic region of such activity; the Corporation's ability to obtain and retain qualified staff and equipment in a timely and cost-effective manner; the amount of operating costs to be incurred; that there are no unforeseen costs relating to the facilities, not recoverable from customers; distributable cash flow and net cash provided by operating activities are consistent with expectations; the ability to obtain additional financing on satisfactory terms; the availability of capital to fund operations and future capital requirements relating to existing assets and projects; the ability of Tidewater to successfully market its products; the successful integration of acquisitions and projects into the Corporation's existing business; and the Corporation's future debt levels and the ability of the Corporation to repay its debt when due. The Corporation's actual results could differ materially from those anticipated in the forward-looking statements, as a result of numerous known and unknown risks and uncertainties and other factors including but not limited to: changes in demand for refined and renewable products; general economic, political, market and business conditions, including fluctuations in interest rates, foreign exchange rates, stock market volatility, BC LCFS Credit market volatility; supply/demand trends, armed hostilities, acts of war, terrorism, cyberattacks, trade disruptions, diplomatic developments and inflationary pressures; activities of producers and customers and overall industry activity levels; failure to negotiate and conclude any required commercial agreements; non-performance of agreements in accordance with their terms; failure to execute formal agreements with counterparties in circumstances where letters of intent or similar agreements have been executed and announced by Tidewater; the imposition of tariffs and the corresponding impact on producer activity and the supply and demand for the Corporation's products; failure to close transactions as contemplated and in accordance with negotiated terms; the conflict in Ukraine and the Middle East and the corresponding impact on supply chains and the global economy; risks of health epidemics, pandemics, public health emergencies, quarantines, and similar outbreaks, including COVID-19, which may have sustained material adverse effects on the Corporation's business financial position results of operations and/or cash flows; changes in environmental and other laws and regulations or the interpretations of such laws or regulations; cost of compliance with applicable regulatory regimes, including, but not limited to, environmental laws and regulations, including greenhouse gas emissions; Indigenous and landowner consultation requirements; climate change initiatives or policies or increased environmental regulation; that receipt of third party, regulatory, environmental and governmental approvals and consents relating to Tidewater's capital projects can be obtained on the necessary terms and in a timely manner; that the resolution of any particular legal proceedings could have an adverse effect on the Corporation's operating results or financial performance; competition for, among other things, business capital, acquisition opportunities, requests for proposals, materials, equipment, labour and skilled personnel; the ability to secure land and water, including obtaining and maintaining land access rights; operational matters, including potential hazards inherent in the Corporation's operations and the effectiveness of health, safety, environmental and integrity programs; actions by governmental authorities, including changes in regulation, tariffs and taxation; changes in operating and capital costs, including fluctuations in input costs; legal risks and environmental risks and hazards, including risks inherent in the transportation of NGLs and refining of light crude oils which may create liabilities to the Corporation in excess of the Corporation's insurance coverage, if any; actions by joint venture partners or other partners which hold interests in certain of the Corporation's assets; reliance on key relationships and agreements; losses of key customers; construction and engineering variables associated with capital projects, including the availability of contractors, engineering and construction services, accuracy of estimates and schedules, and the performance of contractors; the availability of capital on acceptable terms; changes in the credit-worthiness of counterparties; adverse claims made in respect of the Corporation's properties or assets; risks and liabilities associated with the transportation of dangerous goods and derailments; effects of weather conditions (such severe weather or catastrophic events including, but not limited to, fires, floods, lightning, earthquakes, extreme cold weather, storms or explosions); reputational risks; reliance on key personnel; technology and security risks, including cybersecurity; potential losses which would stem from any disruptions in production, including work stoppages or other labour difficulties, or disruptions in the transportation network on which the Corporation is reliant; technical and processing problems, including the availability of equipment and access to properties; changes in gas composition; and failure to realize the anticipated benefits of acquisitions. The foregoing lists are not exhaustive. Additional information on these and other factors which could affect the Corporation's operations or financial results are included in the Corporation's most recent AIF and in other documents on file with the Canadian securities regulatory authorities. Additionally, the Corporation faces certain risks as the majority shareholder of Tidewater Renewables including, without limitation, liquidity risk, commodity price risk (including in respect of the markets for BC LCFS Credits, CFR emission credits and other carbon credits, rebates, tax credits, grants and other incentives), equity risk, credit risk and risks related to changes in environmental regulations, economic, political or market conditions and the regulatory environment. Management of the Corporation has included the above summary of assumptions and risks related to forward-looking statements provided in this news release in order to provide holders of common shares in the capital of the Corporation with a more complete perspective on the Corporation's current and future operations and such information may not be appropriate for other purposes. The Corporation's actual results performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any off them do occur, what benefits the Corporation will derive therefrom. Readers are therefore cautioned that the foregoing list of important factors is not exhaustive, and they should not unduly rely on the forward-looking statements included in this news release. Tidewater Midstream does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable securities law. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Further information about factors affecting forward-looking statements and management's assumptions and analysis thereof is available in filings made by the Corporation with Canadian provincial securities commissions available on the System for Electronic Document Analysis and Retrieval ("SEDAR+") at The financial outlook information contained in this news release is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Additionally, the financial outlook information contained in this news release is subject to the risk factors described above in respect of forward-looking information generally as well as any other specific assumptions and risk factors in relation to such financial outlook noted in this news release. Accordingly, readers are cautioned that the financial outlook information contained in this news release should not be used for purposes other than for which it is disclosed herein. The financial outlook information contained in this news release was approved by management as of the date hereof and was provided for the purpose of providing further information about Tidewater's current expectations and plans for the future. SOURCE Tidewater Midstream and Infrastructure Ltd.
Cision Canada
08-05-2025
- Business
- Cision Canada
TIDEWATER RENEWABLES LTD. ANNOUNCES FIRST QUARTER 2025 RESULTS
CALGARY, AB, May 8, 2025 /CNW/ - Tidewater Renewables Ltd. (" Tidewater Renewables" or the " Corporation") (TSX: LCFS) is pleased to announce that it has filed its condensed interim consolidated financial statements and Management's Discussion and Analysis (" MD&A") for the three months ended March 31, 2025. FIRST-QUARTER HIGHLIGHTS On January 10, 2025, Tidewater Renewables completed the sale of its interest in Rimrock Renewables Limited Partnership ("RNG LP") to Biocirc Canada Holdings Inc., an affiliate of Biocirc Group ApS, for total proceeds of $7.8 million. Of this amount, $4.7 million was received upon closing and an additional $3.1 million could be received upon the satisfaction of certain post-closing conditions, on or before December 30, 2025. The proceeds from this transaction were utilized to reduce outstanding debt. On February 27, 2025, the Government of British Columbia announced modifications to the Low Carbon Fuels Act (the "Amendments"), which increased the renewable fuel requirement for diesel from 4% to 8% for the 2025 compliance period. Effective April 1, 2025, the Amendments also mandate that the renewable fuel content be produced within Canada. Management views these changes as a positive development in addressing trade imbalances and supporting the economic sustainability of Tidewater Renewables, as well as the broader Canadian biofuels sector. On March 26, 2025, the Corporation successfully amended its senior credit facility and second lien credit facility (the "Refinancing"). The Refinancing provides over $15.0 million of additional capacity to the Corporation's credit facilities and extends the maturity date of the tranche B and tranche C facilities, under the second lien credit facility, from February 28, 2026, to October 24, 2027. The Refinancing also waived the requirements for the Corporation to comply with the quarterly financial covenants under its credit facilities until March 31, 2026, previously waived until September 30, 2025, at which time the Corporation will be required to maintain certain financial covenants under its credit facilities on an annualized basis. During the first quarter of 2025, the Corporation reported net income of $5.2 million, down from $7.7 million in the first quarter of 2024, primarily due to the sale of certain co-processing assets and the termination of take-or-pay contracts in connection with the related party transaction with Tidewater Midstream and Infrastructure Ltd. in the third quarter of 2024, partially offset by unrealized gains on derivatives, higher income from the joint venture investment in Rimrock Cattle Company Ltd., and lower depreciation, financing, and deferred tax expenses. Tidewater Renewables generated Adjusted EBITDA (1) of $2.4 million during the first quarter of 2025, down from the $25.3 million generated in the first quarter of 2024. The decrease was primarily attributed to the absence of EBITDA generating assets sold to Tidewater Midstream and Infrastructure Ltd. in the third quarter of 2024. Subsequent events On April 1, 2025, a minor fire (the "Incident") occurred in the main renewable diesel process unit at the Corporation's renewable diesel & renewable hydrogen complex (the "HDRD Complex"). The fire was swiftly extinguished and the impacted area was isolated and stabilized. All personnel were accounted for and no injuries were reported. Following the Incident, the Corporation conducted a thorough investigation, both independently and in cooperation with regulatory authorities. Repairs were completed promptly due to the minimal damage and the extensive inventory of spare parts the Corporation had on hand. Operations at the HDRD Complex resumed on April 14, 2025 and the Incident is not expected to have a material impact on the Corporation's results given the product inventory levels maintained at the HDRD Complex. On May 5, 2025, Tidewater Renewables was advised that the Canadian International Trade Tribunal (the "Tribunal") had issued a decision to terminate its preliminary injury inquiry related to the Corporation's countervailing (anti-subsidy) and anti-dumping duty complaint concerning imports of renewable diesel from the U.S. which was filed by the Corporation with the Canada Border Services Agency ("CBSA") on December 30, 2024 (the "Complaint"). This decision ends the investigation initiated by the CBSA on March 6, 2025 (the "Investigation"), which originated from the Complaint. In initiating the Investigation, the CBSA determined that the Corporation had provided sufficient evidence to support its allegations that renewable diesel imported from the U.S. was subsidized and dumped, causing material injury to Tidewater Renewables and distorting Canada's renewable fuels market. The Tribunal is expected to release its reasons for the decision on May 23, 2025. Upon receipt of the Tribunal's reasons, the Corporation will assess all available options and legal remedies, including, but not limited to, promptly filing an amended or new complaint with the CBSA. On May 7, 2025, the Corporation extended the maturity date of its senior credit facility from February 28, 2026, to February 28, 2027. Selected financial and operating information are outlined below and should be read with the Corporation's condensed interim consolidated financial statements and related MD&A for the three months ended March 31, 2025, which are available under the Corporation's profile on SEDAR+ at and on its website at Financial Highlights OUTLOOK AND CORPORATE UPDATE Regulatory engagement Tidewater Renewables continues to emphasize the ongoing challenges posed by the competitive advantages enjoyed by U.S. renewable diesel producers, who benefit from U.S. subsidies at the point of production and emissions credit generation at the point of sale. Management believes these factors have created an unlevel playing field for Canadian renewable diesel producers. In response to these concerns, on February 27, 2025, the Government of British Columbia announced changes to the Low Carbon Fuels Act, which are seen by management as a positive first step toward addressing these disparities. The Amendments, which increase the renewable fuel requirement for diesel from 4% to 8% for the 2025 compliance period and, effective April 1, 2025, mandate that renewable fuel content be produced in Canada, align with Tidewater Renewables' goals of ensuring a fairer and more competitive environment for Canadian biofuels. These changes underscore the Government of British Columbia's commitment to strengthening the Canadian biofuels sector. Tidewater Renewables will continue to work with both the Governments of Canada and British Columbia to advocate for policies that promote the growth and sustainability of the Canadian renewable fuels industry. Since the announcement of the Amendments, the Corporation has observed notable increases in emissions credit value and the demand for Canadian renewable diesel. Refinancing and extension of credit facilities On March 26, 2025, the Corporation successfully executed the Refinancing, securing an additional $15.1 million in capacity for its credit facilities. The Refinancing extended the maturity date of the tranche B and tranche C facilities, under the second lien credit facility, from February 28, 2026, to October 24, 2027. The Refinancing also waived the Corporation's quarterly financial covenant requirements for an additional two quarters. The Refinancing significantly enhances Tidewater Renewables' financial flexibility and provides the additional capacity necessary to support the Corporations' ongoing financial stability. Tidewater Renewables is pleased to acknowledge the continued confidence demonstrated by its lenders, reflecting their strong support for the Corporation's long-term business strategy. Management believes this affirmation underscores the lenders' belief in the Corporation's future prospects and its ability to execute on its strategic vision, further strengthening Tidewater Renewables' financial position while facilitating its future debt reduction initiatives. As part of the Refinancing, the Corporation elected to pay in-kind the interest payment on the tranche A facility, under the second lien credit facility, that was due on April 24, 2025. This resulted in $5.1 million being added to the principal of the tranche A facility. A $3.8 million amendment fee for the Refinancing was added to the principal of the tranche B facility. On May 7, 2025, the Corporation successfully extended the maturity date of the Corporation's senior credit facility from February 28, 2026 to February 28, 2027. HDRD Complex For the three months ended March 31, 2025, the HDRD Complex achieved an average utilization rate of 2,239 bbl/d, or 75%. This compares to 2,116 bbl/d, or 71% of design capacity, during the same period in the prior year, and 2,677 bbl/d or 89% of design capacity during the fourth quarter of 2024. While utilization was relatively consistent with the first quarter of 2024, the decrease from the fourth quarter of 2024 reflects softer Canadian renewable diesel demand, and inclement weather affecting rail logistics. Tidewater Renewables expects the HDRD Complex to achieve an average throughput of between 2,200 to 2,400 bbl/d for the full year 2025, inclusive of the period when the HDRD Complex was temporarily not in operation due to the Incident and planned turnaround activity during the third quarter of 2025, supported by ongoing operational optimizations and improving market conditions. Capital Program Tidewater Renewables maintenance capital for the year is estimated to be approximately $8.0 million to $10.0 million, allocated primarily to the planned turnaround activity for the HDRD Complex in the third quarter of 2025. The planned turnaround is expected to last three weeks and have a minimal impact on sales as renewable diesel will continue to be sold from inventory during the turnaround. CONFERENCE CALL In conjunction with the earnings release, investors will have the opportunity to listen to Tidewater Renewables' senior management review its first quarter 2025 results via a conference call on Thursday, May 8, 2025 at 10:00 am MDT (12:00 pm EDT). A question and answer session for analysts will follow management's presentation. To join the conference call without operator assistance, please register here approximately 5 minutes in advance to receive an automated call-back when the session begins. Alternatively, you can dial 888-510-2154 (toll-free in North America) or 437-900-0527 to reach a live operator who will place you into the call. For those accessing the call via Cision's investor website, we suggest logging in at least 15 minutes prior to the start of the live event. For those dialing in, participants should ask to be joined into the Tidewater Renewables Ltd. earnings call. A live audio webcast of the conference call will be available here, and archived for 90 days. ABOUT TIDEWATER RENEWABLES Tidewater Renewables is an energy transition company. The Corporation is focused on the production of low carbon fuels, primarily renewable diesel. 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 a leading Canadian renewable fuel producer. The Corporation is pursuing this objective through the ownership, development, and operation of clean fuels projects and related infrastructure, that utilize existing proven technologies. Additional information relating to Tidewater Renewables is available on SEDAR+ at and at NON-GAAP AND OTHER FINANCIAL MEASURES Throughout this press release and in other materials disclosed by the Corporation, Tidewater Renewables uses a number of non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures when assessing its results and measuring overall performance. The intent of non-GAAP measures and non-GAAP ratios is to provide additional useful information to investors and analysts. These non-GAAP measures and non-GAAP ratios do not have standardized meanings prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other entities. As such, these measures should not be considered in isolation or used as a substitute for measures of performance prepared in accordance with GAAP. Except as otherwise indicated, these non-GAAP financial measures and non-GAAP ratios will be calculated and disclosed on a consistent basis from period to period. Specific adjusting items may only be relevant in certain periods. For more information with respect to the Corporation's non-GAAP measures, non-GAAP ratios, capital management measures and supplementary financial measures see the "Non-GAAP and Other Financial Measures" section of Tidewater Renewables' MD&A which is available on SEDAR+ at Non-GAAP Financial Measures The non-GAAP financial measures used by the Corporation are Adjusted EBITDA and distributable cash flow. Adjusted EBITDA Adjusted EBITDA is calculated as income (or loss) before finance costs, taxes, depreciation, share-based compensation, unrealized gains and losses on derivative contracts, transaction costs, and other items considered non-recurring in nature, plus the Corporation's proportionate share of Adjusted EBITDA in its equity investment. Adjusted EBITDA is used by management to set objectives, make operating and capital investment decisions, monitor debt covenants and assess performance. Tidewater Renewables also believes Adjusted EBITDA is a measure widely used by securities analysts, investors, lending institutions and others to evaluate the financial performance of the Corporation. From time to time, the Corporation issues guidance on this key measure. As a result, Adjusted EBITDA is presented as relevant measure in the MD&A to assist analysts and readers in assessing the performance of the Corporation as seen from management's perspective. Investors should be cautioned that Adjusted EBITDA should not be construed as an alternative to net (loss) income, net cash provided by operating activities or other measures of financial results determined in accordance with GAAP as an indicator of the Corporation's performance and may not be comparable to companies with similar calculations. The following table reconciles net loss, the nearest GAAP measure, to Adjusted EBITDA: Distributable Cash Flow Distributable cash flow is calculated as net cash provided by (used in) operating activities before changes in non-cash working capital plus transaction costs, non-recurring expenses, and after any expenditures that use cash from operations. Changes in non-cash working capital are excluded from the determination of distributable cash flow because they are primarily the result of seasonal fluctuations or other temporary changes, and are generally funded with short-term debt or cash flows from operating activities. Maintenance capital expenditures, including turnarounds, are deducted from distributable cash flow as they are ongoing recurring expenditures which are funded from operating cash flows. Transaction costs are added back as they vary significantly quarter to quarter based on the Corporation's acquisition and disposition activity. Distributable cash flow also excludes non-recurring transactions that do not reflect Tidewater Renewables' ongoing operations. Management believes distributable cash flow is a useful metric for investors when assessing the amount of cash flow generated from the Corporation's normal operations. These cash flows are relevant to the Corporation's ability to internally fund growth projects, alter its capital structure, or distribute returns to shareholders. The following table reconciles net cash provided by (used in) operating activities, the nearest GAAP measure, to distributable cash flow: Non-GAAP Financial Ratios The Corporation uses the following non-GAAP financial ratios to present aspects of its financial performance or financial position. Distributable cash flow per common share (basic and diluted) Distributable cash flow per common share is calculated as distributable cash flow, a non-GAAP financial measure, over the weighted average number of common shares outstanding for the period. Management believes that distributable cash flow per common share provides investors an indicator of funds generated from the business that could be allocated to each shareholder's equity position. Capital Management Measures Net Debt Net debt is used by the Corporation to monitor its capital structure and financing requirements. It is also used as a measure of the Corporation's overall financial strength. Net debt is defined as amounts owing under the senior credit facility and second lien credit facility, less cash. Net debt excludes working capital, lease liabilities and derivative contracts as the Corporation monitors its capital structure based on net debt to Adjusted EBITDA. The following table reconciles net debt: Supplementary Financial Measures Growth Capital Growth capital expenditures are defined as expenditures which are recoverable, incrementally increase cash flow or the earning potential of assets, expand the capacity of current operations, or significantly extend the life of existing assets. This measure can be used by investors to assess the Corporation's discretionary capital spending. Maintenance Capital Maintenance capital expenditures are generally defined as expenditures that support and/or maintain the current capacity, cash flow or earning potential of existing assets without the characteristic benefits associated with growth capital expenditures. These expenditures include major inspections and overhaul costs that are required on a periodic basis. This measure can be used by investors to assess the Corporation's non-discretionary capital spending. Forward-Looking Information Certain statements contained in this press release constitute forward-looking statements and forward-looking information (collectively referred to herein as, "forward-looking statements") within the meaning of applicable Canadian securities laws. Such forward-looking statements relate to future events, conditions or future financial performance of Tidewater Renewables based on future economic conditions and courses of action. All statements other than statements of historical fact may be forward-looking statements. Such forward-looking statements are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", "plan", "continue", "forecast", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "will likely result", "are expected to", "will continue", "is anticipated", "believes", "estimated", "intends", "plans", "projection", "outlook" and similar expressions. These statements involve known and unknown risks, assumptions, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. In particular, this press release contains forward-looking statements pertaining to, but not limited to, the following: the receipt of the balance of the total proceeds from the sale of the Corporation's interest in RNG LP; the expected effect of the Amendments on the emissions credit markets and the broader Canadian renewable fuels industry; the Corporation's requirement to comply with its quarterly financial covenants under the senior credit facility and the second lien credit facility; the effect of the Incident on the Corporation's results; expectations regarding the timing of release of the Tribunal's reasons for its decision regarding the Complaint; the Corporation's assessment of its options and legal remedies upon receipt of the Tribunal's reasons for its decision; ongoing discussions with the Governments of Canada and British Columbia regarding the regulation of the renewable fuels industry; the Corporation's pursuit of competitive fairness in the renewable diesel industry; the effect of the Refinancing on the Corporation's future prospects, its ability to execute on its strategic vision, its financial position and its ability to facilitate its future debt reduction initiatives; the Corporation's expectations of average throughput at the HDRD Complex for 2025; the timing of turnaround activities at the HDRD Complex; expectations regarding the Corporation's capital program for 2025; and the sale of renewable diesel from inventory during the turnaround at the HDRD Complex and the effect of the turnaround at the HDRD Complex on sales of renewable diesel. Although the forward-looking statements contained in this press release are based upon assumptions which management of the Corporation believes to be reasonable, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this press release, the Corporation has made assumptions regarding, but not limited to: Tidewater Renewables' ability to execute on its business plan; the timely receipt of all third party, governmental and regulatory approvals and consents sought by the Corporation; general economic and industry trends; operating assumptions relating to the Corporation's projects; expectations around level of output from the Corporation's projects, including assumptions relating to feedstock supply levels; the ownership and operation of Tidewater Renewables' business; regulatory risks; the expansion of production of renewable fuels by competitors; future commodity and renewable energy prices; sustained or growing demand for renewable fuels; the ability for the Corporation to successfully turn a wide variety of renewable feedstocks into low carbon fuels; changes in the credit-worthiness of counterparties; the Corporation's future debt levels, financial stability, future debt reduction initiatives, and its ability to repay its debt when due; the Corporation's ability to continue to satisfy the terms and conditions of its credit facilities; the continued availability of the Corporation's credit facilities; the Corporation's belief that the Refinancing underscores the lenders' belief in its future prospects and its ability to execute on its strategic vision; the Corporation's ability to obtain additional debt and/or equity financing on satisfactory terms; the Corporation's ability to manage liquidity by working with its current capital providers and other sources and through the sale of emissions credits and renewable diesel; the market, demand and pricing for emissions credits; foreign currency, exchange, inflation and interest rate risks; the availability of options and legal remedies following the release of the Tribunal's reasons for its decision; the effect of countervailing (anti-subsidy) and anti-dumping duties on the renewable diesel market and the related emission credit market; the ability of existing product inventory levels maintained at the HDRD Complex to satisfy existing demand for the Corporation's products during the period which the HDRD Complex was not in operation as a result of the Incident; the Corporation's belief that the Refinancing underscores the lenders' belief in its future prospects and its ability to execute on its strategic vision; and the other assumptions set forth in the Corporation's most recent annual information form available under the Corporation's profile on SEDAR+ at The Corporation's actual results could differ materially from those anticipated in the forward-looking statements, as a result of numerous known and unknown risks and uncertainties and other factors including, but not limited to: changes in supply and demand for, and the pricing of low carbon products and emissions credits; risks in relation to no duties being imposed or other actions taken by the CBSA and/or the Tribunal as a result of an amended or new complaint by the Corporation in connection with the importation of renewable diesel from the U.S., or such duties or actions are not imposed or taken on a timely basis; general economic, political, market and business conditions, including fluctuations in interest rates, foreign exchange rates, supply chain pressures, inflation, stock market volatility and supply/demand trends; risks and liabilities inherent in the operations related to renewable energy production and storage infrastructure assets, including the lack of operating history and risks associated with forecasting future performance; competition for, among other things, third-party capital, acquisition opportunities, requests for proposals, materials, equipment, labour and skilled personnel; risks related to the environment and changing environmental laws in relation to the operations conducted with the Corporation's capital projects; and the other risks set forth in the Corporation's most recent annual information form available under the Corporation's profile on SEDAR+ at The foregoing lists are not exhaustive. Additional information on these and other factors which could affect the Corporation's operations or financial results are set forth in the Corporation's most recent annual information form, its MD&A and in other documents on file with the Canadian Securities regulatory Administrators available under the Corporation's profile on SEDAR+ at Management of the Corporation has included the above summary of assumptions and risks related to forward-looking statements provided in this press release in order to provide holders of common shares in the capital of the Corporation with a more complete perspective on the Corporation's current and future operations and such information may not be appropriate for other purposes. The Corporation's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do occur, what benefits the Corporation will derive from them. Readers are therefore cautioned that the foregoing list of important factors is not exhaustive, and they should not unduly rely on the forward-looking statements included in this press release. Tidewater Renewables does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable securities law. All forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Further information about factors affecting forward-looking statements and management's assumptions and analysis thereof is available in the Corporation's most recent annual information form and other filings made by the Corporation with Canadian provincial securities commissions available under the Corporation's profile on SEDAR+ at The financial outlook information contained in this press release is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Additionally, the financial outlook information contained in this press release is subject to the risk factors described above in respect of forward-looking information generally as well as any other specific assumptions and risk factors in relation to such financial outlook noted in this press release. Accordingly, readers are cautioned that the financial outlook information contained in this press release should not be used for purposes other than for which it is disclosed herein. The financial outlook information contained in this press release was approved by management as of the date hereof and was provided for the purpose of providing further information about Tidewater Renewables' current expectations and plans for the future. SOURCE Tidewater Renewables Ltd.
Cision Canada
06-05-2025
- Business
- Cision Canada
THE CANADIAN INTERNATIONAL TRADE TRIBUNAL TERMINATES ITS PRELIMINARY INJURY INQUIRY IN RESPECT OF TIDEWATER RENEWABLES LTD.'S COUNTERVAILING (ANTI-SUBSIDY) AND ANTI-DUMPING DUTY COMPLAINT RELATING TO IMPORTS OF RENEWABLE DIESEL FROM THE UNITED STATES
CALGARY, AB, May 6, 2025 /CNW/ - Tidewater Renewables Ltd. ("Tidewater Renewables" or the "Corporation") (TSX: LCFS) has been advised that the Canadian International Trade Tribunal (the "Tribunal") issued a decision to terminate its preliminary injury inquiry in respect of Tidewater Renewables' countervailing (anti-subsidy) and anti-dumping duty complaint relating to imports of renewable diesel from the United States (the "Investigation"). The issuance of the Tribunal's decision ends the Investigation arising from the complaint filed by the Corporation with the Canada Border Services Agency ("CBSA") on December 30, 2024. The Tribunal is expected to release reasons for its decision on May 23, 2025. Tidewater Renewables is carefully reviewing its options in respect of the Tribunal's decision with the support of its external trade law counsel. Upon receipt of the Tribunal's reasons, the Corporation will assess all available options and legal remedies, including, but not limited to, promptly filing an amended or new complaint with the CBSA. "While we are disappointed with the Tribunal's decision, Tidewater Renewables remains committed to free and fair trade in Canada's renewable diesel market. Our view remains that the facts support a finding that unfair trade practices by the United States have caused a flood of subsidized and dumped renewable diesel into Canada. This flood of imports has significantly injured Tidewater, currently the sole Canadian producer of renewable diesel", said Jeremy Baines, Chief Executive Officer of Tidewater Renewables. ABOUT TIDEWATER RENEWABLES Tidewater Renewables is a multi-faceted, energy transition company. The Corporation is focused on the production of low carbon fuels, including renewable diesel. 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 a leading Canadian renewable fuel producer. The Corporation is pursuing this objective through the ownership, development, and operation of clean fuels projects and related infrastructure, that utilize existing proven technologies. Additional information relating to Tidewater Renewables is available on SEDAR+ at and at CAUTION REGARDING FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "intend", "project", "would", "could", "should", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes the expectations reflected in the forward-looking statements used herein are reasonable, but no assurance can be given that these expectations will prove to be correct, and such forward-looking statements included in this press release should not be unduly relied on. In particular, this press release contains forward-looking statements concerning the timing of release of the Tribunal's reasons for its decision; the Corporation's assessment of its options and legal remedies; Tidewater Renewables' commitment to free and fair trade in Canada's renewable diesel market; and the Corporation's view of the effect of countervailing (anti-subsidy) and anti-dumping duties on the renewable diesel market and its related emission credits. Although the forward-looking statements contained in this press release are based upon assumptions which management of the Corporation believes to be reasonable, the Corporation cannot assure shareholders, investors or other parties that actual results will be consistent with these forward-looking statements. Any forward-looking statements contained in this press release represent expectations as of the date of this press release and are subject to change after such date. However, the Corporation is under no obligation (and the Corporation expressly disclaims any such obligation) to update or alter any statements containing forward-looking information, the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. With respect to the forward-looking statements contained in this press release, the Corporation has made assumptions regarding the availability of options and legal remedies following the release of the Tribunal's reasons for its decision and the effect of countervailing (anti-subsidy) and anti-dumping duties on the renewable diesel market and the related emission credit market. In addition, the Corporation is subject to a number of risks and uncertainties, many of which are beyond the Corporation's control. Such risks and uncertainties include the factors discussed under "Risk Factors" in the Corporation's annual information form for the year ended December 31, 2024 and its most recent management's discussion and analysis. In addition, if no duties or other actions are ultimately taken by the CBSA and/or the Tribunal as a result of an amended or new complaint or such duties or actions are not imposed or taken on a timely basis, this could have a significant adverse impact on the Corporation's business and objectives. All the forward-looking statements in this press release are qualified by the cautionary statements herein. Further information about factors affecting forward-looking statements and management's assumptions and analysis thereof is available in filings made by the Corporation with Canadian securities commissions available on SEDAR+ at
Yahoo
02-04-2025
- Business
- Yahoo
TIDEWATER RENEWABLES LTD. REPORTS FIRE INCIDENT AT ITS RENEWABLE DIESEL REFINERY
CALGARY, AB, April 1, 2025 /CNW/ - Tidewater Renewables Ltd. ("Tidewater Renewables" or the "Corporation") (TSX: LCFS) reports that, at approximately 9:00 a.m. (MST) on April 1, 2025, there was a minor fire (the "Incident") in the main renewable diesel process unit at the Corporation's renewable diesel refinery (the "HDRD Complex") located in Prince George, British Columbia. The Incident has been extinguished and the impacted area of the HDRD Complex has been isolated and stabilized. The Corporation confirms that all personnel are accounted for and no injuries have been reported at this time. The Corporation continues to investigate the Incident, both on its own behalf and in cooperation with the applicable regulatory authorities. While the investigation is in its early stages, Tidewater Renewables is encouraged by the seemingly low level of damage resulting from the Incident. The Corporation maintains a full suite of spare parts at the HDRD Complex and should be in a position to rectify the damage and complete the appropriate testing and analysis required to safely bring the HDRD Complex back online in short order. Given the product inventory levels maintained at the HDRD Complex, the outage is not expected to have a material impact on Tidewater Renewables' operating and financial results (assuming the resumption of operations as expected). Tidewater Renewables will provide more information as the investigation into the Incident progresses if any new information comes to light. ABOUT TIDEWATER RENEWABLES Tidewater Renewables is a multi-faceted, energy transition company. The Corporation is focused on the production of low carbon fuels, including renewable diesel. 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 a leading Canadian renewable fuel producer. The Corporation is pursuing this objective through the ownership, development, and operation of clean fuels projects and related infrastructure, that utilize existing proven technologies. Additional information relating to Tidewater Renewables is available on SEDAR+ at and at CAUTION REGARDING FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "intend", "project", "would", "could", "should", "believe" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes the expectations reflected in the forward-looking statements used herein are reasonable, but no assurance can be given that these expectations will prove to be correct, and such forward-looking statements included in this press release should not be unduly relied on. In particular, this press release contains forward-looking statements concerning the results of the investigation of the Incident, the level of damage resulting from the Incident, the sufficiency of the Corporation's spare parts inventory to rectify the damage resulting from the Incident, the timing of rectifying the damage resulting from the Incident and completing the appropriate testing and analysis required to safely bring the HDRD Complex back online, the length of the outage at the HDRD Complex as a result of the Incident, and the impact on Tidewater Renewables' operating and financial results. Although the forward-looking statements contained in this press release are based upon assumptions which management of the Corporation believes to be reasonable, the Corporation cannot assure shareholders, investors or other parties that actual results will be consistent with these forward-looking statements. Any forward-looking statements contained in this press release represent expectations as of the date of this press release and are subject to change after such date. However, the Corporation is under no obligation (and the Corporation expressly disclaims any such obligation) to update or alter any statements containing forward-looking information, the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law. With respect to the forward-looking statements contained in this press release, the Corporation has made assumptions regarding the impact of the Incident on the HDRD Complex, the extent of the damage resulting from the Incident, the nature of the damage resulting from the Incident, and the resumption of operations at the HDRD Complex in short order. In addition, the Corporation is subject to a number of risks and uncertainties, many of which are beyond the Corporation's control. Such risks and uncertainties include the factors discussed under "Risk Factors" in the Corporation's annual information form for the year ended December 31, 2024 and its most recent management's discussion and analysis. All the forward-looking statements in this press release are qualified by the cautionary statements herein. Further information about factors affecting forward-looking statements and management's assumptions and analysis thereof is available in filings made by the Corporation with Canadian securities commissions available on SEDAR+ at SOURCE Tidewater Renewables Ltd. View original content to download multimedia: Sign in to access your portfolio
