Altius Renewable Royalties Reports Q3 Expected Attributable Royalty Revenue(1) of $1.6 Million, Increases Guidance
Altius Renewable Royalties Corp. (TSX: ARR) (OTCQX: ATRWF) (“ARR”, the “Company”, or the “Corporation”), expects to report Q3 2022 attributable royalty revenue of $1.6 million, which compares to $0.03 million of attributable royalty revenue recorded in Q3 2021 and $0.6 million in Q2 2022. Revenue in the third quarter exceeded the total revenue for the first half of the year, driven primarily by strong summer merchant power prices. As a result, the 50% owned Great Bay Renewables (“GBR”) joint venture has increased its 2022 annual royalty revenue guidance to $6.5 – $7.0 million from the $4.5 – $5.5 million previously provided.
Frank Getman, CEO of GBR, commented, “We are pleased with the performance of our growing portfolio of diversified renewable energy royalties. We are benefitting from partial exposure in our royalty portfolio to higher than anticipated merchant power prices, particularly in Texas.” Getman added, “Three additional projects with a total capacity of 975 megawatts are expected to hit commercial operations over the next six months, thus adding to the revenue growth in 2023. In addition, with a significant portfolio of advancing development stage projects, we believe we are well positioned for continued revenue growth for the foreseeable future.”
Third Quarter Financial Results Conference Call and Webcast Details
A conference call and webcast will be held on November 8, 2022 at 10:00 am ET to provide an update and to offer an open Q&A session for analysts and investors. Access details are as follows:
Date and time: November 8, 2022, 10 am ET
Toll Free Dial-In Number: +1 888 886 7786
International Dial-In Number: +1 416 764 8658
Conference Call Title and ID: ARR Q3 2022 Results, ID 44414561
Webcast Link: Q3 2022 Financial Results
Non-GAAP Financial Measures
1Management uses the following non-GAAP financial measure in this release: attributable royalty revenue. Attributable revenue is defined by the Corporation as total revenue and other income from the condensed consolidated financial statements plus the Corporation’s proportionate share of revenue in the joint venture. Attributable royalty revenue is the portion of total revenue that derives from royalty revenue, rather than interest or other revenue. The Corporation’s key decision makers use attributable royalty revenue as a basis to evaluate the business performance. The joint venture revenue and general and administrative costs are not reported gross in the consolidated statement of (loss) since they are generated in a joint venture in accordance with IFRS 11 Joint Arrangements which requires net reporting as an equity pick up. Management uses this measure to reflect the Corporation’s economic interest in its operations prior to the application of equity accounting to help allocate financial resources and provide investors with information that it believes is useful in understanding the scope of its business, irrespective of the accounting treatment. Details of the joint venture’s operations are disclosed in Note 4 to the Corporation’s condensed consolidated financial statements.
ARR is a renewable energy royalty company whose business is to provide long-term, royalty-level investment capital to renewable power developers, operators, and originators. ARR currently has 31 renewable energy royalties representing 665 MW of renewable power on operating projects and an additional approximately 6 GW on projects in the development phase, across several regional power pools in the U.S. The Corporation also expects future royalties from GBR’s investments in Bluestar Energy Capital and Hodson Energy. The Corporation combines industry expertise with innovative, partner-focused solutions to further the growth of the renewable energy sector as it fulfills its critical role in enabling the global energy transition.
This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and ARR provides no assurance that actual events will meet management’s expectations. In certain cases, forward‐looking information may be identified by such terms as “anticipates”, “believes”, “could”, “estimates”, “expects”, “may”, “shall”, “will”, or “would”. Although ARR believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Readers should not place undue reliance on forward-looking information. ARR does not undertake to update any forward-looking information contained herein except in accordance with securities regulation.
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