MPC earnings wilt under La Nina conditions
Weather conditions presented by La Nina and extensive repairs at MPC Caribbean Clean Energy’s renewable energy plants resulted in its net comprehensive income decreasing in the fourth quarter, according to interim unaudited reports.
“The still noticeable La Nina phenomenon continues to impact energy production across the region and assets. On a positive note, none of the assets were affected by the weather conditions during the hurricane season; however, the expected restrictions in energy production due to rain and cloudy weather has been recorded,” MPC Chairman Fernando Zuniga told shareholders in his report.
“After three consecutive years of La Nina, which is a very rare event, experts assume that the effect shall phase out by mid-2023,” he continued.
At its Tilawind Wind Farm in Costa Rica, production levels for the fourth quarter fell 15.28 per cent below expectations with MPC Chairman Fernando Zuniga citing “poor wind conditions in the region and partial unavailability of full plant capacity due to repair process of the blades”, which was completed in October.
As a result revenues for the quarter fell 10.33 per cent below budget and 13.07 per cent year to date. Still the wind farm’s operating expenses came in lower than anticipated, but despite the savings was not enough to stop a shortfall in segment earnings.
The repair of three additional blades will continue into the second half of 2023, which is expected to be a low-wind season.
Elsewhere, MPC saw improvements in solar energy generation at the Paradise and San Isidro solar parks in Jamaica and El Salvador, respectively. With regard to the latter, the company points to replacement of inverters and favourable conditions as key reasons for the improved performance, as well as significant reduction in the plant’s operating expenses.
However, at the Monte Plata solar park in the Dominican Republic, revenues dipped by 9.26 per cent in the fourth quarter and 12.63 year to date due to lower power generation and “additional unplanned expenses”. In his outlook on the plant’s expansion, Zuniga disclosed that financial close of the project will come in Q1 2023 or early Q2.
Net comprehensive income of US$823,520 for the three months ending December 31, 2022, reflected a reduction 36.7 per cent. For the year, net comprehensive income declined by 38.6 per cent to $700,791.
Total assets increased by over $740,525 to $31.40 million as at December 2022.