Following the US$18-million sale of Paradise Park in March, MPC Caribbean Clean Energy Limited (MPCCEL) is gearing up to pay its second dividend to shareholders from the proceeds of the sale.

Paradise Park is a 51.5 MWp solar PV plant in Paradise Park, Westmoreland, which began operations in June 2019 under a 20-year power purchase agreement (PPA) with the Jamaica Public Service Company Limited (JPS). Paradise Park was owned by Eight Rivers Energy Company Limited whose ownership was split between Neoen Holdings Jamaica owning 50.01 per cent and Erec Investment Limited owning 49.99 per cent. MPCCEL owned 68.8 per cent of Erec Investment. It generated an estimated US$7.84 million in revenue during 2023 and an estimated US$6.99 million in revenue during 2024 based on it generating 72.07 GWh of energy at US$0.097 per kilowatt hour.(kWh).

InterEnergy Group, an energy company with operations across Latin America and the Caribbean, acquired Paradise Park on March 31. MPCCEL initially valued its loan to EREC Investment at US$8.65-million in September 2024 but carried it at US$5.95 million in its December 2024 audited financials.

MPCCEL received its pro-rated proceeds of the sale totalling US$5.87 million on April 10 as a repayment of a shareholder loan to Erec Investment. However, this transaction wasn’t reflected in MPCCEL’s first-quarter (January to March) results due to the company not consolidating the financials of its different investments and will instead be reflected in the second-quarter numbers.

“Looking forward, the successful sale of Paradise Park, Jamaica’s largest solar farm, represents a significant milestone in enhancing the Company’s financial health and value for its shareholders. The proceeds from this sale will be distributed to the shareholders, directly enhancing their investment returns,” stated MPCCEL Chairman Fernando Zúñiga in the quarterly report.

MPCCEL paid its only dividend of US$0.089 totalling US$1.93 million in September 2019, eight months after the company listed on the Jamaica Stock Exchange (JSE) and Trinidad and Tobago Stock Exchange (TTSE). Its renewable energy portfolio of four key assets, including Paradise Park, generated US$22.76 million in revenue during 2024 with US$16.32 million in EBITDA (earnings before interest, tax, depreciation and amortisation), US$7.01 million being the pro-rated amount relative to its ownership interest in the assets.

MPCCEL stated in a recent market disclosure, “It is intended that after providing for an appropriate liquidity reserve at the company and holding company level to cover administrative, business expenses, contingencies and to adhere to any legal restrictions, the Company intends to pay out up to 100 per cent of the remaining sales proceeds received from the sale of Paradise Park.”

MPCCEL’s annual operating expenses doubled from US$247,315 to US$580,855 during 2024 after it completed the reorganisation of its renewable energy investments from MPC Caribbean Clean Energy Fund LLC to its own books. However, the company can now benefit from the dividend income of its different renewable energy assets rather than have it pass through a managed fund which had more expenses. MPCCEL received US$585,369 in dividend income during 2024 and received US$90,318 in dividends on March 24 from MPC Renewables Central America and Caribbean, the holding company for its investment in the San Isidro solar park in El Salvador.

MPCCEL’s first quarter saw it record US$261,383 in total income, but a total comprehensive net loss of US$60,394 compared to a net profit of US$232,037. The prior year had a sizeable one-time dividend from the Cayman MPC Fund and the business had lower operating expenses prior to the reorganisation. The company intends to de-register and liquidate the Cayman entity by June.

However, the three remaining portfolio assets experienced a 10 per cent increase in EBITDA from US$2.50 million to US$2.74 million. These include a 100 per cent stake in the San Isidro solar park, a 50 per cent stake in the Tilawind wind farm in Costa Rica and a 72 per cent stake in the Monte Plata solar park in the Dominican Republic.

MPCCEL’s total assets ended the first quarter at US$33.24 million with US$26.51 million in its renewable energy investments. Total liabilities and net assets to owners was US$10.79 million and US$22.45 million, respectively. The US$10 million convertible promissory note is set to mature in March 2026 and can be converted to class B shares if the principal sum remains unpaid at maturity.

MPCCEL’s stock price closed at J$63/US$0.3999 on the JSE and US$0.98 on the TTSE. However, this is below the listing price of J$130/US$1 per share.