TIDEWATER RENEWABLES LTD. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 RESULTS, OPERATIONAL UPDATE AND 2026 GUIDANCE

Executive Summary

• Tidewater Renewables reported Q4 2025 net loss of C$13.8 M and FY 2025 net income of C$3.5 M, a turnaround from the prior‑year loss of C$357.9 M.
• Adjusted EBITDA for 2025 was C$25.8 M (down 65% YoY) while 2026 guidance projects Adjusted EBITDA of C$80–90 M with accelerated debt reduction.
• The company secured a C$15 M increase in credit facility capacity, submitted its application for the C$370 M BioFuels Production Incentive (BPI), and hedged ~50% of 2026 renewable diesel sales.

Key Details

• Q4 2025 Financials
• Net loss: C$13.8 M vs. C$3.4 M loss in Q4 2024.
• Adjusted EBITDA: –C$3.8 M (163% decline YoY).

• Revenue: C$54.7 M (down from C$76.4 M).

• FY 2025 Financials

• Net income: C$3.5 M vs. loss of C$357.9 M in 2024.
• Adjusted EBITDA: C$25.8 M (down 65% YoY).
• Revenue: C$248.0 M (down from C$426.5 M).

• Net debt at year‑end: C$206.2 M (up from C$195.9 M).

• Operational Performance

• HDRD Complex average utilization Q4 2025: 1,453 bbl/d (48% of design); FY 2025: 1,967 bbl/d (66%).

• Completed scheduled turnaround and equipment repairs; utilization expected near name‑plate capacity in 2026.

• Financing Amendment

• March 26 2025 amendment added >C$15 M of borrowing capacity and extended second‑lien tranche maturities to Oct 24 2027.

• Waiver of quarterly covenants extended to Mar 31 2026; thereafter covenants will be annualized.

• SAF Project Milestones

• Front‑end engineering design completed Q2 2025.

• Amended Initiative Agreement (Sept 2025) provides additional BC LCFS credits for SAF optimization.

• 2026 Guidance

• Adjusted EBITDA: C$80–90 M (≈C$54.2–64.2 M increase YoY).
• Sales volume: 150–170 million L/yr of renewable diesel.

• Capital expenditures: C$2.0–3.0 M (incl. growth & maintenance, net of emission credit offsets).

• BioFuels Production Incentive (BPI)

• Application submitted Jan 2026 for program offering up to $0.16/L incentive on first 170 M L/yr and $0.10/L on next 130 M L/yr.

• Expected cash proceeds: C$24–27.2 M annually in 2026 & 2027, paid quarterly in arrears.

• Derivatives Hedging

• Post‑year‑end contracts hedge ~50% of April–Dec 2026 renewable diesel sales and associated feedstock purchases to lock gross margin and reduce price volatility.

• Regulatory Landscape

• BC Low Carbon Fuels Act amendment (Feb 27 2025) raised renewable diesel content requirement from 4% to 8%.

• Federal government considering amendments to Clean Fuel Regulations: “Minimum Domestic Content” and “Credit Multiplier” approaches, both favorable to domestic producers.

• Capital Program

• Maintenance capital FY 2025: C$9.2 M (within guidance range of C$8–10 M).

• Conference Call

• Earnings call scheduled for Thu Mar 26 2026 at 10:00 am MDT (12:00 pm EDT); joint with controlling shareholder Tidewater Midstream & Infrastructure Ltd.

Notable Quotes

“Our 2026 guidance reflects an accelerated deleveraging strategy and a robust cash‑flow generation profile that will strengthen our balance sheet and deliver long‑term shareholder value.” – Jeremy Baines, CEO

“The BioFuels Production Incentive represents a pivotal source of non‑repayable support that will materially enhance our liquidity and profitability over the incentive period.” – Ian Quartly, CFO