TIDEWATER RENEWABLES LTD. ANNOUNCES SECOND QUARTER 2025 RESULTS

Executive Summary

• Tidewater Renewables reported second-quarter 2025 net income of $13.0 million (CAD), representing a 165% increase year-over-year and a 150% increase quarter-over-quarter.
• The company secured contracted offtakes for over 70% of its forecasted production for the second half of 2025, with pricing aligned to U.S. import parity benchmarks, while increasing its senior credit facility capacity by $7.0 million.
• Operational updates include a decrease in HDRD Complex utilization to 72% due to an April fire, the termination of a trade injury inquiry regarding U.S. renewable diesel imports, and progress on the Sustainable Aviation Fuel (SAF) project with increased BC LCFS credit support.

Key Details

• Financial Performance (Three Months Ended June 30, 2025):
  • Net Income: $13,034,000 (vs. $4,935,000 in Q2 2024).
  • Net Income Per Share (Basic): $0.36 (vs. $0.14 in Q2 2024).
  • Adjusted EBITDA: $10,713,000 (vs. $29,570,000 in Q2 2024; a 63% decrease YoY, but a 338% increase QoQ).
  • Net Cash Provided by Operating Activities: $18,286,000.
  • Distributable Cash Flow: $788,000 (vs. $20,326,000 in Q2 2024).
  • Distributable Cash Flow Per Share (Basic): $0.02.
• Financial Performance (Six Months Ended June 30, 2025):
  • Net Income: $18,281,000 (vs. $12,655,000 in H1 2024).
  • Adjusted EBITDA: $13,159,000 (vs. $58,840,000 in H1 2024).
  • Distributable Cash Flow: $(3,999,000).
• Balance Sheet & Capital Structure:
  • Total Assets: $397,218,000.
  • Net Debt: $198,759,000 (down from $316,387,000 in Q2 2024).
  • Senior Credit Facility Maturity: Extended to February 28, 2027 (from February 28, 2026).
  • Credit Facility Capacity: Increased by $7.0 million.
• Operational Metrics (HDRD Complex):
  • Q2 2025 Average Utilization: 2,164 bbl/d (72% of design capacity), down from 2,925 bbl/d (98%) in Q2 2024.
  • H1 2025 Average Utilization: 2,201 bbl/d (73% of design capacity), down from 2,520 bbl/d (84%) in H1 2024.
  • Utilization decline attributed to a minor fire on April 1, 2025, which caused a temporary suspension; operations resumed April 14, 2025.
  • Full Year 2025 Guidance: Average throughput expected between 2,200 to 2,400 bbl/d.
• Commercial & Regulatory Updates:
  • Offtakes: Secured contracts for >70% of H2 2025 forecasted production; remaining volume sold into spot market.
  • Trade Action: Canadian International Trade Tribunal terminated its preliminary injury inquiry into U.S. renewable diesel imports on May 5, 2025. The company is evaluating legal remedies, including potential new complaints.
  • SAF Project: Front-end engineering design complete. Received government support to amend initiative agreement for increased BC LCFS credits to fund work toward a Final Investment Decision (FID), now targeted for 2026.
  • Regulatory: BC Low Carbon Fuels Act amendments effective April 1, 2025, increased renewable fuel requirement for diesel from 4% to 8% and mandated domestic production.
• Capital Program:
  • Maintenance capital estimated at $8.0 million to $10.0 million for 2025, primarily for a planned three-week turnaround in Q3 2025.

Notable Quotes

• Note: No direct quotes from the CEO or President were included in the provided text.