MPC Energy Solutions sells combined heat and power plant in Puerto Rico, increases free cash position

30 Dec 2024 10:51 CET

Amsterdam/Oslo – 30 December 2024 – MPC Energy Solutions NV (“MPCES”, “Company”)
has sold its combined heat and power (“CHP”) plant in Puerto Rico for USD 4
million. A company related to the off-taker, a local pharmaceutical company,
will acquire the equipment. The first installment of the sales price was paid
immediately and increased the Company’s free cash position by USD 2.8 million. A
second installment of the purchase price will be collected within the next 9
months and is secured by an irrevocable first-demand bank guarantee. In addition
to the sales price of USD 4 million, MPCES and the buyer agreed to a potential
additional cash payment in case the off-taker successfully restructures its
operations in the coming years and increases energy consumption from the power
plant.

In line with previous communication, MPCES is optimizing its portfolio, focusing
on core markets in Guatemala, El Salvador and Panama. While a sale of the CHP
plant - which is the smallest in the Company’s portfolio based on capacity and
annual energy output - has been on the Company’s agenda, it was fast-forwarded
due to the uncertain restructuring of the local off-taker. MPCES had shared in
previous quarterly reportings that the off-taker’s energy demand had dropped
significantly. Consequently, the CHP plant has generated revenues and profits
significantly below expectations this year, and collecting outstanding payments
has become irregular.

“The outlook shared by the off-taker for its restructuring was not satisfactory,
and we were faced with intolerable delays. Given the uncertainty and to prevent
greater losses down the road, we concluded that it is best to sell the asset and
recover as much of our investment as possible at this time”, said Stefan H.A.
Meichsner, Chief Financial Officer of MPCES.

MPCES had previously communicated its intention to sell the plant this year to
the market. MPCES acquired the project during the construction phase in early
2022, investing a total of USD 9 million at the time, of which USD 0.5 million
were recovered during the first year of operation in 2023. As a result of the
sale, the Company will incur a non-cash write-off on its investment of about USD
5 million on the project’s book value in 2024, of which USD 0.8 million were
already impaired and presented in MPCES’ Q3 results of this year.

Meichsner added: “We are diversified across multiple countries and off-takers.
This is an isolated event that does not affect any of our other projects at
all.”



About MPC Energy Solutions
MPC Energy Solutions ("MPCES") develops, builds, owns and operates renewable
energy assets, including utility-scale solar photovoltaics (PV) and onshore wind
farms and hybrid projects, combining renewable sources and storage technologies.
More details at www.mpc-energysolutions.com
(http://www.mpc-energysolutions.com/)

Media contacts
MPC Energy Solutions N.V.
Investor Relations & Public Relations
Email: ir@mpc-energysolutions.com

Norway
Mats Samdahl Weltz Salto Advisers
Phone: +47 950 46330
Email: msw@saltoadvisers.no

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