MPC Energy Solutions returns USD 10.8 million from St. Kitts project to shore up free cash reserves, focuses on higher-yielding prospects

MPC Energy Solutions returns USD 10.8 million from St. Kitts project to shore up free cash reserves, focuses on higher-yielding prospects

Amsterdam/Oslo – 17 November 2023 – MPC Energy Solutions (“MPCES”, “Company”) has announced that it is in the process of returning USD 10.8 million in free cash from its hybrid solar photovoltaics (“PV”) and battery storage project on the island of St. Kitts and Nevis. The project is a joint venture with Swiss battery expert Leclanché.  The transaction is expected to be concluded in the coming days and MPCES will subsequently exit the joint venture and the project.

MPCES will recover at least USD 10.8 million of its invested capital. The return of funds significantly improves the Company’s free cash reserves and allows MPCES to focus its resources towards higher-yielding activities.

“We need to remain focused on delivering adequate risk-adjusted returns and optimizing our portfolio. When evaluating our projects, we put emphasis on resilience against changing dynamics, last but not least to a significantly different interest rate environment”, said Stefan H.A. Meichsner, Chief Financial Officer of MPCES.

He continued, “With the repatriated funds we are now able to pursue investment opportunities which we believe in the long run to provide greater value for our shareholders.”

With regards to MPCES’ experience in St. Kitts and Nevis, Stefan H.A. Meichsner said, “Our exit is by no means a reflection of our commitment to the Caribbean and our willingness to help the needed energy transition. The project has a lot of merits and advantages, and we wish all parties involved a swift and decisive progress towards realizing it and bringing clean and affordable energy to the people of St. Kitts.”

As a potential consequence of the project exit, the Company predicts short-term net losses to not exceed USD 3.0 million, whilst at least USD 10.8 million will be recovered. In due course, MPCES will make any further required disclosures concerning the financial impact of its withdrawal from St. Kitts and Nevis. However, the firm is working to minimize these.

Meichsner elaborated. “We now have the ability to pursue alternative prospects and protect our company’s and shareholders’ overall interests. Exiting the project provides us with an opportunity to refocus our engagement, and we will grasp that opportunity.”

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About MPC Energy Solutions
MPC Energy Solutions ("MPCES") is a global provider of sustainable energy and primarily focuses on low-carbon energy infrastructure, including solar and wind farms, and other hybrid and energy efficiency solutions. The Company participates in the full project lifecycle of renewable solutions, from early-stage development through construction and operation. More details at www.mpc-energysolutions.com

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