Great Lakes Hydro Income Fund Reports Record Second Quarter Results



    STOCK SYMBOL: GLH.UN/TSX

    GATINEAU, QC, July 29 /CNW Telbec/ - Great Lakes Hydro Income Fund today
reported its financial and operating results for the second quarter ended
June 30, 2008. The Fund provides additional information on its strategy and
results in its Letter to Unitholders and Supplemental Information available at
www.greatlakeshydro.com under Investor Relations/Financial Highlights.
    Generation, revenues and income before non-cash items were the highest of
any quarter since the Fund's inception. Generation for the quarter was
1,260 gigawatt hours (GWh), representing increases of 328 GWh and 149 GWh over
the second quarter of 2007 and the long-term average, respectively. These very
strong results were mainly due to above-average water inflows in the Quebec,
Ontario and New England regions combined with favorable opening reservoirs
leading into the quarter. The Ontario region was the largest contributor to
the increase, with generation and revenues more than doubling relative to the
second quarter of 2007. Generation in Quebec also achieved an all-time high
despite the continued outage at Cedar Dam, which is now expected to be back in
service in early fall.
    Second quarter revenues of $56.6 million and income before non-cash items
of $31.4 million increased by 37% and 74%, respectively, from the same period
a year earlier. Second quarter distributions to unitholders totaled
$15.1 million or 31.3 cents per unit.
    "We are very pleased to report these excellent results and our second
consecutive quarter of record generation," said Richard Legault, President and
Chief Executive Officer. "Hydrology conditions have been very favorable
overall and the reservoirs in each of our operating regions are
well-positioned going into the third quarter. We continue to expect long-term
average generation for the rest of the year and remain focused on those
elements within our control, such as managing and maintaining our assets to
optimize their performance independent of hydrology conditions."


    Financial and Operating Highlights
    
    -------------------------------------------------------------------------
    Unaudited                              Three months         Six months
    CDN $ millions,                        ended June 30       ended June 30
     except otherwise noted                2008     2007      2008      2007
    -------------------------------------------------------------------------
    Revenues                            $  56.6  $  41.4   $ 107.8   $  89.6
    Income before non-cash items           31.4     18.0      58.3      42.8
    Distribution                           15.1     15.1      30.2      30.2
    Per unit
      Income before
       non-cash items                      0.65     0.37      1.21      0.89
      Distribution                         0.31     0.31      0.63      0.63
    Power generated (GWh)                 1,260      932     2,421     1,996
    Average price (cents/KWh)               4.5      4.4       4.5       4.5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    In the first half of 2008, the Fund has invested $5.5 million in capital
expenditures and major maintenance. For the full year, the Fund currently
expects to invest $16.9 million in capital expenditures and $3.0 million in
major maintenance for a total of $19.9 million. In the second quarter, work
continued as planned on the High Falls project in Québec, the Wells generating
station in Ontario and the Millinocket generating station in Maine.
    At quarter end, the Fund had a strong liquidity position and a current
cash balance of $13.1 million, an increase of $7.8 million from the balance at
the end of 2007.

    CONFERENCE CALL

    A conference call for investors and media to review the second quarter
results for 2008 will be held on Wednesday, July 30, 2008 at 10:00 a.m. (EDT).
To participate in the conference call, please dial 416-644-3421 or
1-800-731-6941 toll-free in North America, at 9:50 a.m. (EDT). For those
unable to participate in the conference call, a taped rebroadcast will also be
available until midnight August 1, 2008. To access this rebroadcast, please
call 1-877-289-8525 toll-free in North America, and enter the passcode
21277550#. The conference call will also be webcast live on the Fund's website
at www.greatlakeshydro.com, where it will be archived for three months.

    DISTRIBUTIONS

    The schedule below sets out the cash distribution history for the last
    twelve months:

    RECORD DATE             PAYMENT DATE           DISTRIBUTION PER UNIT
    -------------------------------------------------------------------------
    June 30, 2008           July 31, 2008          10.417 cents
    May 30, 2008            June 30, 2008          10.417 cents
    April 30, 2008          May 30, 2008           10.417 cents
    March 31, 2008          April 30, 2008         10.417 cents
    February 29, 2008       March 31, 2008         10.417 cents
    January 31, 2008        February 29, 2008      10.417 cents
    December 31, 2007       January 31, 2008       10.417 cents
    November 30, 2007       December 31, 2007      10.417 cents
    October 31, 2007        November 30, 2007      10.417 cents
    September 30, 2007      October 31, 2007       10.417 cents
    August 31, 2007         September 28, 2007     10.417 cents
    July 31, 2007           August 31, 2007        10.417 cents
    

    FORWARD-LOOKING STATEMENTS

    This news release may contain forward-looking statements concerning the
Great Lakes Hydro Income Fund ("Fund") business and operations. Forward
looking statements can be identified by the use of words, such as "believe",
"expect", "well positioned", "long-term", "grow", "expand", "enhance" or
variations of such words and phrases or state that certain actions, events or
results "will" be taken, occur or be achieved. Forward looking statements
involve assumptions, known and unknown risks, uncertainties and other factors
which may cause the actual results or performance to be materially different
from any future results or performance expressed or implied by the forward
statements. More details relating to risk factors can be found in the Fund's
annual information form in the section entitled Risk Factors.
    Examples of such statements include, but are not limited to factors
relating to production and the business, financial position, operations and
prospects for the Fund. They include (1) the Fund's level of generation; (2)
the Fund's cost of production; (3) interest rates as they bear on the Fund's
indebtedness; (4) planned capital expenditures; (5) the impact of changes in
the Canadian dollar - U.S. dollar on the Fund's costs and results of
operations; (6) the negotiation of collective agreements with its unionized
employees; (7) business and economic conditions; (8) the legislation governing
air emissions, discharges into water, waste, hazardous materials and workers'
health and safety as well as the impact of future legislation and regulations
on expenses, capital expenditures and restrictions on operations; (9)
regulatory investigations, claims, lawsuits and other proceedings; and (10)
reliance on the guaranteed price for electricity by Brookfield Renewable Power
Inc. Actual results and developments are likely to differ, and may differ
materially, from those expressed or implied in the forward-looking statements
contained herein, and as a such, you are cautioned not to place undue reliance
on these forward-looking statements.
    These forward-looking statements represent our views as of the date of
this news release. These forward-looking statements should not be relied upon
as representing the Fund's views as of any date subsequent to the date of this
news release.

    ABOUT GREAT LAKES HYDRO INCOME FUND

    Great Lakes Hydro (www.greatlakeshydro.com) is a premier Canadian income
fund. We are the largest power income fund in North America with
1,021 megawatts of power generating capacity and average annual production of
3,912 gigawatt hours.
    Great Lakes Hydro Income Fund produces electricity exclusively from
environmentally friendly hydroelectric resources. The Fund owns, operates and
manages 26 high quality hydroelectric generating stations located on eight
river systems in four distinct geographic regions across North America:
Quebec, Ontario, British Columbia and New England.
    Brookfield Renewable Power Inc., which comprises all the power operations
of Brookfield Asset Management Inc., owns 50.1% of the Fund's outstanding
units.
    Great Lakes Hydro Income Fund units are listed for trading on the Toronto
Stock Exchange under the symbol GLH.UN.
    %SEDAR: 00013106EF




For further information:

For further information: Zev Korman, Director, Investor Relations and
Communications, (416) 359-1955, unitholderenquiries@greatlakeshydro.com

Organization Profile

GREAT LAKES HYDRO INCOME FUND

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890