LONGUEUIL, QC, March 14 /CNW Telbec/ - Innergex Power Income Fund
(TSX: IEF.UN) ("Innergex Power" or the "Fund") releases its financial results
for the fourth quarter and year 2006. The acquisition of the 49.9-MW
Rutherford Creek facility and hydrology conditions that were higher than
historical average account for the growth in Innergex Power results.
Years ended Three-month periods
December 31 ended December 31
2006 2005 Vari- 2006 2005 Vari-
Production 641,525 431,619 49% 144,538 127,971 + 13%
revenues $41.2 $30.0 37% $8.8 $8.8 -
million million million million
Net income $11.9 $10.0 19% $1.5 $3.6 - 57%
million million million million
per unit $0.48 $0.46 4% $0.06 $0.15 - 58%
For the year 2006, gross revenues totaled $41.2 million and production at
641,525 MW-hr, an increase as compared to 2005 of 37% and 49% respectively.
This increase is mainly due to the acquisition of the Rutherford Creek
facility in December 2005. Hydrology conditions during the year were 5% higher
than historical average and particularly at Saint-Paulin and Chaudière
facilities which set new production records since their respective commercial
Innergex Power posted a net income of $11.9 million ($0.48 per trust
unit) for the year 2006, 19% more than the net income of $10.0 million ($0.46
per trust unit) for 2005. These results are mainly due to the acquisition of
the Rutherford Creek facility and good hydrology conditions at other
facilities. In October 2005, as part of the acquisition of the Rutherford
Creek facility, the Fund issued 4,033,000 units to bring the total units
outstanding at 24,679,867 units. The moderate growth of the net income per
trust unit is a reflection of the additional units issued.
NET DISTRIBUTABLE CASH AND DISTRIBUTIONS
For 2006, annual net distributable cash totaled $26.1 million as compared
to $20.5 million in 2005 representing an increase of 27%. The Fund distributed
$0.965 per unit during the year, 2% more than the $0.945 per unit distributed
in 2005. Total distributions declared to unitholders in 2006 amounted to
$23.8 million, compared to $20.5 million in 2005, representing an increase of
16%. This increase in distributions is in conformity with the announcement
following the acquisition of the Rutherford Creek facility.
DISTRIBUTION PAYOUT RATIO
The distribution payout ratio for year 2006 stood at 91%, an improvement
compared to the 100% ratio in 2005. It should be noted that a distribution
payout ratio that is below 100% allows the Fund to accumulate cash and cash
equivalents, and provides the Fund with greater long-term flexibility and
stability. This improvement of the ratio in 2006 is mainly due to hydrology
conditions that were higher than the average.
For the quarter, the Fund's facilities produced 144,538 MW-hr, 13% more
than in the corresponding quarter of 2005 and 9% above historical average.
This increase is explained by production that was exceptional at the
Saint-Paulin and Chaudière facilities, which in turn were partially offset by
lower hydrology conditions at the Rutherford Creek facility. For the fourth
quarter, gross revenues totaled $8.8 million, which is similar to the gross
revenues of the corresponding quarter of last year, when hydrology conditions
were 17% higher than the average. The unchanged revenues can be explained by
the fact that Saint-Paulin and Chaudière facilities have generated more than a
specific maximum deliverable electricity and that the surplus electricity
produced is sold at a price significantly lower than the current price of
electricity. Net income for the three-month period stood at $1.5 million, or
$0.06 per unit, a decrease compared to 2005 net income that was $3.6 million
or $0.15 per unit. This result is mainly due to an increase in interests and
in the depreciation and amortization charges from the acquisition of the
Rutherford Creek facility. Net distributable cash stands at $5.4 million for
the quarter in 2006, compared to $6.5 million for the corresponding quarter of
2005. The Fund distributed $0.24125 per unit during the quarter, 2% higher
than 2005, representing $0.965 on an annualized basis.
"The year 2006 was very favourable for Innergex Power investors. Given
the quality of the assets and the high availability rate of the facilities,
Innergex Power was able to capitalize on of an exceptional hydrological year.
As a result of this performance, we are confident that we can make the most of
the opportunities that could lead to an increase of the unitholders'
investment value," said Gilles Lefrançois, President and CEO of Innergex
Management Inc., which is the Manager of the Fund.
The annual report to unitholders, which includes the audited consolidated
financial statements and the management's discussion and analysis, can be
downloaded from the Innergex Web site at www.innergex.com and the SEDAR Web
site at www.sedar.com.
Innergex Power Income Fund is an open-ended income trust that indirectly
owns ten hydroelectric power generating facilities with a total installed
capacity of 129.9 MW. These facilities are operated and managed by Innergex
Management Inc., the Manager, under long-term agreements with the Fund.
Investors should note that certain statements in this press release are
forward-looking and may not give full weight to all potential risks and
uncertainties. Forward-looking statements are, by their nature, subject to
risks and uncertainties, and actual results, actions or events could differ
materially from those set forth in the forward-looking statements. All
forward-looking statements speak only as of the date they were made. The Fund
does not undertake to update forward-looking statements.
For further information:
For further information: Mr. Jean Trudel, MBA Vice-President - Finance
and Investor Relations, Innergex Management Inc., (450) 928-2550 ext. 252,
firstname.lastname@example.org, www.innergex.com; Mr. Michel Letellier, MBA, Executive
Vice-President and CFO, Innergex Management Inc., (450) 928-2550 ext. 227