Innergex Power Income Fund: accretive acquisition for fourth quarter results



    LONGUEUIL, QC, March 11 /CNW Telbec/ - Innergex Power Income Fund (TSX:
IEF.UN) (the "Fund") releases its financial results for the fourth quarter and
the year ended December 31, 2007. The power produced by the Baie-des-Sables
and Anse-à-Valleau wind farms during the last 26 days of the quarter, as well
as the exceptional electricity generation at the Rutherford Creek facility
contributed to the increase in the gross operating revenue for the fourth
quarter in 2007.

    
    -------------------------------------------------------------------------
    For the
    periods                Three months                   Twelve months
    ended         -----------------------------------------------------------
    December 31            2007          2006            2007            2006
    -------------------------------------------------------------------------
    Production
     (MW-hr)            153,602       144,538         608,509         641,525
    Gross
     operating
     revenue      $10.6 million  $8.8 million   $40.4 million   $41.2 million
    Net earnings
     (Net loss)    $8.7 million  $1.5 million  ($28.4 million)  $11.9 million
    Net earnings
     (Net loss)
     per unit             $0.33         $0.06          ($1.13)          $0.48
    -------------------------------------------------------------------------
    

    OPERATING RESULTS

    During the fourth quarter in 2007, the Fund produced a total of
153,602 MW-hr, which is 6% higher as compared to the corresponding quarter in
2006 and lower by 1% as compared to the long-term average. The level of
production of the Rutherford Creek facility during the quarter and the
contribution of the Baie-des-Sables and Anse-à-Valleau wind farms over the
last 26 days of the quarter mainly explain this result. This increase in
production and in the average electricity rates resulted in gross operating
revenue of $10.6 million, a 21% increase compared with the corresponding
quarter in 2006.
    For the year 2007, production totalled 608,509 MW-hr compared to
641,525 MW-hr for the year 2006. Hydrology conditions in 2006 resulted in a
production 5% higher than the long-term average, compared to 2007 during which
production was lower by 3%. Gross operating revenue totalled $40.4 million, 2%
lower as compared to the 2006 results which totalled $41.2 million. This
decrease can be explained by less favourable hydrology conditions and by
shutdowns at the Portneuf facilities at the beginning of the summer and during
the fall of 2007, as a consequence of Hydro-Québec TransEnergie performing
maintenance work at its Les Basques substation and the Ministère des
Transports du Québec for moving the transmission line for road
reconfiguration.

    NET EARNINGS

    Net earnings for the 2007 fourth quarter totalled $8.7 million ($0.33 per
trust unit) compared to $1.5 million ($0.06 per trust unit) in 2006. This
higher level of net earnings is mainly due to a decrease in federal income tax
rates adopted during the quarter which resulted in a future income tax
recovery of $6.7 million.
    During the twelve-month operating period, the Fund posted a net loss of
$28.4 million (net loss of $1.13 per trust unit). This net loss is due to an
additional provision for future income taxes of $40.2 million recorded
following the adoption of the Government of Canada legislation regarding trust
taxation, and partially offset by the decrease in income tax rates adopted
during the fourth quarter. Without taking into consideration this additional
provision, the net earnings would have been $11.8 million ($0.47 per trust
unit). For the year 2006, net earnings totalled $11.9 million ($0.48 per trust
unit). This provision for future income taxes is non-recurring and has no
impact on distributable cash or on distributions to unitholders.

    NET DISTRIBUTABLE CASH AND DISTRIBUTIONS

    For the 2007 fourth quarter, net distributable cash totalled $6.0 million
and distributions to unitholders were $6.3 million, compared to net
distributable cash of $5.4 million and distributions to unitholders of
$6.0 million in 2006.
    For the year 2007, the net distributable cash totals $23.7 million, and
the Fund distributed $24.2 million, compared to net distributable cash of
$26.1 million and distributions declared to unitholders of $23.8 million in
2006. The distribution payout ratios for the fourth quarter and the
twelve-month period of 2007 represent 105% and 102% respectively, compared to
111% and 91% respectively in 2006. During the fourth quarter and the year
2007, the Fund maintained its distributions to unitholders using its
accumulated cash, without using neither its hydrology reserve nor its bank
credit facilities.

    OUTLOOK

    "The year ends on a positive note for the Fund with increasing results in
the fourth quarter. The financial strength and the quality of its electricity
generating assets provide the Fund with stability and flexibility, and allows
for an historical level of distributions to unitholders. Therefore, since
January 1, 2008, unitholders can count on monthly distributions representing
$1.00 on an annualized basis. This increase is due to the acquisition of a 38%
interest in the Baie-des-Sables and Anse-à-Valleau wind farms. These two wind
farms are expected to provide the Fund with increasing results and growth in
distributable cash in 2008. This acquisition was completed thanks to the
issuance of 4,724,409 trust units. Standard and Poor's rating service
maintained the stability rating of SR-2 (stable) with a moderate distribution
profile assessment for the Fund's unit, following the acquisition of the
Baie-des-Sables and Anse-à-Valleau wind farms. The Fund can rely on a
committed and performance-oriented manager, which now owns 16.1% of the Fund's
outstanding trust units", remarked Mr. Jean La Couture, Chairman of the Board
of Trustees of Innergex Power Trust.
    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.

    PROFILE

    Innergex Power Income Fund is an open-ended income trust that indirectly
owns interests in ten hydroelectric power generating facilities and two wind
farms with a total installed capacity of 339.9 MW (net interest of 197 MW).
The Fund's units are traded on the Toronto Stock Exchange under the symbol
IEF.UN. The hydroelectric facilities and wind farms are managed by Innergex
Renewable Energy Inc., the Manager, under long-term agreements with the Fund.

    FORWARD-LOOKING STATEMENTS

    Investors should note that some 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
materially differ from those set forth in the forward-looking statements. All
forward-looking statements are only valid as of the date they were made. The
Fund does not undertake to update forward-looking statements.
    %SEDAR: 00018706EF




For further information:

For further information: Mr. Jean Trudel, MBA, Vice-President - Finance
and Investor Relations, Innergex Renewable Energy Inc., as Manager, (450)
928-2550 ext. 252, info@innergex.com; www.innergex.com

Organization Profile

INNERGEX POWER INCOME FUND

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