Innergex Power Income Fund: Increased production, operating revenues and net distributable cash in the second quarter of 2008



    LONGUEUIL, QC, Aug. 6 /CNW Telbec/ - Innergex Power Income Fund
(TSX: IEF.UN) (the "Fund") announces for the second quarter of 2008 a 21%
increase in power generated, 29% in gross operating revenues and 26% in net
distributable cash. The contribution made by the two wind farms acquired in
December 2007 and the good performance of its existing hydroelectric
facilities continue to drive growth at the Fund.
    This second quarter was also marked by the acquisition of a minority
interest held by IHI Hydro Inc. in the hydroelectric facilities at
Saint-Paulin and Chaudière and three hydroelectric facilities at Portneuf. The
Fund now fully owns all of its hydroelectric facilities. The Fund also
refinanced its long-term debt in order to boost available cash by cutting
amounts committed to future capital repayments.

    
    -------------------------------------------------------------------------
    Period ended June 30                 Three months          Six months
                                ---------------------------------------------
                                       2008       2007       2008       2007
    -------------------------------------------------------------------------
    Production (MW-hr)              244,378    201,411    405,317    286,919
    Gross operating revenues
     ($ millions)                      15.8       12.2       29.4       19.4
     EBITDA ($ millions)               12.8        9.7       23.6       14.9
    Net earnings (net loss)
     ($ millions)                       7.5      (41.5)       6.7      (40.5)
    Net earnings (net loss)
     per unit                         $0.26     ($1.68)     $0.23     ($1.64)
    Net distributable cash
     ($ millions)                       8.3        6.6       13.7       10.8
    Distribution payout ratio            89%        91%       107%       110%

    -------------------------------------------------------------------------
    

    OPERATING RESULTS

    For the second quarter of 2008, the power generated by the Fund's
electrical facilities reached 244,378 MW-hr, up 21% from the same period of
2007. This growth was due to the acquisition of wind farms completed in
December 2007 and the good performance of the existing hydroelectric
facilities. This level of production generated increasing gross operating
revenues in the second quarter of 2008 amounting to $15.8 million, as compared
to $12.2 million posted for the same period of 2007. Earnings before interest,
provision for income taxes, depreciation and amortization, other revenues and
expenses and minority interest ("EBITDA") totalled $12.8 million for the
second quarter of 2008, as compared to $9.7 million for the corresponding
period of 2007.
    For the six-month period ended June 30, 2008, the 405,317 MW-hr of power
generated represents a 41% increase over figures posted for the corresponding
period in 2007. The acquisition of two wind farms in December 2007 accounted
for 35% of this growth, and an excellent production record at the Fund's
hydroelectric facilities contributed another 6%. EBITDA for the six-month
period ended June 30, 2008 totalled $23.6 million, as compared to
$14.9 million posted for the same period of 2007. The acquisition of wind
farms in December 2007 played a large role in this growth.

    NET EARNINGS

    For the second quarter of 2008, the Fund posted net earnings of
$7.5 million ($0.26 per unit), as compared to a net loss of $41.5 million (net
loss of $1.68 per unit) for the corresponding quarter of 2007. It is important
to remember that the Fund recorded a $47.2 million provision for future income
taxes in the second quarter of 2007 following the Government of Canada's
adoption of legislation under which trusts will be taxed. For the six months
ended June 30, 2008, the Fund posted $6.7 million in net earnings ($0.23 per
unit), as compared to the net loss of $40.5 million (net loss of $1.64 per
unit) posted for the corresponding period of 2007.

    NET DISTRIBUTABLE CASH AND CASH DISTRIBUTIONS

    Net distributable cash for the quarter and the six months ended June 30,
2008 was $8.3 million and $13.7 million, respectively, as compared to
$6.6 million and $10.8 million, respectively, for the corresponding periods of
2007. The distribution payout ratios for the second quarter and the six-month
period ended June 30, 2008 were 89% and 107%, respectively, a slight
improvement over ratios of 91% and 110%, respectively, reported for the
corresponding periods of 2007. Given seasonal variations in water conditions,
power generation from hydroelectric facilities in the second quarter can
generally count on the Spring runoff.

    OUTLOOK

    "The Fund's earnings are growing, reflecting the benefits of having
acquired interests in two wind farms in December 2007," said Michel Letellier,
President and CEO of Innergex Renewable Energy Inc., the manager of the Fund.
"The Fund is sticking to its strategy, and by acquiring IHI Hydro Inc. on May
29, 2008, the Fund has once again made an acquisition that benefits
unitholders. The acquisition has allowed the Fund to own all of the
Saint-Paulin and Chaudière facilities as well as the three facilities at
Portneuf, and it represents a good fit with our growth objectives."
    The quarterly report to unitholders, which includes the unaudited
consolidated financial statements and management's discussion and analysis,
can be downloaded from the Innergex Web site at: www.innergex.com, as well as
from the SEDAR Web site at: www.sedar.com.

    PROFILE

    Innergex Power Income Fund is an open-ended income trust that indirectly
owns interests in 10 hydroelectric power-generating facilities and two wind
farms. The Fund's net installed capacity is 210 MW. Approximately 27% of total
annual production comes from wind energy. 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 the 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
Corporation does not undertake to update forward-looking statements except in
accordance with applicable laws.
    %SEDAR: 00018706EF




For further information:

For further information: Jean Trudel, M.B.A., Vice-President - Finance
and Investor Relations, Innergex Renewable Energy Inc., Manager of the Fund,
(450) 928-2550, ext. 252, info@innergex.com; www.innergex.com

Organization Profile

INNERGEX POWER 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