LONGUEUIL, QC, March 27 /CNW Telbec/ - Innergex Renewable Energy Inc.
(the "Corporation"), a developer of renewable power generating facilities,
releases today its first annual financial results as a public company. The
Corporation's results benefit from the transactions completed concurrently
with its initial public offering ("IPO") on December 6, 2007. The Corporation
owns a portfolio of green power projects which are at different stages of
Prior to its IPO, the Corporation provided management services to Innergex
Power Income Fund (the "Fund") and to Innergex II Income Fund ("Innergex II"),
and owned a 15% equity interest in Innergex II. On December 6, 2007, the
Corporation successfully issued 10,455,000 common shares for gross proceeds of
$115 million to acquire the equity interest it did not already own in Innergex
II. The Corporation now owns one operating hydroelectric facility (8 MW),
interests in nine development projects with power purchase agreements under
construction or to be constructed between 2008 and 2012 (gross expected
capacity of 565 MW), and prospective projects (gross expected capacity of more
than 1,600 MW). The Corporation also owns 16.1% of the outstanding units of
the Fund, which were issued to Innergex II following the sale of two wind
farms to the Fund. The Fund owns interests in 10 hydroelectric facilities and
two wind farms having an aggregate installed capacity of 340 MW.
These transactions explain the significant difference in the Corporation's
2007 results as compared to 2006 results when the Corporation did not own any
power generating facility, projects under development or units of the Fund.
For the year ended December 31, 2007, the Corporation reported revenues of
$8.0 million compared to revenues of $6.2 million in 2006, mainly due to the
Corporation's share of the Fund's net earnings for the last 26 days of 2007
which provided additional revenues of $1.8 million. The Fund's net earnings
for the fourth quarter ended December 31, 2007 included a non-recurrent future
income tax recovery of $6.7 million which positively affected the Fund's net
earnings and therefore the Corporation's share of the Fund's net earnings. As
such, this amount will be significantly lower in the years to come and should
not be extrapolated over a full year. For the year ended December 31, 2007,
expenses, made up mostly of general and administration expenses, totalled $6.4
million compared to $5.8 million during the year 2006. This increase in
expenses is mainly due to a greater number of projects under management or
under development which required the hiring of additional employees.
For the year ended December 31, 2007, the Corporation posted net earnings
and comprehensive earnings of $5.5 million (basic and diluted $1.64 per
share). For the corresponding period in 2006, the net earnings and
comprehensive earnings totalled $0.2 million (basic and diluted $0.13 per
share). This difference can mainly be explained by the receipt of a
$4.3 million distribution from Innergex II related to capital gains earned
following the sale of projects concurrently or prior to the IPO, and by the
exceptionally high Corporation's share of the Fund's net earnings in the
amount of $1.8 million. Without accounting for these two items, the
Corporation would have recorded a loss of $0.6 million (basic and diluted loss
of $0.18 per share) in 2007.
Update on Projects under Construction
As at December 31, 2007, the projects under construction were: i) the
23 MW Umbata Falls hydroelectric project located in Ontario; ii) the 109.5 MW
Carleton wind farm located in Quebec, and iii) the 49.9 MW Ashlu Creek
hydroelectric project located in British Columbia. From the date of closing of
the IPO to December 31, 2007, a period of 26 days, the construction of these
projects continued as planned. The commercial in-service dates for the Umbata
Falls project, the Carleton wind energy project and the Ashlu Creek project
are expected to be in the third and fourth quarters of 2008, and in 2009
Update on Prospective Projects
The Corporation has prospective wind and hydroelectric projects with an
aggregate total potential installed capacity of more than 1,600 MW.
The Roussillon, Kamouraska and Massif-du-Sud wind energy projects have
been submitted into Hydro-Québec Distribution's Request for Proposals ("RFP")
for 2,000 MW of wind energy, which closed on September 18, 2007. The
Corporation expects that the name of the winners will be announced in May 2008
by Hydro-Québec Distribution.
The Corporation intends to submit the Kokish and Kaipit hydroelectric
projects to the Standard Offer Program currently being developed by the
British Columbia Hydro and Power Authority ("BC Hydro") for small renewable
power generation facilities with a nameplate capacity of less than 10 MW. The
Standard Offer Program is currently being reviewed by the BC Utilities
Commission. The Corporation expects that the Standard Offer Program will
become effective in the fall of 2008.
The Corporation is presently reviewing the possibility to submit some of
its portfolio of wind projects in British Columbia into the upcoming BC Hydro
Call for Clean Power or future RFPs.
"Since 1990, the management team at Innergex kept a steady growth over the
years and successfully secured power purchase agreements for nearly 900 MW of
renewable energy projects. The Corporation is now listed on the TSX and our
vision of managing and developing renewable energy facilities has not changed.
We believe our capacity to grow is now improved with the access to public
capital. We are now aiming to share our future growth with our new
shareholders", remarked Mr. Michel Letellier, President and CEO of Innergex
Renewable Energy Inc.
Innergex Renewable Energy Inc. (the "Corporation") is a developer, owner
and operator of hydroelectric facilities and wind energy projects in North
America. The Corporation's management team has been involved in the renewable
power industry since 1990. The Corporation owns a portfolio of projects which
consists of one operating facility (8 MW), interests in nine development
projects with power purchase agreements under construction or to be
constructed between 2008 and 2012 (gross expected capacity of 565 MW), and
prospective projects (gross expected capacity of more than 1,600 MW). Innergex
Renewable Energy Inc. also owns 16.1% of Innergex Power Income Fund trust
units, a publicly traded income fund listed on the Toronto Stock Exchange
(IEF.UN), and acts as its manager under long-term management agreements.
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
Corporation does not undertake to update forward-looking statements except in
accordance with applicable laws.
For further information:
For further information: Mr. Jean Trudel, MBA, Vice President - Finance
and Investor Relations, Innergex Renewable Energy Inc., (450) 928-2550,