Innergex Renewable Energy Inc.: Q2 2009 Results - Production increases fivefold while projects under construction reach important milestones



    
    - Revenues of $7.5 million, compared with $2.4 million for the same
      period in 2008
    - Fitzsimmons Creek reaches important milestones:
        - Electricity Purchase Agreement with BC Hydro is signed
        - ecoENERGY Initiative agreement concluded
        - Construction ahead of schedule
        - Project financing entirely committed
    

    LONGUEUIL, QC, Aug. 13 /CNW Telbec/ - Innergex Renewable Energy Inc.
(TSX: INE) (the "Corporation" or "Innergex"), a leading Canadian developer,
owner and operator of renewable power generating facilities, releases today
its operating and financial results for its second quarter ended June 30,
2009.

    
    -------------------------------------------------------------------------
                                      Three-month              Six-month
    For the periods          ------------------------------------------------
    ending June 30                 2009        2008        2009        2008
    -------------------------------------------------------------------------
    Production (MW-hr)           63,421      12,790     123,504      23,437
    Revenues                   $    7.5M  $     2.4M  $    13.0M  $     3.4M
    Net earnings (loss)        $    8.4M  $     1.3M  $     6.5M  $    (4.5M)
    Net earnings (loss)
     per share                 $   0.36   $    0.06   $    0.28   $   (0.19)
    -------------------------------------------------------------------------


    Revenues increase dramatically, due to a fivefold increase in power
    production and operating revenues
    

    The Corporation reported revenues of $7.5 million and $13.0 million
during the three-month and six-month periods ended June 30, 2009,
respectively, compared to revenues of $2.4 million and $3.4 million in the
corresponding periods of 2008. These improvements are mainly due to the
increase in operating revenues resulting from the start of commercial
operations at the Umbata Falls and Carleton facilities in November 2008. By
comparison, the Corporation only benefited from the contribution of the Glen
Miller hydroelectric facility in both periods of 2008.
    "While our latest facilities of Carleton and Umbata Falls contribute to
increase Innergex revenues, we are focused on completing two new facilities at
Ashlu Creek and Fitzsimmons Creek, as well as making progress with regards to
our projects under development", explained Michel Letellier, President and
Chief Executive Officer of the Corporation.

    The two hydro facilities under construction reach important milestones

    
      Fitzsimmons Creek Hydro Project (7.5 MW): Construction ahead of
      schedule
    

    The project's construction has progressed on budget and at a faster pace
than planned. The Fitzsimmons Creek facility is now expected to begin
commercial operations in the second quarter of 2010, six months ahead of the
original schedule.
    On June 18, 2009, Fitzsimmons Creek Hydro Limited Partnership signed a
40-year power purchase agreement with British Columbia Hydro and Power
Authority ("BC Hydro") subject to the usual approval by the British Columbia
Utilities Commission ("BCUC").
    On July 28, 2009, the Corporation received a firm commitment from a
second financial institution thereby completing the syndication process. With
this additional $9.0 million in financing, expected to close during the fall
of 2009, the credit facility will total $24.0 million.
    Also subsequently to the end of the second quarter, on July 21, 2009,
Fitzsimmons Creek Hydro Limited Partnership signed an agreement with the
Federal government confirming that the project will receive incentive payments
under the ecoENERGY Initiative, provided certain conditions are met. The
Corporation estimates that this incentive payment should increase EBITDA by
approximately $0.3 million per year for the first ten years of operations.

    
      Ashlu Creek Hydro Project (49.9 MW): Construction progressing well
    

    During this three-month period of 2009, all three turbines were
substantially installed as was the first generator. As at the date of this
release, the installation of the second generator has been substantially
completed, and the last generator should be installed in September. The
commercial in-service date is expected at the end of 2009.

    
    Three projects under development receive the green light from the Québec
    government
    

    On June 15, 2009, the Québec government announced that it had adopted the
decree authorizing the construction of the Corporation's three wind farm
projects, namely the Montagne-Sèche project (58.5 MW) and both phases of the
Gros-Morne project (211.5 MW). The Montagne-Sèche and Gros Morne I (100.5 MW)
wind projects are expected to begin commercial operations in 2011, while
Gros-Morne II (111 MW) is expected to begin commercial operations in 2012.

    Perspectives

    In November 2008, Innergex submitted five hydroelectric Prospective
Projects under the 2008 BC Hydro Clean Power Call RFP (the "2008 CPC") which
constitutes a part of BC Hydro's long term acquisition plan ("LTAP"). The 2008
CPC results were originally expected by the end of June 2009. On July 27,
2009, the BCUC rejected BC Hydro's LTAP, but did not specifically reject the
2008 CPC. Innergex expects BC Hydro to announce in the coming weeks how they
intend to deal with the 2008 CPC, in light of the recent BCUC ruling.

    Innergex Renewable Energy Inc. is a leading developer, owner and operator
of run-of-river 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: i) interests in three operating facilities with an aggregate net
installed capacity of 60.9 MW (gross 140.5 MW); ii) interests in two projects
under construction and five projects under development with an aggregate net
installed capacity of 197.5 MW (gross 392.3 MW) for which power purchase
agreements with public utilities have been secured or which are eligible under
the British Columbia Hydro and Power Authority Standing Offer Program; and
iii) prospective projects of more than 1,600 MW (gross expected capacity of
more than 1,800 MW). Innergex Renewable Energy Inc. also owns 16.1% of the
Innergex Power Income Fund, a publicly traded income fund listed on the
Toronto Stock Exchange under the symbol "IEF.UN", and acts as its manager
under long-term management agreements. Innergex Power Income Fund owns
interests in 12 projects in operation, with a total net installed capacity of
210 MW (gross 340 MW).
    The Corporation's unaudited consolidated financial statements and the
management's discussion and analysis, can be downloaded from the Innergex
website at www.innergex.com and from the SEDAR website at www.sedar.com.

    Forward-looking statements

    In order to inform shareholders of the Corporation as well as potential
investors on future prospects of the Corporation, sections of this news
release may contain forward-looking statements within the meaning of
securities legislation ("Forward-looking Statements"). Forward-looking
Statements can generally be identified by the use of words and phrases, such
as "may", "will", "estimate", "anticipate", "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "forecasts", "intends" or
"believes", or variations of such words and phrases that state that certain
events will occur. Forward-looking Statements represent, as of the date of
this news release, the estimates, forecasts, projections, expectations or
opinions of the Corporation relating to future events or results.
Forward-looking Statements involve known and unknown risks, uncertainties and
other important 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-looking Statements. The material risks and
uncertainties which may cause the actual results and developments to be
materially different from the current expressed expectations in this news
release include: (i) execution of strategy, (ii) capital resources, (iii)
derivative financial instruments, (iv) current economic and financial crisis,
(v) hydrology and wind regime, (vi) investment in the Fund, (vii) construction
and design, (viii) development of new facilities, (ix) project performance, (*)
equipment failure, (xi) interest rate and refinancing risk, (xii) financial
leverage and restrictive covenants, (xiii) separation agreement and (xiii)
relationship with Hydro-Québec. Although the Corporation believes that the
expectations instigated by the Forward-looking Statements are based on
reasonable and valid hypotheses, there is a risk that the Forward-looking
Statements may be incorrect. The reader is cautioned not to rely unduly on
these Forward-looking Statements. The Forward-looking Statements, expressed
verbally or in writing, by the Corporation or by a person acting on its
behalf, are expressly qualified by this cautionary statement. The Corporation
does not undertake any obligation to update or revise any Forward-looking
Statements, whether as a result of events or circumstances occurring after the
date hereof, unless required by legislation.
    %SEDAR: 00026108EF




For further information:

For further information: Ms. Edith Ducharme, LL.L., Director - Financial
Communications and Investor Relations, Innergex Renewable Energy Inc., (450)
928-2550, ext. 222, educharme@innergex.com; Mr. Jean Trudel, MBA, Vice
President - Finance and Investor Relations, Innergex Renewable Energy Inc.,
(450) 928-2550, ext. 252, jtrudel@innergex.com; www.innergex.com


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