Run of River Power Reports Results For 2010

VANCOUVER, April 29, 2011 /CNW/ - Run of River Power Inc. ("ROR Power" or "the Company") (TSXV: ROR) today announced financial and operating results for the year ended December 31, 2010. The management discussion and analysis, consolidated financial statements and accompanying notes will be filed to SEDAR and posted on ROR Power's website (www.runofriverpower.com). All figures reported herein are in Canadian dollars unless otherwise stated.

Highlights

  • 38% increase in electricity production at the Company's Brandywine Creek run-of-river power plant as a direct result of increased water flows and performance and reliability improvements.

  • 40 year Energy Purchase Agreement ("EPA") executed in 2010 with BC Hydro for the Company's 25 MW Skookum Creek Power Project, and subsequent to year end, development plan submitted to the British Columbia Ministry of Natural Resource Operations.

  • Raised $3.1 million during the year through a 10% convertible debenture offering and $1.2 million in January 2011 through a 12% debenture to fund ongoing development.

"Energy generation at Brandywine improved significantly in 2010 due to better hydrology and ongoing performance and reliability improvements at the facility," said Rick Hopp, President and CEO. "The Company achieved a major milestone in May 2010 when it signed an EPA with BC Hydro for the Skookum Creek Power Project. While the Company's biomass projects were not selected for further negotiation in BC Hydro's Bioenergy Phase 2 Call, we are focusing our efforts on the Skookum Creek Power project, preparing construction schedules and evaluating alternatives for raising the necessary equity capital and project debt, and ongoing performance enhancements at Brandywine."

Financial Summary

               
Period ended December 31     3 months     12 months    
($000's except per share & generation amounts)     2010     2009     2010     2009  
                           
Electricity sales     433     274     1,904     1,371  
EBITDA1     (277)     (381)     (1,354)     (857)  
Net loss     (5,409)     (594)     (7,510)     (2,075)  
Basic and diluted loss per share     (0.08)     (0.01)     (0.10)     (0.03)  
Cash flow used in operations     (657)     (477)     (2,197)     (1,400)  
Total assets     28,556     33,235     28,556     33,235  
Generation (MWh)     7,397     4,713     32,518     23,566  
                           
EBITDA is earnings before interest, taxes, depreciation and amortization. It is not a measure under Canadian Generally Accepted Accounting Principles ("GAAP") and may not be comparable to similar measures presented by other companies. Refer to Non-GAAP measures section of the MD&A for an explanation and reconciliation.



Operating Results

2010 electricity sales of $1,904,133 increased $533,264 or 38.9% from 2009 sales of $1,370,869 as a direct result of an increase in electricity generated to 32,518 MWh from 23,566 MWh. The Company generated electricity revenue of $433,185 in the fourth quarter of 2010, compared to $274,178 in the same quarter of 2009. The increase in electricity generation and sales for both the year and the quarter are attributable to increased production at the Brandywine Creek power facility.

EBITDA for 2010 was negative $1,353,954 compared to negative EBITDA of $857,068 in 2009. The change is primarily attributable to higher G&A and some non-recurring plant operating expenses as part of the performance and reliability improvement program. EBITDA for the fourth quarter of 2010 was negative $276,147 compared to negative $380,987 for the same period last year. The improvement in EBITDA for the fourth quarter is directly related to the increased production and cost reduction initiatives at the Brandywine facility.

ROR Power recorded a net loss of $7.5 million for 2010, compared to a net loss of $2.1 million for 2009. Year over year, the net loss increased by $5.4 million, substantially due to the write-down of biomass project development costs. The loss, before write-down, would have been $2.3 million or 9.5% higher than the previous year. The Company recorded a net loss, before write-down, of $169,954 for the fourth quarter of 2010, compared to a net loss of $593,846 in 2009 with the improvement attributable to increased Brandywine production.

Funds used in operations were $2.2 million in 2010 compared to $1.4 million for 2009. This increase was due principally to funding increased operating losses in 2010 of approximately $0.5 million and funding insurance repairs in advance of receiving the insurance proceeds at the Brandywine facility of approximately $0.4 million.

Financial Position

In August 2010, the Company issued $3.1 million of 10% convertible debentures, due in August 2011. Subsequent to year end, the Company issued 12% debentures for $1.2 million and expects to close a private placement for $1.4 million by May 4, 2011. All funds raised are to fund ongoing development and for general corporate purposes.

With the award of an EPA for the Skookum Project, the Company's most recent forecast is that $80 million of additional capital will be required to complete this project, the majority of which will be required in 2012 and 2013 as construction is initiated. Accordingly, the Company is evaluating alternatives for raising the necessary equity capital and project debt to complete this project.

Non-GAAP Measures

The Company reports its financial position, results of operations and cash flows in accordance with Canadian generally accepted accounting principles ("GAAP") in Canadian dollars.

About Run of River Power Inc.

ROR Power develops renewable, sustainable energy through its portfolio of clean energy projects. The Company operates an Eco Logo© certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that generates cash flow under a 20-year contract with BC Hydro. ROR Power is well positioned for profitable growth through power generation initiatives that include its 25 MW Skookum Power Project, awarded an Electricity Purchase Agreement by BC Hydro in 2010. ROR Power's total development potential in excess of 600 MW represents a significant opportunity to help BC meet its rising demand for clean, sustainable power and achieve energy self-sufficiency by 2016.

Forward-Looking Statements

Statements in this release which describe Run of River Power Inc.'s intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve unknown risks and uncertainties which may cause the actual results, performances or achievements of Run of River Power Inc. to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. Run of River Power Inc. may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward-looking statements as required pursuant to applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Run of River Power Inc.

For further information:

Rick Hopp
President and CEO
Tel: 604-946-9232
rhopp@runofriverpower.com
        Vick Dusik
Chief Financial Officer
Tel: 604-946-9232
vsdusik@runofriverpower.com

 

Organization Profile

Run of River Power Inc.

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