TSX Venture Exchange Symbol: ROR
VANCOUVER, Aug. 27 /CNW/ - Run of River Power Inc. ("ROR Power" or "the
Corporation") (TSX-V: ROR) today announced financial and operating results for
the three months ended June 30, 2008. The Management's Discussion and
Analysis, consolidated financial statements and accompanying notes will be
available on SEDAR and on ROR's website www.runofriverpower.com on August 28,
2008. All figures reported herein are Canadian dollars unless otherwise
Second Quarter Highlights:
- Revenues decreased to $472,000 for the quarter as a result of
prolonged snowpack melt conditions and unscheduled maintenance at the
Brandywine Creek facility.
- Tsilhqot'in Power Corp., a joint venture between the Corporation's
wholly-owned subsidiary, Western Biomass Power Corp. ("Western
Biomass") and Tsilhqot'in National Government, submitted a proposal
("Tsilhqot'in Power project") to BC Hydro's Phase 1 Bioenergy Call.
- In August, Western Biomass completed the acquisition of 80% of Pacific
Northwest Biomass Corp. ("PNBC") and submitted a proposal ("Suskwa
Power project") under Phase 1 of the Bioenergy Call.
"Prolonged snowpack melt conditions and operational outages caused by
bearing failures at our Brandywine Creek facility resulted in a drop in
production and resultant revenues during the quarter. Repairs have been
completed and snowpack melt conditions have Brandywine running at normal
capacity," said Jako Krushnisky, President and CEO, Run of River Power.
"We continue to execute our business strategy with the submission of our
proposed 60 MW Tsilhqot'in Power project and our 30 MW Suskwa Power project to
Phase 1 of BC Hydro's Bioenergy Call," added Mr. Krushnisky. "The Call process
is expected to conclude with contract awards in mid-October."
($ in thousands, except Three Months Ended Six Months Ended
per share amounts) June 30 June 30
2008 2007 2008 2007
Electricity Sales 472 687 580 905
EBITDA(1) (182) 125 (686) (20)
Net loss (464) (200) (1,232) (683)
Basic and diluted loss per share (0.01) (0.01) (0.02) (0.02)
Cash flow from (used in)
operations (488) 61 (989) (258)
Total assets 32,776 22,783 32,776 22,783
Generation (MWh) 8,243 12,134 10,131 15,992
(1) EBITDA is earnings before interest, taxes, depreciation and
amortization and 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.
During the second quarter of 2008, ROR Power recorded revenue of $471,964
compared to $686,589 for the same quarter of 2007. Total production for the
second quarter was 8,243 MWh compared to 12,134 MWh in 2007. These results
reflect slower than expected snowpack melt conditions and unscheduled
maintenance at the Corporation's Brandywine generating facility. Reduced
production and the added repair costs in Q2 of 2008 resulted in an increased
net loss as well as negative EBITDA and cash flow used in operations when
compared to the same quarter of last year. Snowpack melt conditions have since
returned to normal, repairs have been completed and the facility has resumed
generating electricity at its rated capacity. These improved conditions have
continued into the summer months.
The Corporation currently has two large scale biomass power initiatives
under development, totaling 90 MW of base load capacity.
The 60 MW Tsilhqot'in Power project is a joint venture between the
Corporation's wholly owned subsidiary, Western Biomass, and the Tsilhqot'in
National Government. The project will utilize mountain pine beetle damaged
timber, which has devastated over eight million hectares of pine forests in
central British Columbia for its fiber supply.
The second project is the 30 MW Suskwa Biomass Power project to be
located near New Hazelton in Northwest British Columbia. Subsequent to quarter
end, the Corporation, via Western Biomass, acquired 80% of PNBC. PNBC holds a
100% interest in the project, with an option for its partners, the Suskwa
Chiefs, to acquire up to 40% of the facility.
Western Biomass submitted two proposals in the first phase of BC Hydro's
two phased 2008 Bio-Energy Call. To date the Corporation has not engaged in
any discussions with BC Hydro, which is expected to conclude the Call process
with EPA awards in mid-October.
ROR's 180 MW Upper Pitt River project has been deemed reviewable by the
Environmental Assessment Office. The Company expects to submit its application
for review in the spring of 2009, with the objective of obtaining an
environmental assessment certificate for the project in fall 2009. In the
meantime, the Corporation is actively pursuing alternatives for this cluster
On a parallel track with this objective, ROR is producing a comprehensive
development plan for three projects at the Mamquam River Watershed.
Bids for projects to be submitted in the BC Hydro Clean Call for power
are due in November 2008 with contracts to be awarded in 2009.
Both of these clusters have been registered with BC Hydro in the Clean
Call so they will be eligible to bid in November.
The Corporation continues to review acquisition possibilities for
producing assets as well as development potential. The Corporation is
considering diversification geographically as well as to different renewables,
The Corporation reports its financial position, results of operations and
cash flows in accordance with Canadian generally accepted accounting
principles ("GAAP") in Canadian dollars.
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. The TSX Venture Exchange has not reviewed and does
not accept responsibility for the adequacy or accuracy of this press release.
ABOUT RUN OF RIVER POWER INC.
Run of River Power Inc. develops renewable, sustainable energy through
its portfolio of run-of-river and biomass projects in BC. Its Brandywine Creek
run-of-river hydroelectric station generates cash flow under a 20-year
contract with BC Hydro. ROR Power is well positioned for profitable growth
from generating green power and pursuing strategic opportunities. Its total
development potential in excess of 500 MW is addressing the increasing demand
for clean, sustainable power and energy self sufficiency. More information is
available on the company's website at www.runofriverpower.com
ROR Power is listed on the TSX Venture Exchange under the symbol ROR.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Jako Krushnisky, President and CEO, Run of
River Power Inc., Tel: (604) 946-9232, firstname.lastname@example.org; Vick Dusik,
Chief Financial Officer, Run of River Power Inc., Tel: (604) 946-9232,