- Umbata Falls and Carleton Wind Farm construction moving towards
completion and commissioning in Q4
- Innergex on-schedule for 61 MW of installed capacity by year end
- Revenues of Glen Miller are exceeding long-term average
- Memorandum of understanding with Ledcor to develop 200 MW of
hydroelectric projects in B.C.
LONGUEUIL, QC, Aug. 13 /CNW Telbec/ - Innergex Renewable Energy Inc.
(TSX: INE) (the "Corporation"), a leading Canadian developer, owner and
operator of renewable power generating facilities, released today its
operating and financial results for the second quarter of 2008.
During the second quarter of 2008, the Corporation continued the
construction of its 23 MW Umbata Falls hydroelectric project in Northern
Ontario, its 109.5 MW Carleton wind farm in Eastern Quebec and its 49.9 MW
Ashlu Creek hydroelectric project in British Columbia. In addition and, as
planned, the Corporation also moved forward with the other projects under
development, for which power purchase agreements ("PPA's") have been secured.
"Construction of the Umbata Falls hydroelectric project is coming to an
end and we expect to commission the project in October 2008. Construction of
the Carleton wind farm is progressing well and the planned commissioning is on
schedule for December 2008. With construction of our projects proceeding as
planned in Q2, by the end of 2008 the Corporation expects to have added to its
8 MW installed capacity, an ownership interest representing a further 53 MW of
installed capacity, bringing its total to 61 MW, with three facilities in
commercial operation under long-term PPAs. This is in addition to the 16.1%
interest in the 210 MW of net installed capacity owned through Innergex Power
Income Fund (the "Fund")" said Michel Letellier, President and CEO of Innergex
Renewable Energy Inc.
The Fund is an open-ended income trust listed on the Toronto Stock
Exchange to which the Corporation provides management services, and in which
it holds a 16.1 percent interest. The Corporation includes its share of the
Fund's earnings and monthly cash distributions in its financial statements.
More information regarding the Fund may be found at www.sedar.com.
During the quarter and six-month period ended June 30, 2008, the
Corporation received operating revenues from the Glen Miller hydroelectric
facility, management fees from the Fund and its 16.1 percent share of the
Fund's net results. For the corresponding periods in 2007, the Corporation
owned no power generating facility, nor projects under development, nor units
in the Fund.
Second quarter revenues totalled $2.4 million, a 41% increase, compared
to $1.7 million for the same period in 2007, and included $0.9 million from
the Glen Miller hydroelectric facility, $0.5 million in management fees from
the Fund, and $1.0 million as the Corporation's share of net earnings in the
Fund, an entity subject to significant influence.
For the six-month period ended June 30, 2008, revenues totalled
$3.4 million, compared to $3.5 million for the same period in 2007, and
included $1.6 million from Glen Miller hydroelectric facility, $1.1 million in
management fees from the Fund, and $0.7 million from the Corporation's share
of net earnings in the Fund.
Revenues during the comparable periods in 2007 were comprised mainly of
management fees from the Fund and Innergex II Income Fund.
During the second quarter of 2008, the Corporation was also entitled to
receive its share of the Fund's monthly cash distributions, which totalled
$1.2 million and $2.4 million for the respective three-month and six-month
periods ended June 30, 2008, compared to nil in 2007.
For the quarter ended June 30, 2008, the Corporation posted net earnings
of $1.6 million or $0.07 per share, compared to less than $0.1 million, or
$0.03 per share for the second quarter of 2007.
For the six-month period ended June 30, 2008, the Corporation posted a
net loss of $3.9 million or a loss of $0.17 per share, compared to net
earnings of $0.1 million or $0.06 per share in the first half of 2007. This
loss is largely attributable to an unrealized loss on derivative financial
instruments of $2.6 million used to protect the Corporation from interest
rates fluctuations on its long term-debt and the write-off of project
development costs of $1.6 million.
Memorandum of understanding with Ledcor
On April 25, 2008, the Corporation announced that it had reached an
agreement with Ledcor Power Group Ltd. ("Ledcor") to acquire 66 2/3% of a
joint venture that holds the rights to develop 18 run-of-river hydroelectric
power projects located in the Lower Mainland of British Columbia. These
projects would represent a potential installed capacity of more than 200 MW
and produce over 1,000 GW-hr of clean energy for the Province, meeting the
needs of approximately 98,000 BC homes.
The Corporation will invest $8 million to make this acquisition in
addition to issuing 200,000 warrants to Ledcor. The warrants will be
exercisable within 24 months of the transaction closing at a strike price of
$12.50 per warrant. Ledcor will remain the owner of 33 1/3% of the joint
venture. The Corporation expects to execute the agreement with Ledcor in the
third quarter of 2008.
The quarterly report, which includes the unaudited consolidated financial
statements and the management's discussion and analysis, can be downloaded
from the Innergex Web site at www.innergex.com and from the SEDAR Web site at
Innergex Renewable Energy Inc. 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 1,500 MW). Innergex
Renewable Energy Inc. also owns a 16.1% interest in Innergex Power Income
Fund, 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,