Innergex Power Income Fund announces first quarter results for 2009


    - Power generation increases compared to first quarter of 2008
    - Adjusted net earnings up from $0.5 million to $2.5 million in 2009
    - Distribution payout ratio for the Fund set at 99%

    LONGUEUIL, QC, May 11 /CNW Telbec/ - Innergex Power Income Fund (TSX:
IEF.UN) (the "Fund") today announced its financial results for the first
quarter ended March 31, 2009. Increased production and higher power rates led
to growth compared to the same quarter of the previous year.

                 For the three-month periods ending March 31
                                                      2009             2008
    Production (MW-hr)                             163,912          160,939
    Gross operating revenues                       $13.9 M          $13.6 M
    EBITDA                                         $11.1 M          $10.9 M
    Net adjusted earnings                           $2.5 M           $0.5 M
    Net adjusted earnings per unit                   $0.08            $0.02


    The Fund's power generating facilities produced 163,912 MW-hr during the
first quarter of 2009, an increase of 2% compared to the corresponding period
in 2008. The most significant factor in this increase is the performance of
the L'Anse-à-Valleau wind farm ("AAV"), which produced 11% more power than
during the first quarter of 2008. This increased production is due in part to
conditions more favourable to wind-power generation during the first quarter
of 2009. Hydroelectric facilities in Quebec also enjoyed favourable
hydrological conditions, counterbalancing less favourable conditions at the
Rutherford Creek (BC) and Horseshoe Bend (Idaho) facilities.
    These power generation figures translated into gross operating revenues
of $13.9 million for the first quarter of 2009, an increase of 3%, or $0.3
million, compared to gross operating revenues of $13.6 million posted during
the first quarter of 2008. Increased revenues were the result of higher
production levels and rates - the latter resulting from increased power rates
linked to inflation as specified in long-term power purchase agreements (PPA)
with Hydro-Québec and with British Columbia Hydro and Power Authority.


    Earnings before interest, provision for income taxes, depreciation and
amortization, other revenues and expenses and minority interest (EBITDA)
totalled $11.1 million during the first quarter of 2009, a 2% increase as
compared to EBITDA of $10.9 million for the corresponding quarter in 2008.
These results reflect greater power generation at the Fund's facilities, as
well as power purchase rates set at a higher level for the first quarter of
2009 compared to the first quarter of the previous year.


    The Fund manager believes that net adjusted earnings represent additional
information that is important to the reader, as it provides a measure of
profitability that excludes certain items that do not immediately impact cash
on hand. The net adjusted earnings exclude unrealized losses / gains on
exchange rates and derivative financial instruments and related future income
taxes. They also exclude major non-recurring items, such as the impact on
future income taxes resulting from modifications to tax legislation or changes
in tax rates.
    The Fund posted net adjusted earnings of $2.5 million ($0.08 per trust
unit) for the first quarter of 2009, compared to $0.5 million ($0.02 per trust
unit) for the first quarter of 2008. The difference is primarily the result of
a loss of $1.8 million realized on a derivative instrument during the first
quarter of 2008. The Fund's net adjusted earnings are calculated as follows:

                                             Quarter ended    Quarter ended
    Net adjusted earnings                   March 31, 2009   March 31, 2008
    Net earnings (net loss)                     $3,019,454        $(760,993)

    Add / (deduct)
    Unrealized (gain) loss on derivative
     financial instruments                        (573,779)       1,629,279
    Unrealized foreign exchange loss                96,460           94,843
    Future taxes related to (losses) /
     gains on foreign exchange and on
     unrealized derivative financial
     instruments                                   (86,318)        (439,905)
    Adjusted net earnings                       $2,455,817         $523,224
    Adjusted net earnings per trust unit             $0.08            $0.02


    Net distributable cash for the first quarter of 2009 was $7.4 million, as
compared to $5.4 million for the corresponding period in 2008. Distribution
for the first quarter of 2009 and of 2008 was set at $7.3 million, or $0.25
per unit. For the first quarter of 2009, the distribution payout ratio is 99%,
compared to 135% for the first quarter of 2008. The improvement in this ratio
results from a decrease in repayments of long-term debt and the realized loss
of $1.8 million on a derivative financial instrument reported in 2008 (nil in
2009). Consequently, during the most recent quarter, following distribution to
unitholders, the Fund deposited its net distributable cash surplus into
current cash accounts. During the corresponding quarter in 2008, the Fund used
$1.9 million in cash on hand to enhance the net distributable cash in order to
maintain distributions to unitholders.


    Michel Letellier, President and Chief Executive Officer of Innergex
Renewable Energy Inc., the Fund's Manager, notes, "The Fund has posted
improved financial results for the first quarter, thereby demonstrating its
ability to produce stable returns for unitholders. The Fund has reserves at
its disposal, along with access to credit facilities and loans required for
our operations to run smoothly. As a result, we believe that the Fund is in a
position to continue to offer stability to unitholders in the coming months,
despite the recession."
    The unaudited consolidated financial statement and the management's
discussion and analysis can be downloaded from Innergex' website at:, as well as of the website of Sedar, at


    Some indicators referred to in this press release are not recognized
measures under Canadian Generally Accepted Accounting Principles ("GAAP").
Consequently, they may not be comparable to measures presented by other
issuers. The Fund believes that these indicators are important since they
provide the reader with additional information about production, available
cash and the Fund's ability to meet its cash distribution objectives to
unitholders. The Fund also believes that they facilitate the comparison of
results over different periods.
    Innergex Power Income Fund is an open-ended income trust that indirectly
owns interests in 10 hydroelectric power-generating facilities and two wind
farms. The Fund's installed capacity is 340 MW (net interest of 210 MW).
Approximately 27% of total annual production comes from wind energy. The
Fund's units are traded on the Toronto Stock Exchange under the symbol IEF.UN.
The hydroelectric facilities and wind farms are managed by Innergex Renewable
Energy Inc., the manager, under long-term agreements with the Fund.


    In order to inform the Fund's unitholders as well as potential investors
on future prospects of the Fund, this press release may contain
forward-looking statements within the meaning of securities legislation.
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 hereof, the estimates, forecasts, projections, expectations or
opinions of the Manager 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 those expressed, or implied, including: (i) operations-related
risk; (ii) hydrology and wind regime risk, (iii) reliance on major customers;
(iv) tax treatment of distributions, (v) level of production from Fund's
facilities, (vi) the cost of production of the Fund's facilities, (vii)
interest rates as they bear on the Fund's indebtedness. Although the Fund
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 readers are cautioned not to
rely unduly on these Forward-looking Statements. The Forward-looking
Statements are expressly qualified by this cautionary statement. The Fund 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.

For further information:

For further information: or interviews: Ms. Edith Ducharme, LL.L.,
Director - Financial Communications and Investor Relations, Innergex Renewable
Energy Inc., Manager of the Fund, (450) 928-2550, ext. 222,; Mr. Jean Trudel, MBA, Vice President - Finance and
Investor Relations, Innergex Renewable Energy Inc., Manager of the Fund, (450)
928-2550, ext. 252,;

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