Innergex Power Income Fund: Q3 2009 results - Production higher than
long-term average

    
    Quarter highlights:

    - Wind-farm production 12% higher than long-term average
    - Hydroelectric production 5% higher than long-term average
    - Fund distribution payout ratio of 95% for third quarter of 2009
    

LONGUEUIL, QC, Nov. 9 /CNW Telbec/ - Innergex Power Income Fund (TSX: IEF.UN) (the "Fund") announces its financial results for the quarter ended September 30, 2009. For a second consecutive year, favourable hydrological and wind conditions resulted in higher than expected production during the third quarter.

    
    -------------------------------------------------------------------------
                               Three-month                  Nine-month
    For periods         -----------------------------------------------------
    ended September 30      2009          2008          2009          2008
    -------------------------------------------------------------------------
    Production (MW-hr)   223,302       236,778       634,978       642,095
    Expected long-term
     average (MW-hr)            210,592                     632,857
    Gross operating
     revenues              $15.0 M       $15.4 M       $45.4 M       $44.8 M
    EBITDA                 $11.9 M       $12.5 M       $36.6 M       $36.1 M
    Adjusted net
     earnings              $ 2.8 M       $ 4.3 M       $ 9.9 M       $ 9.2 M
    Adjusted net
     earnings per unit     $0.09         $0.15         $0.34         $0.31
    -------------------------------------------------------------------------
    

According to Michel Letellier, President and Chief Executive Officer of Innergex Renewable Energy Inc., the Fund's manager, "The high production level for this quarter is very good news, since it enables us to accumulate cash. On September 30, 2009, when considering reserve accounts, the Fund held $28.4 million in cash, nearly $1.00 per unit."

OPERATING RESULTS AND EBITDA

The Fund generated gross operating revenues of $15.0 million during the third quarter of 2009, a drop of $0.4 million or 3% compared with the same period in 2008. This result is explained primarily by lower production ($0.9 million), partially compensated by higher selling prices ($0.5 million) resulting from increased power rates as specified in long-term power purchase agreements ("PPAs"). This drop in gross operating revenues explains the earnings before interest, provision for income taxes, depreciation and amortization, other revenues and expenses and minority interest ("EBITDA"), which amounted to $11.9 million for the three-month period ended September 30, 2009, a 4% drop compared with the EBITDA of $12.5 million posted for the third quarter of 2008.

For the nine-month period ending September 30, 2009, gross operating revenues totalled $45.4 million, up $0.7 million or 1% compared with the same period in 2008. This increase is due to rising selling prices ($1.2 million), partially offset by lower production ($0.5 million). This slight rise in gross operating revenues resulted in a similar growth in EBITDA for the nine-month period ending September 30, 2009. The EBITDA of $36.6 million for this period compares with EBITDA of $36.1 million for the first nine months of 2008. For the nine months ended September 30, 2009, the Fund's facilities produced at a level slightly higher than the long-term average, but slightly lower than the production level for the same period in 2008.

ADJUSTED NET EARNINGS

The manager believes adjusted net earnings to be important additional information for the reader, since they provide a measure of the Fund's profitability excluding certain elements that do not affect cash. Adjusted net earnings exclude unrealized foreign exchange gain/loss and unrealized gain/loss on derivative financial instruments as well as related future income taxes. They also exclude a number of non-recurring elements, such as future income taxes due to changes in tax laws or taxation rates.

In the third quarter of 2009, the Fund showed adjusted net earnings of $2.8 million (or $0.09 per unit), compared with $4.3 million ($0.15 per unit) for the same quarter in 2008. For the first nine months of 2009, adjusted net earnings were $9.9 million ($0.34 per unit) compared with $9.2 million ($0.31 per unit) for the same period in 2008.

The Fund calculates adjusted net earnings as follows:

    
    -------------------------------------------------------------------------
                     Three-month   Three-month    Nine-month    Nine-month
    Adjusted net    period ended  period ended  period ended  period ended
     earnings       September 30, September 30, September 30, September 30,
                            2009          2008          2009          2008
    -------------------------------------------------------------------------
    Net earnings      $2,833,954    $3,774,098   $19,206,420   $10,520,476

    Add/(deduct):

    Unrealized loss
     (gain) on
     derivative
     financial
     instruments         793,052       606,191   (10,978,044)    1,694,292
    Unrealized
     foreign
     exchange (gain)
     loss               (161,822)       90,259      (297,804)      160,995
    Future taxes
     related to
     unrealized
     gains/losses
     on foreign
     exchange and
     on derivative
     financial
     instruments        (700,366)     (163,672)    2,011,853      (457,459)
    Increase
     (decrease) in
     future income
     tax rates                 -             -             -    (2,680,653)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Adjusted net
     earnings         $2,764,818    $4,306,876    $9,942,425    $9,237,651
    Adjusted net
     earnings per
     trust unit            $0.09         $0.15         $0.34         $0.31
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

Per-unit results for the third quarter and the first nine months of 2009 and 2008 are based on a weighted average of 29,404,276 trust units in circulation.

NET DISTRIBUTABLE CASH AND CASH DISTRIBUTIONS

For the three-month period ended September 30, 2009, the Fund generated $7.7 million in net distributable cash compared with $8.2 million for the same quarter in 2008. Declared cash distributions totalled $7.4 million, or $0.25 per trust unit, a figure comparable with the quarter ended September 30, 2008. The Fund's third-quarter distribution payout ratio in 2009 and 2008 worked out to 95% and 90%, respectively.

Since the start of 2009, the Fund has generated net distributable cash of $23.6 million and declared cash distributions totalled $22.1 million, or $0.75 per unit. For the first nine months of 2008, the Fund generated $21.9 million in net distributable cash. Declared cash distributions totalled $22.0 million, or $0.75 per unit. For the nine-month periods of 2009 and 2008, the distribution payout ratio worked out to 93% and 101%, respectively.

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.

The unaudited consolidated financial statement and the management's discussion and analysis can be downloaded from Innergex' website at: www.innergex.com, as well as of the website of Sedar, at www.sedar.com.

NON-GAAP MEASURES

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.

FORWARD-LOOKING STATEMENTS

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.

%SEDAR: 00018706EF

SOURCE INNERGEX POWER INCOME FUND

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, educharme@innergex.com; Mr. Jean Trudel, MBA, Vice President - Finance and Investor Relations, Innergex Renewable Energy Inc., Manager of the Fund, (450) 928-2550, ext. 252, jtrudel@innergex.com; www.innergex.com

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INNERGEX POWER INCOME FUND

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