- Revenues of $5.5 million compared with $1.0 million in Q1 2008
- Revolving credit facility increased to $30 million and extended for a
- $13.9 million of the $16 million current portion of the debt is
reimbursed during the first quarter
- Kwoiek Creek, Montagne-Sèche, Gros-Morne I and II receive environmental
LONGUEUIL, QC, May 13 /CNW Telbec/ - Innergex Renewable Energy Inc. (TSX:
INE) (the "Corporation"), a leading Canadian developer, owner and operator of
renewable power generating facilities, releases today its operating and
financial results for its first quarter ended March 31, 2009.
Significant increase in the Corporation's revenues for the first quarter
For the first quarter of 2009, Innergex Renewable Energy generated $4.6
million in operating revenues, largely contributing to increase its total
revenues which reached $5.5 million. These results are compared with operating
revenues of $0.7 million and total revenues of $1.0 million for the same
period in 2008.
With its interest in Glen Miller (8.0 MW), and in the two new facilities
of Umbata Falls (23 MW) and Carleton (109.5 MW), the Corporation produced
60,083 MW-hr during the first quarter of 2009, while 10,647 MW-hr were
generated in the corresponding quarter of 2008. This important increase
represents the added power production of the Umbata Falls and Carleton
facilities, which both began commercial operations in November 2008. The
Corporation benefited only from the contribution of the Glen Miller
hydroelectric facility in Q1 2008.
As pointed out by Michel Letellier, President and Chief Executive Officer
of the Corporation: "The Corporation has reached an important goal by
substantially raising its total net installed capacity from 40 MW to 95 MW at
the end of 2008. We expect to increase it again, reaching a total net
installed capacity of 150 MW once both the Ashlu Creek and Fitzsimmons Creek
new facilities are in commercial operations."
Construction progressing at Ashlu Creek and Fitzsimmons Creek
The construction of the Corporation's two new facilities at Ashlu Creek
(49.9 MW) and Fitzsimmons Creek (7.5 MW) is progressing well.
Ashlu Creek: commercial operations expected to begin during Q4 2009.
During the first quarter of 2009, the Ashlu Creek project achieved a
significant milestone with the completion of the 4.4 km horizontal tunnel.
Mining of the 120-meter vertical shaft began on April 12 and is progressing as
expected, 95 % being completed. Work has also been completed on the access
roads, transmission lines, switchyard, emergency spillway and rockfill weir.
Construction activities at the intake, sluiceway and powerhouse are
essentially completed and equipment manufacturing is finished.
On March 4, 2009, the Federal government confirmed that the Ashlu Creek
project will receive incentive payments under the ecoENERGY Initiative,
provided certain conditions are met and upon the start of commercial
operations. The ecoENERGY Initiative provides for an incentive payment of $10
per MW-hr for the first ten years of operations. The Corporation evaluates
that this incentive payment should increase EBITDA by approximately $2.5
million per year for the first ten years of operations.
Fitzsimmons Creek: commercial operations expected to begin during Q4
The Fitzsimmons Creek project is progressing according to plan and on
budget. Approximately 45 % of the access roads, 30 % of the penstock, 66 % of
the cofferdams and 85 % of the emergency spillway has been completed.
Excavation at the powerhouse site is also underway.
On March 24, 2009, the Corporation has agreed on a committed term sheet
with a Canadian financial institution for a financing agreement for the
Fitzsimmons Creek project. Completion of this financing is subject to further
syndication, which is progressing.
The Fitzsimmons Creek project is eligible under the BC Hydro Standing
Offer Program and the Corporation expects to enter into a PPA with BC Hydro.
The Corporation also expects that the Fitzsimmons Creek project will be
eligible under the ecoENERGY Initiative which provides for an incentive
payment of $10 per MW-hr for the first ten years of operations.
Four development projects receive environmental approval during the first
quarter of 2009
In February of 2009, the Québec Bureau d'audiences publiques sur
l'environnement ("BAPE") (environmental public hearing office) released its
report following the hearings on the Montagne-Sèche and Gros Morne I and II
wind projects, held in September 2008, recommending a few modifications which
the Corporation is closely evaluating. Overall, the Corporation is satisfied
with the BAPE report and its release, well ahead of schedule, constitutes a
critical step in the development of these wind projects.
The Montagne-Sèche (58.5 MW) and Gros Morne I (100.5 MW) wind projects
are expected to begin commercial operations in 2011, while Gros-Morne II is
expected to begin commercial operations in 2012.
On March 19, 2009, the Kwoiek Creek hydroelectric project (49.9 MW)
achieved a significant milestone, receiving its Environmental Assessment
Certificate ("EAC") from the province of British Columbia ("BC"). The report
from BC's Environmental Assessment Office concluded that the project is not
likely to have significant adverse effects, based on the mitigation measures
and commitments included as conditions of the EAC, and is likely to generate
substantial economic spin-offs at both the local and regional level.
Construction of the Kwoiek Creek hydroelectric project is expected to begin
immediately following the completion of the ongoing permit phase and upon
closing of its project financing. The Kwoiek Creek facility is expected to
begin commercial operations in 2011.
$ 13.9 million of the debt is reimbursed during the first quarter
During the first quarter of 2009, the Corporation repaid two loans
contracted with its lenders in the Carleton project: a) the $7.3 million
Hydro-Quebec TransEnergie ("HQT") substation loan, and b) the $5.5 million
GST/PST loan. The former was reimbursed upon reception of the substation
reimbursement by HQT and the latter, upon receipt of the refund from
governmental agencies of the Federal Goods and Services Tax and Provincial
Sales Tax paid upon the purchase of the project's wind turbines. The
Corporation also paid $1.1 million of the long-term debt related to the
Carleton and Glen Miller facilities.
The Corporation closed a $30 million revolving credit facility and added
a new lender to its syndicate of lenders
Also during the first quarter of 2009, the Corporation closed a $30
million revolving credit facility that can be used for general corporate
purposes, including the issuance of letters of credit in connection with the
development, construction and operation of renewable power generating
projects. The Laurentian Bank of Canada joined the syndicate of lenders
already comprised of the Bank of Montreal and The Toronto-Dominion Bank.
On April 30, 2009, Hydro-Québec issued two requests for proposals (RFPs),
namely the 250 MW Aboriginal Wind RFP and the 250 MW Community Wind RFP
respectively. The Corporation is currently evaluating different wind projects
it will likely submit within these two RFPs.
The Corporation's unaudited consolidated financial statements and the
management's discussion and analysis, can be downloaded from the Innergex
website at www.innergex.com and from the SEDAR website at www.sedar.com.
Innergex Renewable Energy Inc. is a leading developer, owner and operator
of run-of-river 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: i) interests in three operating facilities with an aggregate net
installed capacity of 60.9 MW (gross 140.5 MW); ii) interests in two projects
under construction and five projects under development with an aggregate net
installed capacity of 197.5 MW (gross 392.3 MW) for which power purchase
agreements with public utilities have been secured or which are eligible under
the British Columbia Hydro and Power Authority Standing Offer Program; and
iii) prospective projects of more than 1,600 MW (gross expected capacity of
more than 1,800 MW). Innergex Renewable Energy Inc. also owns 16.1% of the
Innergex Power Income Fund, a publicly traded income fund listed on the
Toronto Stock Exchange under the symbol "IEF.UN", and acts as its manager
under long-term management agreements. Innergex Power Income Fund owns
interests in 12 projects in operation, with a total net installed capacity of
210 MW (gross 340 MW).
In order to inform shareholders of the Corporation as well as potential
investors on future prospects of the Corporation, sections of this news
release may contain forward-looking statements within the meaning of
securities legislation ("Forward-looking Statements"). 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 of
this news release, the estimates, forecasts, projections, expectations or
opinions of the Corporation 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 any future results or performance expressed or
implied by the Forward-looking Statements. The material risks and
uncertainties which may cause the actual results and developments to be
materially different from the current expressed expectations in this news
release include: (i) execution of strategy, (ii) capital resources, (iii)
derivative financial instruments, (iv) current economic and financial crisis,
(v) hydrology and wind regime, (vi) investment in the Fund (as hereinafter
defined), (vii) construction and design, (viii) development of new facilities,
(ix) project performance, (*) equipment failure, (xi) interest rate and
refinancing risk, (xii) financial leverage and restrictive covenants, (xiii)
separation agreement and (xiii) relationship with Hydro-Québec. Although the
Corporation 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 reader is cautioned not
to rely unduly on these Forward-looking Statements. The Forward-looking
Statements, expressed verbally or in writing, by the Corporation or by a
person acting on its behalf, are expressly qualified by this cautionary
statement. The Corporation 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: Ms. Edith Ducharme, LL.L., Director, Financial
Communications and Investor Relations, Innergex Renewable Energy Inc, (450)
928-2550, ext. 222, firstname.lastname@example.org; Mr. Jean Trudel, MBA, Vice
President - Finance and Investor Relations, Innergex Renewable Energy Inc,
(450) 928-2550, ext. 252, email@example.com