VANCOUVER, April 26, 2012 /CNW/ - Run of River Power Inc. ("ROR Power" or "the Company") (TSX-V: ROR) today announced financial and operating results for the year ended December 31, 2011. The consolidated financial statements and management discussion and analysis will be filed to SEDAR and posted on ROR Power's website (www.runofriverpower.com). All figures reported herein are in Canadian dollars unless otherwise stated.
Coming into 2011, Management's objectives were threefold: to reduce General and Administration ("G&A") costs of the Company, to optimize revenues from existing facilities, and maximize shareholder value through the Skookum Power Project. The Company is pleased to provide the following highlights:
- Exceeded General and Administration ("G&A") target reduction of $500,000 per year - G&A in 2011 was $685,312 lower, or 24.2% lower than the total during 2010.
- Set quarterly production record at the Brandywine hydro-electric facility - 16,206 MWh compared to previous best quarter of 12,134 MWh set in 2007 - an increase of over 33%
- Development Plan for the 25 MW Skookum Power Project was deemed complete by the Ministry of Forests, Lands and Natural Resource Operations and formally referred out to the relevant Federal and Provincial agencies and First Nations for review
- Signed an Impacts and Benefits Agreement with the Squamish First Nation for the Skookum Power Project
- Subsequent to Quarter end, entered into agreements with certain subsidiaries in the Concord Pacific group of companies to provide equity financing for the 25 MW Skookum Power Project
"Our Brandywine facility demonstrated considerable efficiency and reliability improvements allowing us to deliver our best production year since 2007" stated Richard Hopp, ROR Power's President and CEO. "We are very pleased to have secured a strong partner with Concord enabling us to build the Skookum Power Project without having to issue any additional equity."
|Period ended December 31||3 months||12 months|
|($000's except per share & generation amounts)||2011||2010||2011||2010|
Basic and diluted loss per share
Cash flow used in operations
|(1)||EBITDA is earnings before interest, taxes, depreciation and amortization and is not a measure under International Financial Reporting Standards ("IFRS") 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.|
2011 electricity sales of $2,090,225 increased $137,743 or 7.1% from 2010 sales of $1,952,482 (including $48,349 from business interruption insurance) as a direct result of an increase in electricity generated to 35,281 MWh from 32,518 MWh. The increase in electricity generation and sales is attributable to increased production at the Brandywine Creek facility due to available water and increased plant reliability.
The Corporation recorded a net loss for 2011 of $2,717,177 compared to a net loss of $7,137,720 for 2010. Year over year, the net loss improved by $4,420,543, substantially due to the write-down of biomass project development costs of $3,996,493 that occurred in 2010. The loss in 2010, before write-down, would have been $3,141,227. The improved net loss, before write down, of $424,050, or 13.5%, is primarily attributable to reduced Corporate G&A and improved operating results at the Brandywine facility offset by increased finance costs.
Funds used in operations were $1,584,520 in 2011 compared to $2,499,424 for 2010. This improvement of $914,904 was due principally to reduced Corporate G&A and improved operating results at the Brandywine facility in 2011. In addition, funding insurance repairs in advance of receiving the insurance proceeds at the Brandywine facility of approximately $400,000 in 2010 contributed to this favourable variance.
At December 31, 2011, the Company had $1.1 million in cash on hand. These cash resources will be used to carry out further development of the Mamquam watershed and future run-of-river development prospects.
The Company recently entered into agreements with certain subsidiaries in the Concord Pacific group of companies to provide equity financing for ROR Power's 25 MW Skookum Power Project as more fully described in the Financial Statements issued concurrently with this news release. Accordingly, the Company is evaluating alternatives for raising project debt to complete this project and is currently negotiating with a lender.
The Company reports its financial position, results of operations and cash flows in accordance with International Financial Reporting Standards ("IFRS").
About Run of River Power Inc.
ROR Power develops renewable, sustainable energy through its portfolio of clean energy projects. The company helps diversify BC's energy mix by providing a cleaner way to generate power and increasing the security of BC's energy supply. ROR Power operates an Eco Logo© certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that provides green power for about 4,000 homes. The company is well positioned for profitable growth through power generation initiatives that include its 25 MW Skookum Power Project, awarded an Electricity Purchase Agreement by BC Hydro in 2010. ROR Power's total development potential is approximately 600 MW.
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information:
Richard W. Hopp
President and CEO