Run of River Power Reports Results For Third Quarter 2009
Highlights - BC Hydro said November 17, 2009 that it will begin discussions with the developers of 13 proposed hydroelectric and wind power projects that it has identified as the most cost-effective and will begin awarding contracts in December 2009. Additionally, it will offer developers of the other 34 projects the opportunity to make their proposals more cost-effective. - BC Hydro notified the Company that its 25 MW Mamquam proposal will proceed to the next stage of the 2008 Clean Power Call. - The Company continues to make progress on its 34 MW Suskwa and 60 MW Tsilhqot'in biomass development projects and intends to submit them to BC Hydro's Phase II Biomass Call, expected in 2010. Financial Summary ------------------------------------------------------------------------- ($ in thousands, except Three Months Ended Nine Months Ended per share amounts) September 30 September 30 ----------------------------------------- 2009 2008 2009 2008 ------------------------------------------------------------------------- Electricity sales 434 664 1,097 1,250 EBITDA(1) (73) 58 (476) (627) Net loss (418) (278) (1,481) (1,510) Basic and diluted loss per share (0.01) (0.00) (0.02) (0.02) Cash flow used in operations (224) (60) (908) (795) Total assets 31,485 32,422 31,485 32,422 Generation (MWh) 7,464 11,484 18,853 21,615 ------------------------------------------------------------------------- (1) EBITDA is earnings before interest, taxes, depreciation and amortization and is not a measure under Canadian Generally Accepted Accounting Principles ("GAAP") 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.
Operating Results
Electricity sales at the Brandywine Creek power facility decreased by 35% to
EBITDA in the third quarter of 2009 was negative
Subsequent to quarter end, an extraordinary outage at a BC Hydro substation led to the outage at the Company's Brandywine facility that resulted in damage to one of two generators. Although the generator is expected to be out of service for up to four months, the Company does not anticipate a significant impact on revenue as plant output is typically captured by one generator during the corresponding period. The Company's insurers are assessing the facility and repairs and business interruption are expected to be covered by insurance, subject to associated deductibles.
Non-GAAP Measures
The Company reports its financial position, results of operations and cash flows in accordance with Canadian generally accepted accounting principles ("GAAP") in Canadian dollars.
About Run of River Power Inc.
ROR Power develops renewable, sustainable energy through its portfolio of run-of-river and biomass projects in British Columbia (BC). The Company operates an Eco Logo(C) certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that generates cash flow under a 20-year contract with BC Hydro. ROR Power is well positioned for profitable growth through the company's high-quality power generation initiatives. ROR Power's total development potential, in excess of 740 MW, represents a significant opportunity to help BC meet its rising demand for clean, sustainable power and achieve energy self sufficiency by 2016.
Forward-Looking Statements
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.
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For further information: For further information: Jako Krushnisky, President and CEO, Tel: (604) 946-9232, [email protected]; Vick Dusik, Chief Financial Officer, Tel: (604) 946-9232, [email protected]
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