Innergex Power Income Fund: Increased production, operating revenues and net distributable cash in the second quarter of 2008
Wed Aug 6, 1:34 PMLONGUEUIL, QC, Aug. 6 /CNW Telbec/ - Innergex Power Income Fund (TSX: IEF.UN) (the "Fund") announces for the second quarter of 2008 a 21% increase in power generated, 29% in gross operating revenues and 26% in net distributable cash. The contribution made by the two wind farms acquired in December 2007 and the good performance of its existing hydroelectric facilities continue to drive growth at the Fund.
This second quarter was also marked by the acquisition of a minority interest held by IHI Hydro Inc. in the hydroelectric facilities at Saint-Paulin and Chaudière and three hydroelectric facilities at Portneuf. The Fund now fully owns all of its hydroelectric facilities. The Fund also refinanced its long-term debt in order to boost available cash by cutting amounts committed to future capital repayments.
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Period ended June 30 Three months Six months
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2008 2007 2008 2007
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Production (MW-hr) 244,378 201,411 405,317 286,919
Gross operating revenues
($ millions) 15.8 12.2 29.4 19.4
EBITDA ($ millions) 12.8 9.7 23.6 14.9
Net earnings (net loss)
($ millions) 7.5 (41.5) 6.7 (40.5)
Net earnings (net loss)
per unit $0.26 ($1.68) $0.23 ($1.64)
Net distributable cash
($ millions) 8.3 6.6 13.7 10.8
Distribution payout ratio 89% 91% 107% 110%
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OPERATING RESULTS
For the second quarter of 2008, the power generated by the Fund's electrical facilities reached 244,378 MW-hr, up 21% from the same period of 2007. This growth was due to the acquisition of wind farms completed in December 2007 and the good performance of the existing hydroelectric facilities. This level of production generated increasing gross operating revenues in the second quarter of 2008 amounting to $15.8 million, as compared to $12.2 million posted for the same period of 2007. Earnings before interest, provision for income taxes, depreciation and amortization, other revenues and expenses and minority interest ("EBITDA") totalled $12.8 million for the second quarter of 2008, as compared to $9.7 million for the corresponding period of 2007.
For the six-month period ended June 30, 2008, the 405,317 MW-hr of power generated represents a 41% increase over figures posted for the corresponding period in 2007. The acquisition of two wind farms in December 2007 accounted for 35% of this growth, and an excellent production record at the Fund's hydroelectric facilities contributed another 6%. EBITDA for the six-month period ended June 30, 2008 totalled $23.6 million, as compared to $14.9 million posted for the same period of 2007. The acquisition of wind farms in December 2007 played a large role in this growth.
NET EARNINGS
For the second quarter of 2008, the Fund posted net earnings of $7.5 million ($0.26 per unit), as compared to a net loss of $41.5 million (net loss of $1.68 per unit) for the corresponding quarter of 2007. It is important to remember that the Fund recorded a $47.2 million provision for future income taxes in the second quarter of 2007 following the Government of Canada's adoption of legislation under which trusts will be taxed. For the six months ended June 30, 2008, the Fund posted $6.7 million in net earnings ($0.23 per unit), as compared to the net loss of $40.5 million (net loss of $1.64 per unit) posted for the corresponding period of 2007.
NET DISTRIBUTABLE CASH AND CASH DISTRIBUTIONS
Net distributable cash for the quarter and the six months ended June 30, 2008 was $8.3 million and $13.7 million, respectively, as compared to $6.6 million and $10.8 million, respectively, for the corresponding periods of 2007. The distribution payout ratios for the second quarter and the six-month period ended June 30, 2008 were 89% and 107%, respectively, a slight improvement over ratios of 91% and 110%, respectively, reported for the corresponding periods of 2007. Given seasonal variations in water conditions, power generation from hydroelectric facilities in the second quarter can generally count on the Spring runoff.
OUTLOOK
"The Fund's earnings are growing, reflecting the benefits of having acquired interests in two wind farms in December 2007," said Michel Letellier, President and CEO of Innergex Renewable Energy Inc., the manager of the Fund. "The Fund is sticking to its strategy, and by acquiring IHI Hydro Inc. on May 29, 2008, the Fund has once again made an acquisition that benefits unitholders. The acquisition has allowed the Fund to own all of the Saint-Paulin and Chaudière facilities as well as the three facilities at Portneuf, and it represents a good fit with our growth objectives."
The quarterly report to unitholders, which includes the unaudited consolidated financial statements and management's discussion and analysis, can be downloaded from the Innergex Web site at: www.innergex.com, as well as from the SEDAR Web site at: www.sedar.com.
PROFILE
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 net installed capacity is 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.
FORWARD-LOOKING STATEMENTS
Investors should note that some statements in this press release are forward-looking and may not give full weight to all the potential risks and uncertainties. Forward-looking statements are, by their nature, subject to risks and uncertainties, and actual results, actions or events could materially differ from those set forth in the forward-looking statements. All forward-looking statements are only valid as of the date they were made. The Corporation does not undertake to update forward-looking statements except in accordance with applicable laws.
ContactsJean TrudelM.B.A.
Vice-President - Finance and Investor Relations
Innergex Renewable Energy Inc.
Manager of the Fund
(450) 928-2550
ext. 252
info@innergex.com www.innergex.com
