Innergex Power Income Fund: Production growth for first quarter 2008

Wed May 7, 8:02 AM

LONGUEUIL, QC, May 7 /CNW Telbec/ - Innergex Power Income Fund (TSX: IEF.UN) (the "Fund") releases its financial results for the first quarter ended March 31, 2008. The two recently acquired wind farms and the exceptional production at the Saint-Paulin and Chaudière facilities were key factors in the growth of the Fund's results compared to those of the corresponding period in 2007.

    
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                                                             Three-months
    For the quarters                           ------------------------------
     ended March 31                                       2008          2007
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    Production (MW-hr)                                 160,939        85,508
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    Gross operating revenues                     $13.6 million  $7.1 million
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    EBITDA                                       $10.9 million  $5.2 million
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    (Net loss) Net earnings                      $(0.8 million) $0.9 million
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    (Net loss) net earnings per unit             $       (0.03) $       0.04
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OPERATING RESULTS

Production at the Fund's power facilities in the first quarter 2008 reached 160,939 Megawatt hours (MW-hr), an 88% increase over the generated production in the first quarter 2007. The acquisition of an interest in two wind farms, concluded in December 2007, as well as the exceptional production levels at the Saint-Paulin and Chaudière facilities, which, respectively, produced 63% and 45% more than their long-term average, are determining factors in the production growth during the first quarter 2008. Production for the quarter is slightly lower than the long-term average of 164,118 MW-hr.

For the first quarter 2008, this level of production also generated an increase in gross operating revenues, which reached $13.6 million, compared to $7.1 million for the corresponding quarter in 2007. For the first quarter 2008, earnings before interest, provision for income taxes, depreciation and amortization, other revenues and expenses and non-controlling interest ("EBITDA") totalled $10.9 million, which was more than double the result of $5.2 million for the first quarter 2007.

NET EARNINGS

The Fund, however, posted a net loss of $0.8 million (net loss of $0.03 per unit) for the first quarter 2008, compared to net earnings of $0.9 million ($0.04 per unit) for the first quarter 2007. This net loss is mainly due to losses on derivative financial instruments, resulting from a general decrease in the market's reference interest rates.

NET DISTRIBUTABLE CASH AND DISTRIBUTIONS

For the first quarter 2008, distributable cash totalled $5.4 million, compared to $4.3 million for the corresponding quarter in 2007. The distribution payout ratio stands at 136%, a slight improvement over the ratio for the first quarter 2007, which was 140%. Considering seasonal fluctuations, the first quarter is generally the one during which gross operating revenues are at their lowest. However, the Fund can count on sufficient cash to cover the amounts distributed monthly to unitholders. It is important to recall that, given the nature of the Fund's activities, its results should be evaluated over a long term period.

OUTLOOK

"The Fund's results are consistent with forecasts and reflect the acquisition of an interest in two wind farms in December 2007. The Fund pursues its strategy with the acquisition announced last April 21 and, once more, will conclude an accretive acquisition for its unitholders. The agreement reached with the TD Capital Group Limited for the acquisition of IHI Hydro Inc. will allow the Fund to own 100% of the Saint-Paulin, Chaudière and Portneuf hydroelectric facilities. We are expecting to close the transaction by the end of 2008 second quarter", remarked Mr. Michel Letellier, President and CEO of Innergex Renewable Energy Inc., as manager of the Fund.

The quarterly report to unitholders, which includes the unaudited consolidated financial statements and the management's discussion and analysis, can be downloaded from the Innergex Web site at www.innergex.com and 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 total installed capacity is 339.9 MW (net interest of 197 MW). Approximately 27% of the 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 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 Fund does not undertake to update forward-looking statements.

Contacts

Mr. Jean Trudel
MBA
Vice President - Finance and Investor Relations
Innergex Renewable Energy Inc.
as Manager
(450) 928-2550
ext. 252
info@innergex.com
www.innergex.com