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Innergex reports third quarter 2012 results


    --  Power generated reaches 102% of long-term average for the
        quarter and 96% of long-term average for 9 months
    --  Production for the quarter 15% below last year's record level,
        but 7% higher for 9 months
    --  Operating revenues decrease 6% to $47.5M for the quarter, but
        increase 15% to $132.4M for 9 months
    --  Adjusted EBITDA decreases 8% to $37.0M for the quarter, but
        increases 14% to $102.1M for 9 months

LONGUEUIL, QC, Nov. 6, 2012 /CNW Telbec/ - Innergex Renewable Energy Inc. 
(TSX:INE) ("Innergex" or the "Corporation") today released its operating and 
financial results for the third quarter ended September30, 2012.

"While hydrology and wind conditions were good, production levels could not 
match the record levels achieved during the third quarter last year" stated 
Michel Letellier, President and Chief Executive Officer of the Corporation. 
"Hydrology, wind, and solar radiation conditions are among the few variables 
the Corporation cannot control. However, the diversification of our assets 
across geographic markets and sources of energy should enable our operating 
performance year after year to continue to track our expected long-term 
average production level" added Mr. Letellier.

OPERATING RESULTS
Amounts shown are in thousands of Canadian dollars except as noted otherwise.
                                                          
                            Three months            Nine months

For the periods ended     2012       2011       2012        2011
September 30
                                                                  

Power generated (MWh)   564,617    666,009   1,606,825   1,501,506

Long-term average (MWh) 552,852    508,301   1,667,619   1,419,399

Operating revenues       47,549     50,465     132,353     115,126

Adjusted EBITDA(1)       37,006     40,098     102,084      89,440

Net loss                  (728)   (21,598)     (4,788)    (22,702)

Net loss, $ per share    (0.01)     (0.34)      (0.04)      (0.41)

(1) Adjusted EBITDA is defined as operating revenues less operating
    expenses, general and administrative expenses and prospective
    project expenses.

Third Quarter Results

Electricity production of 564.6GWh was just slightly greater than the 
long-term average, due mainly to favourable wind conditions in Quebec and to 
better than average hydrologic conditions in British Columbia and the United 
States, which were offset by lower than anticipated hydrologic conditions in 
Quebec and Ontario. The Stardale solar farm performed above its expected 
long-term average.

Operating revenues and Adjusted EBITDA decreased by 6% and 8%, respectively 
for the quarter, due mainly to lower production at the hydroelectric 
facilities compared to last year's record level; this was partly offset by 
higher production at all wind farms, and by additional revenues from the 
addition of the Stardale solar farm, the Montagne Sèche wind farm, and Phase 
I of the Gros-Morne wind farm.

The favourable variation in net loss for the quarter is attributable mainly to 
an unrealized net gain on derivative financial instruments of $9.6 million, 
compared to an unrealized net loss of $40.5 million in 2011. The net loss for 
the quarter also reflects a realized loss on derivative financial instruments 
of $14.1 million related to the settlement of the Kwoiek Creek bond forwards. 
This loss is the result of a decrease in benchmark interest rates between the 
date the bond forwards were entered into and the settlement date, and is 
compensated by a lower fixed rate on the 39-year term loan for the Kwoiek 
Creek project. Bond forwards served to protect the economic value of the 
project until financing was put in place. Excluding these items and the 
related deferred income tax recoveries, earnings for the quarter would have 
been $2.7million (compared to earnings of $8.0 million in 2011).

Nine-Month Results

For the nine-month period ended September30, 2012, electricity production 
reached 1,607GWh, or 96% of the long-term average of 1,668GWh, due mainly 
to low water flows at all Ontario facilities and at most of the Quebec and 
British Columbia facilities. While wind conditions were better than 
anticipated at most wind farms, electricity produced from wind was affected by 
lower-than-expected wind conditions at Carleton, as well as required repairs 
at Gros-Morne during the first quarter. The United States facility and the 
Stardale solar farm performed above their long-term average.

For the nine-month period ended September30, 2012, operating revenues and 
Adjusted EBITDA increased 15% and 14%, respectively, due mainly to the 
additional revenues from the Stardale solar farm, the Montagne Sèche wind 
farm, and PhaseI of the Gros-Morne wind farm. The addition of six operating 
facilities as part of the acquisition of Cloudworks Energy Inc. in April 2011 
also explains these increases.

The favourable variation in net loss for the nine-month period is attributable 
mainly to an unrealized net gain on derivative financial instruments of $2.6 
million, compared to an unrealized net loss of $41.9 million in 2011. The net 
loss for the period also reflects a realized loss on derivative financial 
instruments of $14.1 million related to the settlement of the Kwoiek Creek 
bond forwards, as explained above. Excluding these items and the related 
deferred income tax recoveries, earnings for the nine-month period would 
have been $3.8million (compared to earnings of $7.9 million in 2011).

Cash Flows from Operating Activities

For the nine-month period ended September 30, 2012, cash flows generated by 
operating activities totalled $49.4 million ($33.6million in 2011). This 
increase is due primarily to a $26.8 million increase in changes in non-cash 
operating working capital items and a $12.6 million increase in Adjusted 
EBITDA, partly offset by a $12.0 million increase in interest paid and a 
$14.1million realized loss on derivative financial instruments.

DEVELOPMENT PROJECTS

Kwoiek Creek Hydroelectric Facility
The construction of this hydroelectric facility began in the last quarter of 
2011. Construction is progressing as scheduled and budgeted. By the end of 
the third quarter of 2012, the intake diversion channel was completed; the 
intake construction and the erection of the powerhouse steel superstructure 
were under way; and the transmission line construction and penstock 
installation were ongoing. Current activities also include construction of the 
fish habitat compensation channel. Construction of this facility is expected 
to be completed in the last quarter of 2013.

Last July, the Corporation also secured non-recourse construction and term 
project financing of $168.5million for the Kwoiek Creek project. The 
financing was arranged with a group of life insurance companies.

Northwest Stave River Hydroelectric Facility
The construction of this hydroelectric facility began in the last quarter of 
2011. Construction is progressing as scheduled and budgeted. By the end of the 
third quarter of 2012, concrete work at the powerhouse was nearly completed 
and the fish habitat compensation construction was completed. The fish habitat 
compensation was being tested and revegetated and the penstock installation, 
intake, cofferdam, and diversion work were all ongoing and progressing as 
planned. Construction of this facility is expected to be completed in the last 
quarter of 2013.

Viger-Denonville Wind Farm
In the third quarter of 2012, the Ministère du Développement durable, de 
l'Environnement et des Parcs ("MDDEP") confirmed that public hearing would not 
be required for the project. As such, Viger-Denonville expects to receive the 
government decree in the first quarter of 2013. The notice to proceed was 
issued and a purchase order for the procurement of the main power transformer 
was also executed during the period. Current activities include selecting the 
engineering, procurement and construction contractor. The Corporation expects 
to start construction of the Viger-Denonville project in early2013.

Boulder Creek, North Creek, and Upper Lillooet Hydroelectric Facilities
In the third quarter of 2012, RFPs to select the turbines supplier and civil 
works contractor were issued. Current activities include review of the 
Environmental Assessment Application by federal and provincial governments, 
ongoing consultation with stakeholders and applications for obtaining the 
relevant permits. The Corporation expects to start construction on the Boulder 
Creek and Upper Lillooet projects in 2013 and on the North Creek project in 
2014.

Tretheway Creek and Big Silver-Shovel Creek Hydroelectric Facilities
Current activities include hydrometric monitoring, environmental studies, 
consultation with the various stakeholders, applications for obtaining the 
relevant permits and preliminary engineering. An important milestone was 
reached when the projects received Environmental Assessment Certificates from 
the British Columbia Ministry of Environment and Ministry of Energy, Mines and 
Natural Gas on August 20, 2012. The Corporation expects to start construction 
on these projects in 2013.

ACQUISITIONS IN PROGRESS

Magpie hydroelectric facility in Quebec
On July 26, 2012, the Corporation announced that it had signed a purchase and 
sale agreement to acquire from Hydromega Group of Companies its 70% interest 
in the 40.6MW Magpie facility located in the Minganie RCM, in Northeastern 
Quebec. Closing procedures are progressing well, albeit slowly, and no 
specific closing date can be given at this time. The Corporation is also 
working with Hydromega towards completing the other acquisitions pursuant to 
the letter of intent that was signed at the same time.

SUBSEQUENT EVENTS

Termination of an Agreement to Acquire a Wind Energy Project in British 
Columbia 
On October 1, 2012, the Corporation announced that it had terminated its 
agreement to acquire the 77MW Wildmare wind energy project located in 
British Columbia, Canada. Despite the efforts of both parties, several 
conditions of closing were not met by the prescribed closing date of September 
30, 2012. The Corporation considered each of these conditions to be essential 
to the successful completion of the project. After careful consideration, the 
Corporation decided not to extend the closing date because it strongly 
believed that doing so would not change the outcome within an acceptable 
period of time.

Official inauguration of the Stardale Solar Farm
On October 4, 2012, Innergex celebrated the inauguration of its Stardale solar 
farm during an official ceremony with the Honourable Chris Bentley, Minister 
of Energy for the Government of Ontario, Grant Crack, MPP for 
Glengarry-Prescott-Russell, and Robert Kirby, Mayor of East Hawkesbury 
Township.

Closing of the Acquisition of Two Operating Hydroelectric Facilities in 
British Columbia 
On October 12, 2012, the Corporation announced that it had completed the 
previously announced acquisition of the Brown Lake and Miller Creek 
run-of-river hydroelectric facilities located in British Columbia, Canada, for 
a final purchase price of $68.6million. Brown Lake is a 7.2 MW facility 
with an average annual production of 51,800 MWh. The electricity it produces 
is sold to BC Hydro under a power purchase agreement which expires in 2016. 
The Corporation expects to double the plant's installed capacity to 14.4 MW 
and increase its expected average annual production by 27,000 MWh for an 
additional investment of approximately $20.0 million. Miller Creek is a 33 MW 
facility with an average annual production of 97,900 MWh. The electricity it 
produces is sold to BC Hydro under a power purchase agreement which expires in 
2023. The Corporation expects to upgrade the penstock and water intake which 
should increase the plant's expected average annual production by 4,895 MWh 
and reduce operating costs, for an additional investment of approximately $8.5 
million. However, this capital expenditure program, which was initially 
expected to occur in the fall of 2012, has been postponed to the fall of 2013, 
given the longer-than-expected closing process and seasonal constraints.

DIVIDEND DECLARATION

Dividends to Preferred Shareholders
On November 6, 2012, the Corporation declared a dividend of $0.3125 per Series 
A Preferred Share payable on January15,2013, to Series A preferred 
shareholders of record at the close of business on December 31, 2012.

Dividends to Common Shareholders
On November 6, 2012, the Corporation declared a dividend of $0.1450 per common 
share payable on January15,2013, to common shareholders of record at the 
close of business on December 31, 2012.

CONFERENCE CALL REMINDER

The Corporation will hold a conference call tomorrow, Wednesday November 7, 
2012 at 10:00 a.m. ET. The third quarter results will be presented by Mr. 
Michel Letellier, President and Chief Executive Officer of Innergex and by 
Mr.JeanTrudel, Chief Investment Officer and Senior Vice President - 
Communications. Investors and financial analysts are invited to access the 
conference call by dialing 647427-7450 or 1888231-8191. Media and the 
public may also access this conference call, on a listen-only mode. A replay 
of the conference call will be available later the same day on the 
Corporation's website at www.innergex.com.

About Innergex Renewable Energy Inc.
Innergex Renewable Energy Inc. (TSX: INE) is a leading Canadian independent 
renewable power producer. Active since 1990, the Company develops, owns, and 
operates run-of-river hydroelectric facilities, wind farms, and solar 
photovoltaic farms and carries out its operations in Quebec, Ontario, British 
Columbia, and Idaho, USA. Its portfolio of assets currently consists of: 
(i)interests in 28 operating facilities with an aggregate net installed 
capacity of 577MW (gross 1,031MW), including 22 hydroelectric operating 
facilities, five wind farms, and one solar photovoltaic farm; (ii) interests 
in eight projects under development or under construction with an aggregate 
net installed capacity of 188MW (gross 263MW), for which power purchase 
agreements have been secured; and (iii) prospective projects with an aggregate 
net capacity totaling 2,904 MW (gross 3,127MW). Innergex Renewable Energy 
Inc. is rated BBB- by S&P and BBB (low) by DBRS.

The Corporation's strategy for building shareholder value is to develop or 
acquire high-quality facilities generating sustainable cash flows and 
providing a high return on invested capital, and to distribute a stable 
dividend.

Non-IFRS Measures Disclaimer

The consolidated financial statements for the three-month and nine-month 
periods ended September30, 2012 have been prepared in accordance with 
International Financial Reporting Standards ("IFRS").

However, some measures referred to in this news release are not recognized 
measures under IFRS, and therefore may not be comparable to those presented by 
other issuers. Innergex believes that these indicators are important, as they 
provide management and the reader with additional information about its 
production and cash generation capabilities, and facilitate the comparison of 
results over different periods. Adjusted EBITDA is not a measure recognized by 
IFRS and has no standardized meaning prescribed by IFRS. References in this 
news release to "Adjusted EBITDA" are to operating revenues less operating 
expenses, general and administrative expenses and prospective project 
expenses. Investors are cautioned that these non-IFRS measures should not be 
construed as an alternative to net income as determined in accordance with 
IFRS.

Forward-Looking Information Disclaimer

In order to inform shareholders and potential investors about the 
Corporation's future prospects, this news release may contain forward-looking 
information within the meaning of securities legislation ("Forward-Looking 
Information"). Forward-Looking Information can generally be identified by the 
use of words and phrases, such as "about", "approximate", "potential", "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.

The Forward-Looking Information includes forward-looking financial information 
or financial outlook, within the meaning of securities laws, such as projected 
revenues, projected construction costs, or approximate purchase price to 
inform investors and shareholders of the potential financial impact of 
recently announced acquisitions or expected results; such information may not 
be appropriate for other purposes.

Forward-Looking Information represents, 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 Information 
involves 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 Information. 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, without limitation: (i) 
execution of strategy; (ii) capital resources; (iii) derivative financial 
instruments; (iv) availability of water flows, wind and sun light; (v) failure 
to close the recently announced transactions; (vi) construction and design; 
(vii) development of new facilities; (viii) project performance; (ix) permits; 
* equipment failure; (xi) health, safety and environmental risks; (xii) 
interest rate and refinancing risk; (xiii) financial leverage and restrictive 
covenants; and (xiv) relationship with public utilities. Although the 
Corporation believes that the expectations instigated by the Forward-Looking 
Information are based on reasonable and valid hypotheses, there is a risk that 
the Forward-looking Information may be incorrect. The reader is cautioned not 
to rely unduly on this Forward-Looking Information. The Forward-Looking 
Information expressed verbally or in writing, by the Corporation or by a 
person acting on its behalf, is expressly qualified by this cautionary 
statement. The Corporation does not undertake any obligation to update or 
revise any Forward-Looking Information, whether as a result of events or 
circumstances occurring after the date hereof, unless required by legislation.

Jean Trudel, MBA Chief Investment Officer and Senior Vice President - 
Communications 450 928-2550, ext. 252 jtrudel@innergex.com

Marie-Josée Privyk, CFA Director - Investor Relations 450 928-2550, ext. 222 
mjprivyk@innergex.com

www.innergex.com

SOURCE: INNERGEX RENEWABLE ENERGY INC.

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CO: INNERGEX RENEWABLE ENERGY INC.
ST: Quebec
NI: UTI ERN DIV CONF 

-0- Nov/06/2012 19:50 GMT