CAPACITY ADDITIONS CONTINUE TO FUEL GROWTH
-- Production increases 21% to 386.2 GWh
-- Operating revenues increase 27% to $35.7 million
-- Adjusted EBITDA increases 39% to $25.4 million
-- Power generated reaches 84% of long-term average
LONGUEUIL, QC, May 14, 2013 /CNW Telbec/ - Innergex Renewable Energy Inc.
(TSX:INE) ("Innergex" or the "Corporation") releases its operating and
financial results for the first quarter ended March31, 2013.
"Innergex continues to benefit from well executed project development and
strategic acquisitions, that expand and diversify our operations, reducing
risks and improving cash flows", declares Michel Letellier, President and
Chief Executive Officer of the Corporation. "We remain focused on optimizing
operating efficiencies, advancing projects under construction and under permit
phase on time and on budget, and closing previously announced acquisitions",
adds Mr. Letellier.
For the periods ended March 31 2013 2012
Amounts shown are in thousands of Canadian
dollars except as noted otherwise. Restated(3)
Power generated (MWh) 386,171 319,341
Long-term average (MWh) 461,529 394,532
Operating revenues 35,688 28,069
Adjusted EBITDA(1) 25,403 18,289
Net (loss) earnings (178) 7,805
Net earnings, $ per share(2) 0.01 0.10
(1) Adjusted EBITDA is defined as operating revenues less operating
expenses, general and administrative expenses, and prospective
(2) Net earnings (loss) per share is calculated as net earnings (loss)
attributable to owners of the parent, less dividends declared on
preferred shares, divided by the weighted average number of common
(3) 2012 results have been restated to reflect the application of IFRS
First quarter results
For the three-month period ended March 31, 2013, electricity production
reached 386.2GWh, or 84% of the long-term average, compared to 81% in the
corresponding quarter last year. Low water flows in British Columbia and in
the United States were partly offset by better than anticipated water flows in
Quebec and Ontario. Wind conditions were slightly lower than anticipated at
all the wind farms except Carleton. The Stardale solar farm produced 6% less
than its long-term average due to the unusually large snow falls followed by
the extreme cold weather in January, which slowed down the removal of snow on
the solar panels.
Operating revenues increased by 27% for the quarter, due mainly to the
contribution of the Stardale solar farm (which began commercial operations in
May 2012), additional capacity of the Gros-Morne wind farm (which began
commercial operations in November 2012), and the acquisition of the Brown Lake
and Miller Creek hydroelectric facilities (which closed in October 2012).
Adjusted EBITDA increased by 39%, mainly as a result of higher operating
revenues and relatively stable operating, general, and administrative expenses.
For the first quarter of 2013, the Corporation recorded a net loss of
$0.2million, compared to net earnings of $7.8million in the corresponding
quarter last year, due mainly to a much higher unrealized net gain on
derivative financial instruments recorded in the first quarter of 2012.
Excluding the unrealized net gain and the related deferred provision for
income taxes, the loss would have been $5.0million, compared to a loss of
$17.5million in 2012.
Cash flows from operating activities
For the first quarter of 2013, cash flows generated by operating activities
totalled $12.2 million, compared to $9.4million in 2012. Higher Adjusted
EBITDA and other net revenues were partly offset by a negative variation in
non-cash operating working capital items.
New IFRS rules impacting results presentation
The application of IFRS 11 has changed the classification and subsequent
accounting of the Corporation's investments in Umbata Falls and Viger
Denonville. These facilities were classified as jointly controlled entities
under the previous standard and were accounted for using the proportionate
consolidation method; under IFRS 11, they are treated as joint ventures and
the Corporation's interests in these facilities are required to be accounted
for using the equity method.
These changes have taken effect as of January 1, 2013. As a result, all
comparative figures for the year ended December31,2012 were restated to
reflect the presentation changes arising from application of IFRS 11.
Kwoiek Creek hydroelectric facility
The construction of this facility began in the last quarter of 2011. During
the first quarter of 2013, the clearing for the transmission line was
completed and 90% of the poles were installed; the intake construction and
penstock installation were still under way. Current activities also include
assembly and installation of the turbines and generators, as well as work on
the plant's electrical equipment. Construction of this 49.9 MW facility is
progressing as scheduled and budgeted and is expected to be completed in the
last quarter of 2013.
Northwest Stave River hydroelectric facility
The construction of this facility began in the last quarter of 2011. As
planned, construction activities were halted for the winter period and resumed
at the end of March 2013. The fish habitat compensation channel and civil
engineering work at the powerhouse have been completed and the powerhouse
superstructure is nearly complete. Current activities include penstock
installation, as well as intake and switchyard construction. Construction of
this 17.5 MW facility is progressing as scheduled and budgeted and is expected
to be completed in the last quarter of 2013.
Viger-Denonville wind farm
Construction activities began in the first quarter of 2013, and currently
include wood clearing, road construction, and concrete pouring of the
substation foundation. In April 2013, the Rivière-du-Loup Regional County
Municipality and Innergex executed a term sheet for the construction and
long-term non-recourse project financing of the wind farm. The partners expect
the financing to close during the summer of 2013. Construction of this 24.6 MW
facility is progressing as scheduled and budgeted and is expected to be
completed in the last quarter of 2013.
Boulder Creek, North Creek, and Upper Lillooet hydroelectric facilities
In January 2013, an important milestone was reached when these projects
received their Environmental Assessment Certificate from the province of
British Columbia. Following receipt of the proposals from civil works
contractors and the Corporation's decision to increase the installed capacity
of the Upper Lillooet project and of the Boulder Creek project, a request for
new pricing was made to some civil works contractors. The decision regarding
the selection of turbine generator suppliers is pending. A limited notice to
proceed was issued to the transmission line contractor to move forward with
the detailed design and survey layout of the transmission line. Current
activities include ongoing consultation with stakeholders and applications for
obtaining the relevant permits.
Discussions are ongoing with BC Hydro to obtain its consent to amend the PPAs
to increase the installed capacity of the Boulder Creek and Upper Lillooet
projects, and to cancel the current version of the North Creek project.
Construction of the 25.3 MW Boulder Creek facility is expected to start in
2013 and the project is expected to reach commercial operation in 2015.
Construction of the 81.4 MW Upper Lillooet facility is expected to start in
2013 and the project is expected to reach commercial operation in 2016.
Tretheway Creek hydroelectric facility
The Corporation is evaluating the proposals from civil works contractors,
turbine and generator suppliers, and transmission line contractors. Current
activities also include hydrometric monitoring, environmental studies,
consultation with the various stakeholders and applications for obtaining the
relevant permits. Discussions are ongoing with BC Hydro to obtain the
authorization to increase the installed capacity. The Corporation is moving
ahead with some aspects of the design and geotechnical studies. Construction
of this 23.2 MW facility is expected to start in 2013 and the project is
expected to reach commercial operation in 2015.
Big Silver Creek hydroelectric facility
Proposals from civil works contractors, turbine and generator suppliers, and
transmission line contractors have been received and the Corporation is
currently evaluating these proposals. Current activities also include
hydrometric monitoring, consultation with the various stakeholders and
applications for obtaining the relevant permits. Construction of this 40.6 MW
facility is expected to start in 2013 and the project is expected to reach
commercial operation in 2016.
Dividends to preferred shareholders
On May14, 2013, the Corporation declared a dividend of $0.3125 per Series A
Preferred Share payable on July15, 2013, to Series A preferred shareholders
of record at the close of business on June 28, 2013.
On May14, 2013, the Corporation declared a dividend of $0.359375 per Series
C Preferred Share payable on July15, 2013, to Series C preferred
shareholders of record at the close of business on June 28, 2013.
Dividends to common shareholders
On May14, 2013, the Corporation declared a dividend of $0.1450 per common
share payable on July15, 2013, to common shareholders of record at the close
of business on June 28, 2013.
CONFERENCE CALL REMINDER
The Corporation will hold a conference call tomorrow, Wednesday May 15, 2013
at 10:00 a.m. EDT. The first 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 seven projects under development or under construction with an aggregate
net installed capacity of 190MW (gross 263MW), for which power purchase
agreements have been secured; and (iii) prospective projects with an aggregate
net capacity totaling 2,900 MW (gross 3,125MW). Innergex Renewable Energy
Inc. is rated BBB- by S&P and BB (high) by DBRS (unsolicited rating).
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
Non-IFRS measures disclaimer
The unaudited condensed consolidated financial statements for the three-month
period ended March31, 2013 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 earnings as determined in accordance with
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. Such Forward-Looking Information includes, without limitation,
statements with respect to the start or completion of the construction of any
of the development projects, closing of the Magpie acquisition or of the other
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:
execution of strategy; capital resources; derivative financial instruments;
availability of water flows, wind and sun light; delays and cost over-runs in
the construction and design of projects; health, safety and environmental
risks; development of new facilities; permits; project performance; equipment
failure; interest rate and refinancing risk; financial leverage and
restrictive covenants; declaration of dividends is at the discretion of the
Board; securing new power purchase agreements; senior management and key
employees; litigation; performance of major counterparties; relationship with
stakeholders; equipment supply; regulatory and political; ability to secure
appropriate land; reliance on power purchase agreements; reliance upon
transmission systems; water rental expenses; assessment of water, wind and sun
resources; dam safety; natural disasters; force majeure; foreign exchange;
insurance limits; credit rating may not reflect actual performance of the
Corporation; potential undisclosed liabilities associated with acquisitions;
integration of the facilities and projects acquired and to be acquired;
failure to realize acquisition benefits; failure to close the Magpie
hydroelectric facility acquisition and the other Hydromega hydroelectric
facilities and development projects; shared transmission and interconnection
facilities; introduction to solar photovoltaic power facility operation;
revenues from the Miller Creek facility based on the spot price of
electricity. 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 Forward-Looking Information contained herein
is made as of the date of this news release and 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 firstname.lastname@example.org
Marie-Josée Privyk, CFA, SIPC Director - Investor Relations 450 928-2550,
ext. 222 email@example.com
SOURCE: INNERGEX RENEWABLE ENERGY INC.
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