Alterra Power Announces Results for the Quarter Ended June 30, 2013

     Alterra Power Announces Results for the Quarter Ended June 30, 2013

PR Newswire

VANCOUVER, Aug. 12, 2013

(under IFRS and all amounts in US dollars unless otherwise stated)

VANCOUVER, Aug. 12,  2013 /PRNewswire/  - Alterra  Power Corp.  (TSX: AXY)  is 
pleased to report its  financial and operating results  for the three and  six 
months ended June 30,  2013. For further information  on these results  please 
see  Alterra's  Condensed  Consolidated   Interim  Financial  Statements   and 
Management's Discussion and Analysis.

Alterra consolidates 100% of the HS Orka and Soda Lake operations and accounts
for its  interests in  the Toba  Montrose  and Dokie  1 facilities  as  equity 
investments. Alterra's  results  are  sometimes disclosed  as  Alterra's  "net 
interest", which means the results that Alterra would have reported if each of
HS Orka (66.6%), Toba Montrose (40%), Dokie  1 (51%) and Soda Lake (100%)  had 
been  reported  in  accordance  with  Alterra's  actual  share  of  ownership. 
Management believes that net interest reporting provides the clearest view  of 
the Company's performance.

Highlights for the current quarter and subsequent period include:

  *Increased revenue and EBITDA (net interest): Revenue (including business
    interruption proceeds) was $22.1 million and EBITDA was $10.8 million in
    the quarter, up 5% and 12% respectively from the comparative quarter,
    primarily due to increased earnings at HS Orka and Dokie 1.
  *Reliable power generation: Alterra's net interest on power generated
    during the quarter was 315,456 MWh of clean power during the quarter,
    achieving 92% of its budgeted generation despite the Montrose hydro
    facility being offline the entire quarter for repairs. Generation would
    have been 103% of budget had the Montrose plant not been offline. Total
    generation from plants operated by Alterra was 544,620 MWh.
  *Mid-year distributions from projects: Mid-year  dividends were declared
    at both Toba Montrose and Dokie 1 totalling $4.4 million in the quarter,
    with Alterra's share being $2.0 million. Blue Lagoon also declared a
    dividend during the quarter with HS Orka's share being $1.8 million.
  *Reduction in overheads: General and administrative expenses declined by
    32% against the comparative quarter primarily due to lower recurring
    corporate overhead costs and fluctuations in the pension liability.
  *Montrose rockslide repair update: Repair work has progressed and return to
    service is now expected in the second half of 2013. Property and business
    insurance proceeds have substantially funded the repairs.
  *Completion of South America partnership: Alterra finalized its partnership
    with Energy Development Corporation ("EDC") to further geothermal projects
    in Chile and Peru, as EDC completed its due diligence, and completed
    definitive documentation.
  *Jimmie Creek project development: Subsequent to the quarter ended June 30,
    2013 a Limited Notice to Proceed was signed with SNC Lavalin on the Upper
    Toba Valley (Jimmie Creek) Hydro project in British Columbia.
  *New development opportunities: Alterra continues to pursue new project
    options and subsequent to the quarter has entered into an exclusivity
    agreement for a wind project in the United States.

John Carson, Alterra's CEO, said, "We're  pleased to report solid progress  on 
the  Montrose  repair,  accompanied  by   another  quarter  of  strong   asset 
performance and  reductions  in administrative  costs.  I'm confident  we  are 
well-positioned  for  new  opportunities  as  well  as  meeting  the   current 
challenges before us in the remainder of 2013 and into 2014."

Financial Results

The following  table  shows  key  financial  information  extracted  from  the 
consolidated results.

(expressed in thousands of US dollars, except for generation)

                                                                      
For the
three months
ending June
30, 2013                                                                          
                            Toba      Dokie      Soda     Exploration     Net
               HS Orka    Montrose      1        Lake      and Head     Interest    Consolidated
             (66.6%)    (40%)     (51%)    (100%)     Office      Total      Results
Generation
(MWh)         202,604     63,975   32,885   15,992             -   315,456        320,202
Total
Revenue      $   9,373  $    6,233 $  3,535 $  1,022 $           - $   20,163 $       15,096
Business
Interruption
Insurance
Proceeds            -      1,936        -        -             -     1,936              -
Gross Profit
(Loss)          1,688      4,117    1,321    (539)             -     6,587          1,996
EBITDA ^(a)     3,341      7,059    2,018       59       (1,712)    10,765         12,440
                                                                                 
                                                                                 
For the
three months
ending June
30, 2012                                                                          
                            Toba      Dokie      Soda     Exploration     Net
               HS Orka    Montrose      1        Lake      and Head     Interest    Consolidated
             (66.6%)    (40%)     (51%)    (100%)     Office      Total      Results
Generation
(MWh)         191,180     85,271   33,854   15,502             -   325,807        302,559
Total                                      
Revenue      $  8,837 $   8,222 $  3,110 $   974 $          - $   21,143 $      14,242
Gross Profit
(Loss)          2,491      5,679      561    (614)             -     8,117          3,127
EBITDA ^(a)     3,617      6,947    1,356       80       (2,463)     9,537         11,350
                                                                                 

Note (a) -   Here  and elsewhere,  EBITDA is  defined by  Alterra as  earnings 
before interest, taxes,  foreign exchange, depreciation  and amortization,  as 
well as  before deductions  for change  in  fair value  of bonds  payable  and 
derivatives, foreign exchange gain (loss), write off of development costs  and 
other income (expense) except business interruption proceeds, amortization  of 
below market contracts, and  value assigned to options  granted less share  of 
income (loss) of  equity accounted  investees plus the  Company's interest  in 
EBITDA of its equity accounted investees. Alterra discloses EBITDA as it is  a 
measure used by analysts and by management to evaluate Alterra's  performance. 
As EBITDA is a non-IFRS measure, it may not be comparable to EBITDA calculated
by others.  In addition,  as EBITDA  is  not a  substitute for  net  earnings, 
readers should consider net earnings in evaluating Alterra's performance.  For 
a reconciliation of  consolidated EBITDA to  Alterra's consolidated  financial 
statements refer to the Company's Management's Discussion and Analysis for the
three and six months ended June 30, 2013.

Consolidated Results

Revenue was up 6%  for the quarter  ended June 30,  2013 from the  comparative 
quarter ($15.1 million compared to $14.2 million) due to increased  generation 
at HS Orka.  Gross profit fell  by 36%  as a result  of increased  maintenance 
spend on two producing wells at HS Orka.

Alterra recorded a net loss of  $2.3 million for the current quarter  compared 
to a net loss of $9.7 million  for the comparative quarter, an improvement  of 
$7.4 million. Non-cash items contributing to this result include:

  *A positive change in the fair value of bonds and derivatives of $5.4
    million, related primarily to fluctuation in forecasted aluminum prices.
  *A negative movement of $4.2 million related to foreign exchange ($2.4
    million loss in the quarter versus a $1.8 million gain in the comparative
    quarter.)

Alterra had consolidated cash and cash equivalents of $43.5 million at the end
of the period, up from $39.2 million  at December 31, 2012, with the  increase 
primarily related to draws on the Company's revolving line of credit.

Net Interest Results

Alterra's net interest in generation, revenue and EBITDA increased quarter  on 
quarter (including  proforma results  from Montrose  Creek) due  to new  sales 
contracts at HS  Orka and  the timing  of wind generation  at Dokie  1 as  the 
pricing of the power purchase agreement fluctuates month over month.

Iceland Operations (66.6% Interest)

The 100  MW Reykjanes  plant  generated 120,729  MWh  of electricity  (96%  of 
budget), and the 72  MW Svartsengi plant generated  81,875 MWh of  electricity 
(112% of budget), and continued to supply thermal energy for district heating.
The work-over  of  an existing  well  was  completed at  HS  Orka's  Reykjanes 
facility during the second quarter  and initial indications are positive  with 
respect to increased capacity.

Toba Montrose Operations (40% Interest)

The 146 MW East  Toba River facility generated  63,975 MWh of electricity,  or 
110% of forecasted generation. Although the Montrose facility was offline  for 
repairs, the  measured  water  flow  for  purposes  of  business  interruption 
insurance payments (attributed generation) is also 110% of budget.

On December  13, 2012  a naturally  occurring rockslide  damaged a  300  meter 
section of the five kilometer penstock  (which supplies water from the  intake 
to the power generating plant) at the Montrose facility. The penstock  repairs 
at the Montrose hydro  facility continued in Q2  2013 with excavation for  the 
replacement of the 300 meter penstock segment and delivery of the  replacement 
penstock to the site.  Installation of the  replacement penstock commenced  in 
July 2013 and the Montrose hydro facility is expected to be back in service in
the second  half of  2013. Property  and business  interruption proceeds  were 
received by the insurer during the quarter.

Dokie 1 Operations (51% Interest)

The 144 MW  Dokie 1  wind farm  generated 32,885  MWh of  electricity for  the 
quarter, or 95% of budget. Revenue for the current quarter increased over the
comparative quarter due to the timing of wind generation as pricing fluctuates
month to month in the power purchase agreement

Soda Lake Operations (100% Interest)

The 15 MW Soda Lake geothermal  plant generated 15,992 MWh of electricity  for 
the current quarter, or 96% of budget.

Expansion and Development Projects

Alterra has  agreed  to purchase  for  approximately  $7.2 million  a  10%  of 
interest in a 50 MW solar generation project built in Ontario by First  Solar, 
Inc., ABW Solar. Alterra will serve as the managing partner for ABW Solar. In
April 2013 the project entered commercial operations and Alterra together with
our partner General Electric  Energy Financial Services  and First Solar  Inc. 
are currently in late-stage  negotiations with lenders  for the required  debt 
financing and expect the project to close in the third quarter of 2013.

Alterra is currently finalizing plant design for the Jimmie Creek project  and 
in July 2013  signed a limited  notice to  proceed with SNC  Lavalin who  will 
provide further pre-construction services.  Alterra also renegotiated  certain 
terms of the Power Purchase Agreement with BC Hydro, and expects to execute an
amendment to  the  agreement  in  the third  quarter  of  2013.  The  revised 
agreement will cover the Jimmie Creek project only, at a nameplate capacity of
62 MW  with projected  annual  firm energy  of  114 GWh  with  a May  1,  2016 
completion date.  Alterrawill examine  the  possibility of  constructing  the 
Upper Toba project at a later date under a future call for power.

Preparations continue for the two expansions at the Reykjanes plant that would
increase capacity to  180 MW  and annual average  generation by  approximately 
700,000 MWh. The key matters remaining prior to construction are concluding  a 
power purchase  agreement, obtaining  project  financing and  confirmation  of 
resource. Alterra has commenced a reinjection program at the Reykjanes  field, 
and will refine the timeline for the Reykjanes expansion pending results  from 
the program.

Alterra holds a 51% interest in a  planned expansion of the Dokie 1 wind  farm 
("Dokie 2") with projected additions to capacity  of up to 156 MW. During  the 
quarter Alterra  continued  to  collect data,  conduct  engineering  work  and 
perform other studies to complete the assessment of the project.

In July  2013  Alterra  completed  an  agreement  with  EDC  for  the  further 
development of the Mariposa project in  Chile and the Crucero, Loriscota,  and 
Tutupaca Norte concessions in Peru (Peruvian assets) on a joint basis. Under
the terms of the joint  venture agreement EDC will be  entitled to earn a  70% 
interest by funding $58.3 million in project expenditures at Mariposa and $8.0
million on the Peruvian  concessions. Subsequent project equity  contributions 
and all economic sharing would be on  a pro rata basis between the  partners. 
On completion of  the transaction control  over the Mariposa  project and  the 
Peruvian assets  were  transferred  to  EDC, and  in  subsequent  periods  the 
projects will be recorded as equity investments by Alterra.

Alterra continues to advance  other early stage  geothermal projects in  Italy 
and Peru,  including exploration  field work,  data assessment  and  continued 
community  consultations.  Alterra  also  continues  to  advance  its  British 
Columbia hydro projects in 2013 through  collection of hydrology data for  the 
Bute Inlet project and other early stage run of river and pumped storage hydro
projects. In  Iceland,  Alterra  began  an  environmental  assessment  on  the 
Bulandsvirkjun hydroelectric project.

Alterra entered  into  a  solar  partnership  with  Greenbriar  Capital  Corp. 
("Greenbriar"), AG  Solar One  in  Puerto Rico.  Subsequent to  the  quarter, 
Alterra and  Greenbriar  Capital  Corp.  mutually agreed  to  end  efforts  to 
finalize next-stage partnership arrangements.  Alterra will have no  ownership 
stake in the development project going forward, and all amounts contributed to
the partnership by Alterra will be returned.

Alterra Power will host a conference call to discuss financial and operating
results on Tuesday, August 13, 2013 at 11:30 am ET (8:30 am PT). North
American participants dial 1-888-390-0605 and International participants dial
1-416-764-8609, the conference ID is 51380004. The call will also be broadcast
live on the Internet at
http://www.newswire.ca/en/webcast/detail/1204727/1321213. The call will be
available for replay for one week after the call by dialing 1-416-764-8677 and
entering replay PIN 380004.

Cautionary Note regarding Forward-Looking Statements and Information
Certain statements included in this news release may contain information  that 
is forward-looking within  the meaning of  certain securities laws,  including 
information  and  statements  regarding  prospective  results  of  operations, 
financial position, cash flows or growth potential. These statements are based
on factors or assumptions that were applied in drawing a conclusion or  making 
a forecast or  projection, including assumptions  based on historical  trends, 
current conditions  and expected  future developments.  Since  forward-looking 
statements relate to future events and  conditions, by their very nature  they 
require making  assumptions  and  involve inherent  risks  and  uncertainties. 
Alterra cautions  that  although  it  is believed  that  the  assumptions  are 
reasonable in the circumstances,  these risks and  uncertainties give rise  to 
the  possibility  that   actual  results  may   differ  materially  from   the 
expectations set out in the forward-looking statements. Material risk  factors 
include those set out in the  management's discussion and analysis section  of 
Alterra's most recent  annual report  and quarterly report,  and in  Alterra's 
Annual Information  Form. Given  these  risks, undue  reliance should  not  be 
placed on  these forward-looking  statements,  which apply  only as  of  their 
dates. Other  than as  specifically  required by  law, Alterra  undertakes  no 
obligation to update any forward-looking statements or information to  reflect 
new information, subsequent or otherwise.











SOURCE Alterra Power Corp.

Contact:

Peter Lekich, Corporate Communications
Alterra Power Corp.
Phone: 604.235.6719
Email:info@alterrapower.ca
 
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