Innergex reports third quarter 2013 results

STRONG RESULTS BENEFIT FROM RESOURCE AVAILABILITY AND CAPACITY ADDITIONS 


    --  Production increases 26% for the quarter, and 20% for 9 months
    --  Operating revenues increase 23% to $58.0 million for the
        quarter, and 21% to $156.9 million for 9 months
    --  Adjusted EBITDA increases 27% to $46.7 million for the quarter,
        and 24% to $123.4 million for 9 months
    --  Power generated reaches 106% of long-term average for the
        quarter, and 100% for 9 months
    --  Construction begins at three hydroelectric facilities in BC in
        October
    --  The Kwoiek Creek hydroelectric facility begins producing
        electricity at the end of October

LONGUEUIL, QC, Nov. 5, 2013 /CNW Telbec/ - Innergex Renewable Energy Inc. 
(TSX:INE) ("Innergex" or the "Corporation") releases its operating and 
financial results for the third quarter ended September30, 2013.

"Year-to-date results reflect the benefits of our geographic diversification 
and the complementarity of our renewable sources of energy. The Kwoiek Creek 
hydroelectric facility in British Columbia began producing electricity in 
October. We have also begun the commissioning process as planned for the 
Northwest Stave River hydroelectric facility in British Columbia and the 
Viger-Denonville wind farm in Quebec. Furthermore, we are very pleased to have 
begun construction on the Upper Lillooet River, Boulder Creek and Tretheway 
Creek hydroelectric projects in British Columbia", declares Michel Letellier, 
President and Chief Executive Officer of the Corporation.

OPERATING RESULTS
                              Three months ended     Nine months ended
                                 September 30           September 30

Amounts shown are in
thousands of Canadian dollars                     
except as noted otherwise.      2013     2012(3)      2013     2012(3)
                                                                      

Power generated (MWh)         706,496    559,383   1,885,207 1,573,379

Long-term average (MWh)       665,285    542,408   1,893,775 1,630,257

Operating revenues             58,039     47,109     156,894   129,538

Adjusted EBITDA(1)             46,688     36,652     123,351    99,545

Net earnings (loss)            11,147      (728)      42,008   (4,788)

Net earnings (loss), $ per
share(2)                         0.09     (0.01)        0.38    (0.04)

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

(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
    shares outstanding.

(3) 2012 results have been restated to reflect the application of IFRS
    11.

Third quarter results

For the three-month period ended September30, 2013, electricity production 
reached 706.5GWh, or 106% of the long-term average, compared to 103% in the 
corresponding quarter last year. Production levels are attributable to 
above-average water flows across Canada and especially in Quebec and Ontario, 
partly offset by below-average water flows in the United States. While water 
flows were also above-average at most facilities in British Columbia, 
production levels were affected by a shutdown of Miller Creek for a capital 
improvement program of approximately $7.0million that was planned at the 
time this facility was acquired. Wind conditions were better-than-average at 
all of the Corporation's wind farms. The Stardale solar farm also benefited 
from better-than-average solar irradiation.

Operating revenues increased by 23% for the quarter, due mainly to 
better-than-average production at most of the Corporation's facilities and to 
contributions from the acquisition of the Brown Lake and Miller Creek 
hydroelectric facilities in October 2012, the addition of capacity at the 
Gros-Morne wind farm in November 2012 and the acquisition of the Magpie 
hydroelectric facility in July 2013. Adjusted EBITDA increased by 27%, due 
mainly to the reasons mentioned above and to lesser increases in operating and 
general and administrative expenses.

For the third quarter of 2013, the Corporation recorded net earnings of 
$11.1million, compared with a net loss of $0.7million for the same period 
last year, due mainly to the reasons mentioned above and to a realized net 
loss on the settlement of the Kwoiek Creek bond forward contracts during the 
third quarter of 2012, partly offset by a lower unrealized net gain on 
derivative financial instruments during the third quarter of 2013, compared 
with the same period last year. Excluding the unrealized net gains and 
realized net loss on derivative financial instruments and the related income 
taxes, the net earnings for the three-month period ended September30, 2013 
would have been $9.4million, compared with net earnings of $2.7million in 
2012.

Nine-month results

For the nine-month period ended September30, 2013, electricity production 
reached 1,885.2GWh, or virtually 100% of the long-term average, compared to 
97% in the corresponding period last year. In Quebec and Ontario, water flows 
have remained better than average since the beginning of the year. In British 
Columbia, above-average water flows at most facilities in the second and third 
quarter have only partly compensated for below-average hydrology in the first 
quarter, while production levels were also affected by a shutdown of Miller 
Creek for a capital improvement program that was planned at the time this 
facility was acquired. In the United States, water flows remained below 
average in the first and third quarters and slightly above average in the 
second quarter. Above-average wind conditions during the third quarter offset 
lower-than-average wind conditions during the first and second quarters, with 
the notable exceptions of Gros-Morne, which also had above-average production 
during the second quarter, and Carleton, which has had above-average 
production since the beginning of the year. The Stardale solar farm production 
was slightly above its long-term average, as better-than-average solar 
irradiation in the second and third quarters have compensated for lower 
production in the first quarter caused by unusually large snowfalls and 
extremely cold weather that slowed the removal of snow from the solar panels.

Operating revenues increased by 21% during the first nine months of the year, 
due mainly to contributions from the commissioning of the Stardale solar farm 
in May 2012, the acquisition of the Brown Lake and Miller Creek hydroelectric 
facilities in October 2012, additional capacity at the Gros-Morne wind farm 
since November 2012 and the acquisition of the Magpie hydroelectric facility 
in July2013. Adjusted EBITDA increased by 24%, due mainly to the reasons 
mentioned above and to lesser increases in general and administrative expenses 
and lower prospective project expenses.

For the first nine months of 2013, the Corporation recorded net earnings of 
$42.0 million, compared to a net loss of $4.8million in the corresponding 
period last year, due mainly to the reasons mentioned above as well as to a 
higher unrealized net gain on derivative financial instruments and a lower 
realized net loss on the settlement of bond forward contracts than in the same 
period last year. Excluding the realized net losses and the unrealized net 
gains on derivative financial instruments and the related income taxes, the 
net earnings for the nine-month period ended September30, 2013 would have 
been $19.6million, compared with net earnings of $3.8million in 2012.

Cash flows from operating activities

For the nine-month period ended September30, 2013, cash flows generated by 
operating activities totalled $86.8 million ($48.8million in 2012). This 
increase is due primarily to a $23.8million increase in Adjusted EBITDA , a 
positive net variation of $10.9million in the realized loss on derivative 
financial instruments and a positive net variation of $3.9million in 
non-cash operating working capital items.

DEVELOPMENT PROJECTS

Kwoiek Creek hydroelectric facility
The construction of hydroelectric facility began in the last quarter of 2011. 
During the third quarter, installation of the intake and penstock and 
construction of the powerhouse were completed, the interconnection was 
finalized, the transmission line was energized and the turbines were wet 
commissioned. Although this 49.9MW facility has begun producing 
electricity, official commercial operation is expected to begin in November 
and will be dependent on water flows sufficient to meet the minimum production 
requirements stipulated under the power purchase agreement with BC Hydro.

Northwest Stave River hydroelectric facility
The construction of this hydroelectric facility began in the last quarter of 
2011. Currently, installation of the intake and penstock and construction of 
the powerhouse have been completed, the interconnection was finalized and the 
transmission line was energized. Commissioning activities have begun and will 
continue throughout the fourth quarter. The construction of this 17.5MW 
facility is progressing as scheduled and budgeted. Commercial operation is 
expected to begin during December and will be dependent on water flows.

Viger-Denonville wind farm
The construction of this wind farm began in the first quarter of 2013. 
Currently, the collector system and substation have been completed, the 
substation was energized and all 12 turbines have been erected. Also, on 
August 7, 2013, Viger-Denonville, L.P. closed a $61.7million long-term 
non-recourse project financing for this project. The construction of this 
24.6MW facility is progressing as scheduled and budgeted. Commercial 
operation is expected to begin before the end of 2013.

Boulder Creek, North Creek, and Upper Lillooet hydroelectric facilities 
The construction of the 81.4MW Upper Lillooet River and 25.3MW Boulder 
Creek facilities began in October2013, upon receipt of their leave to 
commence construction for the transmission line from the provincial 
government. The engineering, procurement and construction contractors and 
turbine suppliers have been selected. Clearing activities have begun at both 
sites, construction site mobilization is underway at Upper Lillooet River and 
access is being secured at Boulder Creek. Discussions are ongoing with BC 
Hydro to obtain its consentto amend the power purchase agreements to 
increase the installed capacity of the Upper Lillooet River and Boulder Creek 
projects and to cancel the North Creek project. Construction of these 
facilities is progressing as scheduled and budgeted.

Tretheway Creek hydroelectric facility
The construction of this hydroelectric facility began in October2013, upon 
receipt of the leave to commence construction from the provincial government. 
Both the engineering, procurement and construction contractor and turbine 
supplier have been selected. Clearing activities have begun and construction 
site mobilization is underway. Construction of this 23.3MW facility is 
progressing as scheduled and budgeted.

Big Silver Creek hydroelectric facility
The project has received its land tenure and water licencefrom the 
provincial government.The remaining permits are in the process of being 
obtained and present no technical obstacles. The Corporation is currently 
negotiating with civil works contractors, turbine and generator suppliers and 
transmission line contractors to obtain bids that are in line with expected 
project costs. Since a leave to commence construction will not be obtained 
prior to retaining an engineering, procurement and construction contractor, 
construction for this 40.6MW project is now expected to begin in the spring 
of 2014; however, the Corporation does not expect this to have any impact on 
the commissioning date of 2016.

Mesgi'g Ugju's'n ("MU") wind farm
In May 2013, as part of its procurement plans for new wind energy, the Quebec 
government allocated 150MW for a wind energy project to the Mi'gmaq 
communities of Quebec, with whom Innergex has a partnership.The partners 
will share in the distributions from the project in varying proportions, based 
in part on their initial equity investment. Initially, the Corporation expects 
to fund a majority of the equity investment required for this project; as a 
result, it expects to receive approximately 75% of the project's cash flows 
during the first year. However, during the first 15years of operation, the 
Corporation's partner will have the right to gradually increase its equity 
investment in the project up to 65% (by purchasing portions of the 
Corporation's equity at a price based on the present value of future cash 
flows using a predetermined rate of return) and therefore receive a higher 
proportion of cash flows. In any event, starting in the 16th year, the 
Corporation will receive no less than 35% and no more than 40% of the 
project's annual cash flows for the remaining life of the project. The 
partners are in the process of negotiating the terms of a long-term power 
purchase agreement with Hydro-Québec Distribution. They expect to sign this 
power purchase agreement shortly. The environmental assessment for the project 
has been completed and submitted to the Ministry of Sustainable Development, 
Environment, Wildlife and Parks. The partners expect to start construction on 
this project in 2015. The start of commercial operation is expected to be in 
2016 or 2017.

DIVIDEND DECLARATION

Dividends to preferred shareholders
On November5, 2013, the Corporation declared a dividend of $0.3125 per 
Series A preferred share payable on January15,2014, to Series A preferred 
shareholders of record at the close of business on December31, 2013.

On November5, 2013, the Corporation declared a dividend of $0.359375 per 
Series C preferred share payable on January15, 2014, to Series C preferred 
shareholders of record at the close of business on December31, 2013.

Dividends to common shareholders
On November5, 2013, the Corporation declared a dividend of $0.145 per common 
share payable on January15, 2014, to common shareholders of record at the 
close of business on December31, 2013.

CONFERENCE CALL REMINDER AND NEW TIME

The Corporation will hold a conference call tomorrow, Wednesday November 6, 
2013 at 11:00 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.

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 and 
British Columbia and in Idaho, USA. Its portfolio of assets currently consists 
of: (i)interests in 29 operating facilities with an aggregate net installed 
capacity of 617MW (gross 1,072MW), including 23 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 265MW (gross 413MW), for which power purchase 
agreements have been secured; and (iii) prospective projects with an aggregate 
net capacity totaling 2,900MW (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 
dividend.

Non-IFRS measures disclaimer

The consolidated financial statements for the three- and nine-month periods 
ended September 30, 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 
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. Such Forward-Looking Information includes, without limitation, 
statements with respect to the start or completion of the construction of any 
of the development projects.

The Forward-Looking Information includes forward-looking financial information 
or financial outlook, within the meaning of securities laws, such as expected 
production, operating revenues, total project costs, adjusted EBITDA or 
results to inform investors and shareholders of the potential financial impact 
of development projects if and when they will reach commercial operation 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: the 
ability of the Corporation to execute its strategy; the ability to access 
sufficient capital resources; liquidity risks related to derivative financial 
instruments; changes in hydrology, wind regime and solar irradiation; delays 
and cost overruns in the construction and design of projects; health, safety 
and environmental risks; uncertainty relating to development of new 
facilities; obtainment of permits; variability of project performance and 
related penalties; equipment failure; interest rate fluctuation and 
refinancing risk; financial leverage and restrictive covenants governing 
current and future indebtedness; declaration of dividends at the discretion of 
the board; securing new power purchase agreements; the ability to retain 
senior management and key employees; litigation; performance of major 
counterparties; relationship with stakeholders; equipment supply; changes to 
regulatory and political factors; the ability to secure appropriate land; 
reliance on power purchase agreements; reliance upon transmission systems; 
water and land rental expense; assessment of water, wind and sun resources and 
associated electricity production; dam safety; natural disasters and force 
majeure; foreign exchange fluctuations; sufficiency of insurance coverage; a 
credit rating that 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 
the anticipated benefits of acquisitions; fluctuation of the revenues from the 
Miller Creek facility based on the electricity spot price; the inability to 
execute a definitive agreement and close the acquisition of the Hydromega 
hydroelectric facilities and development project; shared transmission and 
interconnection infrastructure; and the introduction of solar photovoltaic 
power facility operation. The Forward-Looking Information is based on certain 
key expectations and assumptions made by the Corporation, including 
expectations and assumptions concerning availability of capital resources, 
absence of exercise of any termination right, economic and financial 
conditions, the success obtained in developing new facilities and the 
performance of operating facilities. Although the Corporation believes that 
the expectations and assumptions on which such Forward-Looking Information is 
based are reasonable, undue reliance should not be placed on the 
Forward-Looking Information since no assurance can be given that they will 
prove to be correct. The reader of this news release is cautioned not to rely 
unduly on this Forward-Looking Information. All 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 at 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 so required by 
legislation.







SOURCE  Innergex Renewable Energy Inc. 
Jean Trudel, MBA Chief Investment Officer and Senior Vice President - 
Communications 450 928-2550, ext. 252 jtrudel@innergex.com 
Marie-Josée Privyk, CFA, SIPC Director - Investor Relations 450 928-2550, 
ext. 222 mjprivyk@innergex.com 
www.innergex.com 
To view this news release in HTML formatting, please use the following URL: 
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CO: Innergex Renewable Energy Inc.
ST: Quebec
NI: UTI ERN DIV CONF  
-0- Nov/05/2013 20:34 GMT
 
 
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