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

Alterra Power Announces Results for the Quarter Ended September 30, 2013 
(under IFRS and all amounts in US dollars unless otherwise stated) 
VANCOUVER, Nov. 12, 2013 /CNW/ - Alterra Power Corp. (TSX: AXY) is pleased to 
report its financial and operating results for the three and nine months ended 
September 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, Dokie 1 and ABW Solar (third quarter 
solar acquisition) 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%), ABW Solar (10%) 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 include: 


    --  Increased revenue and EBITDA (net interest): Revenue (including
        business interruption proceeds) was $30.0 million and EBITDA
        was $18.3 million, up 3% from the comparative quarter,
        primarily due to increased contractual revenue at HS Orka and
        higher water flow at Toba Montrose.
    --  Reliable power generation: Alterra's fleet of power projects
        generated 360,391 MWh of clean power (net interest), achieving
        89% of budgeted generation despite the Montrose hydro facility
        being offline for most of the quarter. Generation would have
        been 103% of budget had the Montrose plant not been offline.
        Total generation from plants operated by Alterra was 669,344
        MWh.
    --  ABW Solar acquisition completed: Alterra acquired a 10%
        interest in a 50 MW solar generation project in Ontario, Canada
        (ABW Solar) for $7.1 million, and will manage the project.
    --  Montrose facility back online: Penstock repairs at the Montrose
        hydro facility were completed and the facility was brought back
        into service on September 22, 2013. Several site improvements
        including protective berms have also been completed and will
        significantly lessen the likelihood of any future damage or
        interruption.


--  Jimmie Creek project development:
  o Construction timing: Alterra now plans construction for this 62 MW 
run-of-river facility in 2014, and has executed a further limited 
notice to proceed with SNC Lavalin in support of this schedule.
  o PPA completed: The Jimmie Creek power purchase agreement ("PPA") 


    was finalized through an amendment completed subsequent to the
    quarter. Under the contract, the project will sell 100% of its


power to BC Hydro for 40 years commencing in August 2016.
  o Alterra to be 100% owner: Alterra completed an agreement to 


    purchase the 49% project stake currently owned by an affiliate of
    General Electric Energy Financial Services. The transaction is
    expected to close by December 2013.
    --  Shannon wind project: Alterra entered into an exclusivity
        agreement that provides for an option to purchase a 200 MW wind
        generation development project in Clay County, Texas, USA.
    --  Reykjanes Re-Injection Program: Alterra commenced drilling a
        new large-diameter well in support of a field maintenance
        program. The well was completed in November, with positive
        initial indications of permeability.

John Carson, Alterra's CEO, said "With our operations back to full strength 
and delivering positive results, we are now focused on making 2014 a strong 
year of growth for Alterra. Our plan is to place both Jimmie Creek and Shannon 
Wind into construction in 2014, and I'm confident that we have the resources, 
including people and access to capital, to make that a reality."

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                                                                                      
September
30, 2013                                                                                  
                            Toba                                  Exploration
                                      Dokie     Soda                              Net
                HS Orka   Montrose      1       Lake      ABW      and Head     Interest   Consolidated
                (66.6%)    (40%)      (51%)    (100%)    (10%)      Office       Total       Results

Generation      206,791    113,474    26,423    12,631   1,072              -    360,391        323,128
(MWh)                                                                                     

Total             8,821 $   12,143  $        $     817 $   434              -     24,993         14,062
Revenue       $                        2,778                    $             $          $

Business
Interruption          -      5,052         -         -       -              -      5,052              -
Insurance
Proceeds                                                                                  

Gross Profit      2,171      9,387       390   (1,035)     298              -     11,211          2,225
(Loss)                                                                                    

EBITDA ((a))      4,787     14,541     1,266     (430)     268        (2,179)     18,253         20,385
                                                                                                    
                                                                                                    

For the
three months
ending                                                                                      
September
30, 2012                                                                                  
                            Toba                                  Exploration
                                      Dokie     Soda                              Net
                HS Orka   Montrose      1       Lake      ABW      and Head     Interest   Consolidated
                (66.6%)    (40%)      (51%)    (100%)    (10%)      Office       Total       Results

Generation      198,406    154,208    34,085    12,308       -              -    399,007        310,215
(MWh)                                                                                     

Total             8,338 $   16,210  $        $     806 $     -              -     29,244         13,326
Revenue       $                        3,890                    $             $          $

Gross Profit      2,439     13,259     1,518   (1,473)       -              -     15,743          2,189
(Loss)                                                                                    

EBITDA ((a))      4,077     14,092     2,429     (998)       -        (1,836)     17,764         19,808
                                                                                            



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 nine months ended September 30, 2013.

Consolidated Results

Revenue was up 6% ($14.1 million compared to $13.3 million) due to increased 
generation and contractual sales at HS Orka. Gross profit remained consistent 
at $2.2 million as the increase in revenue was offset by increased maintenance 
drilling at HS Orka.

Net income improved $1.7 million to $16.4 million, largely as a result of high 
water flows and insurance proceeds received at Toba Montrose, which drove a 
$7.5 million increase in Alterra's share of equity investments. Non-cash items 
offsetting this increase include:
    --  A $2.3 million negative change in the fair value of bonds
        payable and derivatives, related primarily to fluctuations in
        forecasted aluminum prices.
    --  A $2.9 million negative movement related to foreign exchange.
    --  A $2.0 million negative change in write-offs of certain
        development costs related primarily to the completion of joint
        ventures in Chile and Peru.

Consolidated cash and cash equivalents at September 30 were $37.1 million 
($39.2 million at December 31, 2012).

Net Interest Results

Alterra's net interest in revenue and EBITDA increased 3% and 3% respectively 
primarily due to increased contractual revenue at HS Orka, high water flow at 
Toba Montrose resulting in increased generation, income from the Blue Lagoon 
hf due to increased visitor attendance and the addition of ABW Solar. Offsets 
to these increases include reduced generation at Dokie 1 due to low winds, and 
slight increases in general and administrative expense related to 
non-recurring transaction fees and office reductions for the Company's South 
American projects.

Iceland Operations (66.6% Interest)

The 100 MW Reykjanes plant generated 132,689 MWh of electricity (98% of 
budget), and the 72 MW Svartsengi plant generated 74,102 MWh of electricity 
(109% of budget), and continued to supply thermal energy for district heating.

Toba Montrose Operations (40% Interest)

The Toba Montrose facility generated 113,474 MWh of electricity, or 74% of 
forecasted generation. Although the Montrose facility was offline for repairs 
during the majority of the quarter, the measured water flow for purposes of 
business interruption insurance payments (attributed generation) was 57,636 
MWh, for a combined pro forma generation of 171,110, 112% of budget.

On December 13, 2012 a 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 were completed during the third quarter and the 
facility was brought back into service on September 22, 2013. Several site 
improvements including protective berms were also completed and will 
significantly lessen the likelihood of any future damage or interruption. 
Business Interruption and property damage proceeds were paid by the insurer 
during the quarter and eligible property costs and sub-limits with respect to 
future payments for property damage are being reviewed with the insurer.

New property insurance for the project was obtained in September 2013 with 
earth movement coverage capped at C$40.0 million. Toba Montrose has agreed to 
defer distributions until a higher level of earth movement coverage is 
re-established, which the Company expects to occur by the second quarter of 
2014 or earlier.

Dokie 1 Operations (51% Interest)

The 144 MW Dokie 1 wind farm generated 26,423 MWh of electricity for the 
quarter, or 72% of budget. Revenue decreased against the comparative quarter 
due to lower wind.

ABW Solar Operations (10% Interest)

On August 23 Alterra acquired a 10% interest in a 50 MW solar generation 
project in Ontario (ABW Solar), which will be held in a general partnership 
with an affiliate of GE Energy Financial Services ("GE EFS") and managed by 
Alterra. The project was built by First Solar, Inc. and achieved commercial 
operations during the second quarter of 2013. The project will sell 100% of 
its electricity to the Ontario Power Authority under 20-year PPAs. The project 
generated 1,072 MWh for the quarter (beginning August 23), representing 113% 
of budget.

Soda Lake Operations (100% Interest)

The 15 MW Soda Lake geothermal plant generated 12,631 MWh of electricity for 
the current quarter, or 98% of budget. The plant completed its annual 
maintenance outage during the quarter as planned.

Expansion and Development Projects

Jimmie Creek hydro (formerly Upper Toba)

Alterra is currently finalizing plant design for the fully permitted 62 MW 
Jimmie Creek project and in July 2013 signed a limited notice to proceed with 
SNC Lavalin who will provide further pre-construction services. Alterra is now 
targeting construction to begin in the first half of 2014.

On October 31 Alterra signed an agreement to purchase the 49% share of the 
Jimmie Creek project currently owned by GE EFS, following which Alterra will 
own 100% of the project. Alterra expects the transaction to close by year-end.

In November 2013 Alterra completed an amendment to the project's PPA to cover 
the Jimmie Creek project only, at a nameplate capacity of 62 MW with projected 
annual firm energy of 114 GWh and an August 1, 2016 completion date for 
construction. Under the contract, the project will sell 100% of its power to 
BC Hydro for 40 years. Alterrawill examine the possibility of constructing 
the Upper Toba project at a later date under a future call for power.

Dokie 2 wind farm expansion

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.

South American geothermal projects

In July 2013 Alterra completed a joint venture agreement with Energy 
Development Corporation ("EDC") for the further development of the Mariposa 
project in Chile and the Crucero, Loriscota, and Tutupaca Norte projects in 
Peru on a joint basis. Under the terms of the joint venture, EDC will be 
entitled to earn a 70% interest by funding the next $58.3 million in project 
expenditures at Mariposa and $8.0 million on the Peruvian projects. Subsequent 
project equity contributions and economic sharing would be on a pro rata basis 
between the partners. EDC is now the managing partner for the development of 
the Mariposa project and the Peruvian projects. The projects are now recorded 
as equity investments by Alterra.

Reykjanes Expansion

Alterra has commenced a reinjection program at the Reykjanes field, and will 
refine the timeline for the Reykjanes expansion pending results from the 
program. The key matters remaining prior to construction are conclusion of a 
PPA, completion of project financing and confirmation of resource field.

Other development projects

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.

 
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|    --  Alterra Power will host a conference call to discuss financial and operating results on Wednesday, November 
13, 2013 at 11:30 am ET (8:30 am   |
|        PT).                                                                                                            
                            |
|    --  North American participants dial 1-888-390-0546 and International participants dial 1-416-764-8688; the 
conference ID is 18533630.             |
|    --  The call will also be broadcast live on the Internet at                                                         
                            |
|        http://www.newswire.ca/en/webcast/detail/1246789/1373689.|
|    --  The call will be available for replay for one week after the call by dialing 1-416-764-8677 and entering 
replay PIN 533630.                    |
|_______________________________________________________________________________________________________________________
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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. 
Peter Lekich, Corporate Communications Alterra Power Corp. Phone: 604.235.6719 
Email:info@alterrapower.ca 
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CO: Alterra Power Corp.
ST: British Columbia
NI: NASDAQ UTI ERN CONF  
-0- Nov/13/2013 04:14 GMT
 
 
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