Alterra Power Announces Audited Results for the Year Ended December 31, 2013 and Project Updates

 Alterra Power Announces Audited Results for the Year Ended December 31, 2013  and Project Updates  (under IFRS and all amounts in US dollars unless otherwise stated)  TSX : AXY  VANCOUVER, March 27, 2014 /CNW/ - Alterra Power Corp. (TSX: AXY) ("Alterra" or  the "Company") is pleased to report its financial and operating results for  the year ended December 31, 2013. For further information on these results  please see Alterra's Consolidated Financial Statements and Management's  Discussion and Analysis.  Alterra consolidates 100% of the results of operations at HS Orka and Soda  Lake, while Alterra's interests in the Toba Montrose run of river hydro  facility and the Dokie 1 wind facility are accounted for as equity  investments. In certain statements in this news release, Alterra's results are  disclosed as Alterra's "net interest", which means the effective portion of  results that Alterra would have reported if each of HS Orka (66.6%), Toba  Montrose (40%), Dokie 1 (51% from January to December 19, 2013 and 25.5% for  the remainder of 2013), ABW Solar (10% from August 23, 2013 to November 29,  2013) and Soda Lake (100%) had been reported in accordance with Alterra's  actual share of ownership at December 31, 2013 and for the twelve months then  ended.  Management believes that net interest reporting provides the clearest  view of Alterra's performance.  Highlights for the year include:            --  Increased revenue and recurring net interest EBITDA: Revenue             was up 5% to $63.9 million due to a higher level of contracted             power sales at HS Orka. Net interest revenue (including             business interruption proceeds) was $88.9 million, up 2% from             the comparative year, primarily due to the increase in revenue             at HS Orka.  Net interest EBITDA was 8% lower at $32.8 million,             but would have been 4% higher ($37.2 million) if the             non-recurring costs related to the Montrose rockslide that were             expensed were excluded.         --  Reliable power generation: Alterra's fleet of power projects             generated 1,268,294 MWh of clean power (net interest),             achieving 94% of budgeted generation despite the Montrose hydro             facility being offline for nearly nine months. Generation would             have been 101% of budget had the Montrose plant had been             operating for the whole period. Total generation from plants             operated by Alterra was 2,156,803 MWh.         --  Positive cash flow: The Company generated cash flow from             operations of $16.6 million versus $12.1 million in the             comparative period.         --  Strategic asset sales:       o Dokie 1 partial sale: Alterra sold half of its 51% interest in         Dokie 1 to Fiera Axium for $26.8 million plus up to C$2.3 million         over the next three years dependent on asset performance. The         Company retains a 25.5% ownership of Dokie 1 and continues to         operate and manage the project. The Company recognized a pre-tax         gain on the sale of $17.5 million in the year.       o ABW Solar: Alterra sold its 10% interest in the ABW Solar project         to Fiera Axium, for proceeds of $9.8 million. The Company         recognized a pre-tax gain on the sale of $2.8 million in the year.         --  Montrose facility back in service:Penstock replacement at the             Montrose hydro facility was 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.         --  Reykjanes field maintenance program:  The Company commenced a             fluid reinjection program at the Reykjanes field to enhance             future field stability.  In support of the fluid reinjection             program, the Company completed drilling of a new large-diameter             well (RN-33) with positive initial indications of permeability.             Two new production wells were drilled at the Reykjanes             reservoir early in 2013. The first of these wells has been tied             in to the power plant and is supplying an additional 6 MW of             capacity. Testing of the second well is underway.         --  Distributions received:The Company recognized equity             distributions declared during the year from TMGP, DGP, and the             Blue Lagoon in the amounts of $0.8 million, $2.0 million, and             $1.8 million respectively. In 2013, HS Orka declared a dividend             of $1.2 million of which the Company's share was $0.8 million.         --  Jimmie Creek hydro project highlights:       o Pre-construction activities: Alterra executed a further limited         notice to proceed with SNC Lavalin to provide pre-construction         design work and other services in preparation to commence         construction on the 62 MW Jimmie Creek hydro project in British         Columbia in 2014.       o Power purchase agreement amended: The Company completed an         amendment to the power purchase agreement ("PPA") for Jimmie Creek.         Under the contract, the project will sell 100% of its power to BC         Hydro for 40 years commencing in August 2016.       o Purchase agreement executed: Alterra completed an agreement in         November to purchase the 49% stake of the Jimmie Creek project then         held by an affiliate of GE Energy Financial Services ("GE EFS").          On March 6, 2014 the transaction was completed, following which the         Company owned 100% of the project.         --  Shannon wind project highlights:       o Completed acquisition:  Alterra acquired a 10% interest in the         Shannon wind project (a 202 MW development-stage wind project in         Clay County, Texas, USA), and subsequent to year end acquired the         remaining 90% for a small up-front payment and a developer's fee to         be paid at financial close.       o Commencement of construction:In December Alterra completed the         construction of the initial phase of turbine foundations and         project roads and began construction of the project's main power         transformer. These activities are expected to qualify the project         for the US Production Tax Credit.       o Interconnection Security: Subsequent to year end, Alterra placed a         $4.5 million cash deposit with the project's transmission provider         to begin the design and equipment procurement for the project's         interconnection substation.       o Current activities: The Company is in the process of finalizing         project contracts (turbine supply, O&M, etc.), documenting a power         hedge for project output, and finalizing terms with tax equity         investors. The Company has also entered into an exclusivity         agreement with a large energy infrastructure fund as a potential         equity partner for the project.         --  South American joint ventures:Alterra finalized its joint             venture with Energy Development Corporation ("EDC") for the             development of the Mariposa project in Chile and certain             geothermal concessions in Peru (the last of which were agreed             subsequent to year end). EDC will hold a 70% interest in the             projects and fund 100% of the next $58.3 million of project             expenditures at Mariposa and the next $14.0 million of project             expenditures across the two Peruvian concession groups.         --  Italy joint venture:The Company finalized a joint venture with             an affiliate of Graziella Green Power ("Graziella"), an Italian             developer of solar and geothermal assets to further advance             Alterra's geothermal concessions in Italy.  John Carson, Alterra's CEO, said, "2013 was a year of meeting challenges for  Alterra. While we were busy for most of the year completing repairs at our  Montrose facility, our team was still able to deliver another solid year of  revenue, cash flow, generation and team safety. In 2014, we are already at  full speed pursuing our goals of adding new projects and maintaining our track  record as a premier renewable energy operator."  Financial Results  The following table shows Alterra's net interest in selected operating and  financial results for the year, in addition to key financial information  extracted from the consolidated results.  (expressed in thousands of US dollars, except for production)     ($000 except where                                                                                       specified)                                                                                                              For the 12                                                  ABW                             months ended               Toba   Dokie 1      Soda       Solar Exploration     December 31, HS Orka   Montrose   (25.5%)      Lake   (10%) (b)      Netead             Consolidated     2013         (66.6%)      (40%)       (a)    (100%)             Interestice                  Results     Generation   852,528    194,927   151,268    67,512     2,059     —   1,268,294    1,347,584       (MWh)     Total         39,512     20,153    16,658     4,545       832     —      81,700       63,872       Revenue     Business     —      7,166   —   —   —     —       7,166      —       Interruption     Proceeds     Gross Profit  10,156     10,028     7,602   (2,228)       555     —      26,113       13,021       (Loss)     EBITDA (d)    16,388     15,363    11,371       266       276      (10,885)    32,779       41,044                                                                                                     ($000 except where                                                                                       specified)                                                                                                              For the 12                 Toba                Soda       ABW                     Net       months ended HS Orka   Montrose                Lake     Solar   Exploration  Interest     December 31, (66.6%)      (40%)   Dokie 1    (100%)     (10%)      and Head     Total   Consolidated     2012             (c)                (51%)                            Office                  Results     Generation   817,549    264,564   151,667    64,421   —     —   1,298,201    1,292,008       (MWh)     Total         38,367     27,238    17,034     4,406   —     —      87,045        61,112       Revenue     Gross Profit  11,904     15,248     6,480   (2,982)   —     —      30,650       14,524       (Loss)     EBITDA        15,214     20,463    10,550     (614)   —       (9,884)    35,729       44,692       (a)  Reflect 51% interest from January 1, 2013 to December 19, 2013 and          25.5% interest for the remainder of 2013.     (b)  Represent the Company's 10% interest from August 23, 2013 to          November 29, 2013.     (c)  Pro forma information which reflects what the results would have          been had the Company consolidated 66.6% of HS Orka for the full          twelve month period ended December 31, 2012 (versus the actual 75%          held through February 29, 2012).     (d)  Here and elsewhere, Adjusted EBITDA ("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 goodwill          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 year ended December 31, 2013.  Consolidated Results  Revenue was up 5% at $63.9 million due to increased generation and contractual  sales at HS Orka. Gross profit decreased to $13.0 million ($14.5 million at  December 31, 2012) as the increase in revenue was offset primarily by  increased power plant maintenance costs due to the planned cleaning and repair  of two geothermal wells at HS Orka.  Net loss increased to $116.3 million, largely as a result of one-time  write-offs of development projects as well as other non-cash items, offset in  part by gains from the sale of investments and interest from equity accounted  joint ventures.  Non-cash items contributing to the loss include:         --  A $21.7 million non-cash loss resulting primarily from the             change in the fair value of embedded derivatives related to             aluminum-linked PPAs offset in part by a $2.7 million non-cash             gain in the fair value of bonds payable.  Both of these             movements relate primarily to fluctuations in forecasted             aluminum prices which fell in the year by 8%.         --  A $120.5 million write-off of development projects ($1.6             million at December 31, 2012), which included $50.5 million for             the Bute Inlet project, $10.6 million for the Upper Toba River             project, $2.4 million for other hydro projects and $32.7             million for certain geothermal development properties. There             was also a write-off of $24.3 million for select plant and             equipment.  The hydro write-offs were related to a decline in             the market outlook for renewable energy projects as a result of             the new Integrated Resource Plan ("IRP") from the BC             Government. An additional write down was recorded for certain             HS Orka development projects as a result of a lowered outlook             on available power contract pricing.  The Company remains             active with these projects and will look to develop them in the             future when market outlook improves.  Consolidated cash and cash equivalents at December 31, 2013 were $41.7 million  ($39.2 million at December 31, 2012) of which $33.9 million is held by HS Orka.  Net Interest Results  Alterra's net interest in revenue remained stable in 2013, with a  2%   increase primarily due to new contractual revenues at HS Orka and the addition  of ABW Solar. 2013 EBITDA was consistent with 2012 with the exception of Toba  Montrose, where the EBITDA declined by $5.1 million due to non-recurring costs  related to the removal of the damaged portion of the penstock plus higher  insurance premiums in the period. These rockslide-related events caused net  interest in EBITDA to decrease by 8% (down $3.0 million).  The net interest cash position at December 31, 2013 was $38.1 million.  Iceland Operations (66.6% Interest)  The 100 MW Reykjanes plant generated 526,502 MWh of electricity (99% of  budget), and the 72 MW Svartsengi plant generated 326,026 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 194,927 MWh of electricity, or 69% of the  generation projected for both units running at full service.  Although the  Montrose facility was offline for repairs during the majority of the year, the  measured water flow for purposes of business interruption insurance payments  (attributed generation) was 94,290 MWh, for a combined pro forma generation of  289,217, or 102% 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 hydro facility.  The penstock repairs were  completed and the plant resumed operation on September 22, 2013. Several site  improvements including protective berms were completed that will significantly  lessen the likelihood of any future damage or interruption.  The Company's proportionate share of the insurance proceeds received to date  is $15.2 million  ($8.0 million for property damage and $7.2 million for  business interruption).  At December 31, 2013 an insurance receivable of $3.4  million was recognized by Toba Montrose, of which $2.9 million currently  remains outstanding.   The final $2.5 million property claim is being reviewed  with respect to eligible property costs and sub-limits and has not been  accrued for at December 31, 2013.  The project renewed its insurance package in September 2013 with earth  movement coverage capped at C$50.0 million. As a result, Toba Montrose agreed  with its lenders to temporarily defer distributions until a higher level of  earth movement coverage is re-established. Toba Montrose expects to obtain a  significantly higher level of coverage and is in discussion with the lenders  to extinguish the waiver and resume distributions once this coverage is in  place.  Dokie 1 Operations (25.5% Interest)  The 144 MW Dokie 1 wind farm generated 151,268 MWh of electricity for the year  (reflecting 51% interest from January 1 to December 19, 2013 and 25.5%  interest for the remainder of the year), or 91% of budget. Generation is lower  than budget due to lower winds in the third quarter.  On December 20, 2013 the Company sold half of its 51% interest in the Dokie 1  wind farm to an affiliate of Fiera Axium Infrastructure, Inc. ("Fiera Axium"),  the Company's partner at Dokie 1 and Toba Montrose. The Company received  initial sales proceeds of $26.8 million, and may receive further earn-out  payments of up to C$2.3 million over the next three years depending on asset  performance. The Company retains a 25.5% ownership of Dokie 1 and continues to  operate and manage the project. The Company recognized a pre-tax gain on the  sale of $17.5 million in the year.  ABW Solar Operations (Sold)  On November 29, 2013 the Company sold its 10% interest in ABW to an affiliate  of Fiera Axium for proceeds of $9.8 million, recognizing a pre-tax gain of  $2.8 million. The Company had acquired the 10% interest in the ABW Solar  project, a 50 MW solar project in Ontario, Canada for $7.1 million in August  2013. The Company was the managing partner for the project, and held the ABW  Solar interest together with its partner, GE EFS.  Soda Lake Operations (100% Interest)  The 15 MW Soda Lake geothermal plant generated 67,512 MWh of electricity for  the year, or 99% of budget.  Expansion and Development Projects  Jimmie Creek hydro (formerly Upper Toba)  The Company holds 100% interest in the fully permitted 62 MW Jimmie Creek  project, and commenced construction activities in March 2014. The Jimmie Creek  Project is being delivered under an Engineering, Procurement, Construction  Management (EPCM) contract with SNC Lavalin. Project advancements during the  year included completion of drilling and seismic testing for the powerhouse  and intake locations, further hydrology work and continued construction  preparation with project contractors and consultants.  The Jimmie Creek project has a 40 year PPA with BC Hydro, has at a nameplate  capacity of 62 MW and projected annual firm energy of 114 GWh.  Shannon wind project  The Company holds a 100% interest in Shannon Wind Holdings LLC, a 202 MW wind  project located in Clay County, Texas, USA.  In December 2013, the Company completed certain construction activities to  ensure the Shannon wind project will qualify for the U.S. Production Tax  Credit, which included contracting with Mortenson to complete the initial  phase of on-site construction and contracting with Siemens Energy to begin  manufacturing the project's main power transformer.  In February 2014, $4.5 million of cash was deposited with Oncor Electric  Delivery Company LLC, the project's transmission service provider, which has  commenced the design and equipment procurement for the project's  interconnection substation.  Contract negotiations for construction, turbine supply, operations and  maintenance and other contracts are underway and the Company is working with  several financing parties in preparation for closing project financing, which  is projected for the second quarter of 2014.  The Company expects to sell electricity generated from the Shannon wind  project under a long term power hedging agreement which it is currently in  documentation. Subsequent to year end, Alterra entered into an exclusivity  agreement with a large energy infrastructure fund as a potential equity  partner for the project.  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  year Alterra continued to collect data, conduct engineering work and perform  other studies to complete the assessment of the project.  South American geothermal projects  The Company holds a 30% interest in the Mariposa project in Chile and a 30%  interest in a number of early stage development projects in Peru. The  remaining 70% interest is held by EDC, who will fund the next $58.3 million in  projected expenditures at Mariposa, and $8.0 million and $6.0 million spend  respectively under the two Peruvian joint venture agreements. The next major  phase of activity at Mariposa is expected to include drilling large-diameter  rotary holes to confirm rock permeability, reservoir chemistry, fluid  chemistry and other resource parameters in order to finalize plant design. The  next steps of development for the Peruvian concessions include advanced  exploration activities designed to identify the best locations for power plant  development and construction.  Italian geothermal projects  The Company holds a 45% interest in the Mensano and Roccastrada geothermal  concessions, the 55% interest is held by Graziella who will fund approximately  $4.0 million for the joint venture's next development activities.  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 the resource field.  Other development projects  During 2013 the Company has continued to perform hydrology studies on the Bute  Inlet and other hydro projects and has maintained all existing permits and  licenses in good standing.  The Company will continue to collect hydrology  data and maintain all projects in good standing despite writing down these  projects to nil for accounting purposes in the year, and will look to develop  these projects in the future when market outlook improves.  In Iceland, Alterra began an environmental assessment on the Bulandsvirkjun  hydroelectric project, which is owned 50% by HS Orka.  Outlook  Ross Beaty, Alterra's Chairman, said, "2013 was a challenging year for us due  to a weaker power outlook in BC where so many of our development projects are  located, and the knock-on effects from the rockslide at Montrose in late 2012.  At year-end we decided to write off most of the historic costs carried on our  books for most of our development projects while retaining our interest in  these projects for when conditions recover in the future allowing their  development. Today, Montrose is back in operation and we have shifted our  development efforts to Texas where things look very promising at our 200 MW  Shannon wind project and where power markets remain strong. We have an  exceptional team and adequate financial capacity to manage our growth, and I  look forward to excellent results as 2014 progresses."     ________________________________________________________________________________________________________________________ ________  |Alterra Power will host a conference call to discuss financial and operating results on Friday, March 28, 2014 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        |        |73147598.                                                                                                                        |     |                                                                                                                                 |     |The call will also be broadcast live on the Internet at                                                                          |     | |     |                                                                                                                                 |   |The call will be available for replay for one week after the call by dialing 1-416-764-8677 and entering replay  PIN 147598.     |   |_______________________________________________________________________________________________________________________ _________|  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  To view this news release in HTML formatting, please use the following URL:  CO: Alterra Power Corp. ST: British Columbia NI: NASDAQ UTI ERN CONF  
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