Tuesday, November 6, 2012

INE - Innergex reports third quarter 2012 results (CAD 0.3125)

Company: Innergex Renewable Energy Inc.
Stock Name: INE
Amount: CAD 0.3125
Announcement Date: 06/11/2012
Record Date: 27/12/2012

Dividend Detail:





  • Power generated reaches 102% of long-term average for the quarter and
    96% of long-term average for 9 months






  • Production for the quarter 15% below last year's record level, but 7%
    higher for 9 months






  • Operating revenues decrease 6% to $47.5M for the quarter, but increase
    15% to $132.4M for 9 months






  • Adjusted EBITDA decreases 8% to $37.0M for the quarter, but increases
    14% to $102.1M for 9 months







LONGUEUIL, QC, Nov. 6, 2012 /CNW Telbec/ - Innergex Renewable Energy
Inc. (TSX:��INE) ("Innergex" or the "Corporation") today released its
operating and financial results for the third quarter ended
September��30, 2012.



"While hydrology and wind conditions were good, production levels could
not match the record levels achieved during the third quarter last
year" stated Michel Letellier, President and Chief Executive Officer of
the Corporation. "Hydrology, wind, and solar radiation conditions are
among the few variables the Corporation cannot control. However, the
diversification of our assets across geographic markets and sources of
energy should enable our operating performance year after year to
continue to track our expected long-term average production level"
added Mr. Letellier.



OPERATING RESULTS

Amounts shown are in thousands of Canadian dollars except as noted
otherwise.




































































































��

��

��

��

��

��

��

��

��

Three months

��

Nine months

For the periods ended September��30

2012

��

2011

��

2012

��

2011

��

��

��

��

��

��

��

��

Power generated (MWh)

564,617

��

666,009

��

1,606,825

��

1,501,506

Long-term average (MWh)

552,852

��

508,301

��

1,667,619

��

1,419,399

Operating revenues

47,549

��

50,465

��

132,353

��

115,126

Adjusted EBITDA1

37,006

��

40,098

��

102,084

��

89,440

Net loss

(728)

��

(21,598)

��

(4,788)

��

(22,702)

Net loss, $ per share

(0.01)

��

(0.34)

��

(0.04)

��

(0.41)







1

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





Third Quarter Results



Electricity production of 564.6��GWh was just slightly greater than the
long-term average, due mainly to favourable wind conditions in Quebec
and to better than average hydrologic conditions in British Columbia
and the United States, which were offset by lower than anticipated
hydrologic conditions in Quebec and Ontario. The Stardale solar farm
performed above its expected long-term average.



Operating revenues and Adjusted EBITDA decreased by 6% and�� 8%,
respectively for the quarter, due mainly to lower production at the
hydroelectric facilities compared to last year's record level; this was
partly offset by higher production at all wind farms, and by additional
revenues from the addition of the Stardale solar farm, the Montagne
S��che wind farm, and Phase I of the Gros-Morne wind farm.



The favourable variation in net loss for the quarter is attributable
mainly to an unrealized net gain on derivative financial instruments of
$9.6 million, compared to an unrealized net loss of $40.5 million in
2011. The net loss for the quarter also reflects a realized loss on
derivative financial instruments of $14.1 million related to the
settlement of the Kwoiek Creek bond forwards. This loss is the result
of a decrease in benchmark interest rates between the date the bond
forwards were entered into and the settlement date, and is compensated
by a lower fixed rate on the 39-year term loan for the Kwoiek Creek
project. Bond forwards served to protect the economic value of the
project until financing was put in place. Excluding these items and the
related deferred income tax recoveries, earnings�� for the quarter would
have been $2.7��million�� (compared to earnings of $8.0 million in 2011).



Nine-Month Results



For the nine-month period ended September��30, 2012, electricity
production reached 1,607��GWh, or 96% of the long-term average of
1,668��GWh, due mainly to low water flows at all Ontario facilities and
at most of the Quebec and British Columbia facilities. While wind
conditions were better than anticipated at most wind farms, electricity
produced from wind was affected by lower-than-expected wind conditions
at Carleton, as well as required repairs at Gros-Morne during the first
quarter. The United States facility and the Stardale solar farm
performed above their long-term average.



For the nine-month period ended September��30, 2012, operating revenues
and Adjusted EBITDA increased 15% and 14%, respectively, due mainly to
the additional revenues from the Stardale solar farm, the Montagne
S��che wind farm, and Phase��I of the Gros-Morne wind farm. The addition
of six operating facilities as part of the acquisition of Cloudworks
Energy Inc. in April 2011 also explains these increases.



The favourable variation in net loss for the nine-month period is
attributable mainly to an unrealized net gain on derivative financial
instruments of�� $2.6 million, compared to an unrealized net loss of
$41.9 million in 2011. The net loss for the period also reflects a
realized loss on derivative financial instruments of $14.1 million
related to the settlement of the Kwoiek Creek bond forwards, as
explained above. Excluding these items and the related deferred income
tax recoveries, earnings�� for the nine-month period would have been
$3.8��million�� (compared to earnings of $7.9 million�� in 2011).



Cash Flows from Operating Activities



For the nine-month period ended September 30, 2012, cash flows generated
by operating activities totalled $49.4 million ($33.6��million in 2011).
This increase is due primarily to a $26.8 million increase in changes
in non-cash operating working capital items and a $12.6 million
increase in Adjusted EBITDA, partly offset by a $12.0 million increase
in interest paid and a $14.1��million realized loss on derivative
financial instruments.



DEVELOPMENT PROJECTS



Kwoiek Creek Hydroelectric Facility

The construction of this hydroelectric facility began in the last
quarter of 2011.�� Construction is progressing as scheduled and
budgeted. By the end of the third quarter of 2012, the intake diversion
channel was completed; the intake construction and the erection of the
powerhouse steel superstructure were under way; and the transmission
line construction and penstock installation were ongoing. Current
activities also include construction of the fish habitat compensation
channel. Construction of this facility is expected to be completed in
the last quarter of 2013.



Last July, the Corporation also secured non-recourse construction and
term project financing of $168.5��million for the Kwoiek Creek project.
The financing was arranged with a group of life insurance companies.



Northwest Stave River Hydroelectric Facility

The construction of this hydroelectric facility began in the last
quarter of 2011. Construction is progressing as scheduled and budgeted.
By the end of the third quarter of 2012, concrete work at the
powerhouse was nearly completed and the fish habitat compensation
construction was completed. The fish habitat compensation was being
tested and revegetated and the penstock installation, intake,
cofferdam, and diversion work were all ongoing and progressing as
planned. Construction of this facility is expected to be completed in
the last quarter of 2013.



Viger-Denonville Wind Farm

In the third quarter of 2012, the Minist��re du D��veloppement durable, de
l'Environnement et des Parcs ("MDDEP") confirmed that public hearing
would not be required for the project. As such, Viger-Denonville
expects to receive the government decree in the first quarter of 2013.
The notice to proceed was issued and a purchase order for the
procurement of the main power transformer was also executed during the
period. Current activities include selecting the engineering,
procurement and construction contractor. The Corporation expects to
start construction of the Viger-Denonville project in early��2013.



Boulder Creek, North Creek, and Upper Lillooet Hydroelectric Facilities

In the third quarter of 2012, RFPs to select the turbines supplier and
civil works contractor were issued. Current activities include review
of the Environmental Assessment Application by federal and provincial
governments, ongoing consultation with stakeholders and applications
for obtaining the relevant permits. The Corporation expects to start
construction on the Boulder Creek and Upper Lillooet projects in 2013
and on the North Creek project in 2014.



Tretheway Creek and Big Silver-Shovel Creek Hydroelectric Facilities

Current activities include hydrometric monitoring, environmental
studies, consultation with the various stakeholders, applications for
obtaining the relevant permits and preliminary engineering. An
important milestone was reached when the projects received
Environmental Assessment Certificates from the British Columbia
Ministry of Environment and Ministry of Energy, Mines and Natural Gas
on August 20, 2012. The Corporation expects to start construction on
these projects in 2013.



ACQUISITIONS IN PROGRESS



Magpie hydroelectric facility in Quebec

On July 26, 2012, the Corporation announced that it had signed a
purchase and sale agreement to acquire from Hydromega Group of
Companies its 70% interest in the 40.6��MW Magpie facility located in
the Minganie RCM, in Northeastern Quebec. Closing procedures are
progressing well, albeit slowly, and no specific closing date can be
given at this time. The Corporation is also working with Hydromega
towards completing the other acquisitions pursuant to the letter of
intent that was signed at the same time.



SUBSEQUENT EVENTS



Termination of an Agreement to Acquire a Wind Energy Project in British
Columbia


On October 1, 2012, the Corporation announced that it had terminated its
agreement to acquire the 77��MW Wildmare wind energy�� project located in
British Columbia, Canada. Despite the efforts of both parties, several
conditions of closing were not met by the prescribed closing date of
September 30, 2012. The Corporation considered each of these conditions
to be essential to the successful completion of the project. After
careful consideration, the Corporation decided not to extend the
closing date because it strongly believed that doing so would not
change the outcome within an acceptable period of time.



Official inauguration of the Stardale Solar Farm

On October 4, 2012, Innergex celebrated the inauguration of its Stardale
solar farm during an official ceremony with the Honourable Chris
Bentley
, Minister of Energy for the Government of Ontario, Grant Crack,
MPP for Glengarry-Prescott-Russell, and Robert Kirby, Mayor of East
Hawkesbury Township.



Closing of the Acquisition of Two Operating Hydroelectric Facilities in
British Columbia


On October 12, 2012, the Corporation announced that it had completed the
previously announced acquisition of the Brown Lake and Miller Creek
run-of-river hydroelectric facilities located in British Columbia,
Canada, for a�� final purchase price of $68.6��million. Brown Lake is a
7.2 MW facility with an average annual production of 51,800 MWh. The
electricity it produces is sold to BC Hydro under a power purchase
agreement which expires in 2016. The Corporation expects to double the
plant's installed capacity to 14.4 MW and increase its expected average
annual production by 27,000 MWh for an additional investment of
approximately $20.0 million. Miller Creek is a 33 MW facility with an
average annual production of 97,900 MWh. The electricity it produces is
sold to BC Hydro under a power purchase agreement which expires in
2023. The Corporation expects to upgrade the penstock and water intake
which should increase the plant's expected average annual production by
4,895 MWh and reduce operating costs, for an additional investment of
approximately $8.5 million. However, this capital expenditure program,
which was initially expected to occur in the fall of 2012, has been
postponed to the fall of 2013, given the longer-than-expected closing
process and seasonal constraints.



DIVIDEND DECLARATION



Dividends to Preferred Shareholders

On November 6, 2012, the Corporation declared a dividend of $0.3125 per
Series A Preferred Share payable on January��15,��2013, to Series A
preferred shareholders of record at the close of business on December
31, 2012
.



Dividends to Common Shareholders

On November 6, 2012, the Corporation declared a dividend of $0.1450 per
common share payable on January��15,��2013, to common shareholders of
record at the close of business on December 31, 2012.



CONFERENCE CALL REMINDER



The Corporation will hold a conference call tomorrow, Wednesday November
7, 2012
at 10:00 a.m. ET. The third quarter results will be presented
by Mr. Michel Letellier, President and Chief Executive Officer of
Innergex and by Mr.��Jean��Trudel, Chief Investment Officer and Senior
Vice President - Communications. Investors and financial analysts are
invited to access the conference call by dialing 647��427-7450 or 1��888��231-8191. 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 577��MW (gross 1,031��MW), including 22
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
188��MW (gross 263��MW), for which power purchase agreements have been
secured; and (iii) prospective projects with an aggregate net capacity
totaling 2,904 MW (gross 3,127��MW). Innergex Renewable Energy Inc. is
rated BBB- by S&P and BBB (low) by DBRS.



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-month and nine-month
periods ended September��30, 2012 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 income 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.



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: (i) execution of strategy; (ii) capital resources; (iii)
derivative financial instruments; (iv) availability of water flows,
wind and sun light; (v) failure to close the recently announced
transactions; (vi) construction and design; (vii) development of new
facilities; (viii) project performance; (ix) permits; * equipment
failure; (xi) health, safety and environmental risks; (xii) interest
rate and refinancing risk; (xiii) financial leverage and restrictive
covenants; and (xiv) relationship with public utilities. 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
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.



SOURCE: INNERGEX RENEWABLE ENERGY INC.







For further information:

Jean Trudel, MBA
Chief Investment Officer and
Senior Vice President - Communications
450 928-2550, ext. 252
jtrudel@innergex.com

Marie-Jos��e Privyk, CFA
Director - Investor Relations
450 928-2550, ext. 222
mjprivyk@innergex.com��

www.innergex.com









No comments:

Post a Comment