Stock Name: INE
Amount: CAD 0.3125
Announcement Date: 14/05/2012
Record Date: 27/06/2012
Dividend Detail:
PRODUCTION CAPACITY ADDITIONS INCREASE REVENUES 38%
Power generated increases 36% to 327,508��MWh, or 81% of long-term
average;
Operating revenues increase to $28.8 million;
EBITDA increases 28% to $18.9 million.
LONGUEUIL, QC, May 14, 2012 /CNW Telbec/ - Innergex Renewable Energy
Inc. (TSX:��INE) ("Innergex" or the "Corporation") today released its
operating and financial results for the first quarter ended March
31,��2012.
"Production conditions tied to water flows and wind regimes are among
the few parameters we cannot control. However, we remain confident that
production levels will revert to the long-term average over time. We
continue to focus our efforts on optimizing our operating facilities
and on moving forward with our many projects under construction and
under development," stated Michel Letellier, President and Chief
Executive Officer of the Corporation.
OPERATING RESULTS
Amounts shown are in thousands of Canadian dollars except as noted
otherwise.
�� | �� | |
Highlights | Three-month period | |
For the period ended March 31 | 2012 | 2011 |
�� | �� | �� |
Power generated (MWh) | 327,508 | 240,180 |
Long-term average (MWh) | 403,446 | 257,656 |
Operating revenues | 28,757 | 20,816 |
EBITDA | 18,883 | 14,724 |
Net earnings | 7,805 | 5,730 |
Net earnings, $ per share | 0.10 | 0.08 |
�� | �� | �� |
The increases in power generated, operating revenues, and EBITDA
recorded for the first quarter ended March��31,��2012 result mainly from
the addition of the Harrison operating facilities acquired in April
2011 and of the Montagne S��che and Gros-Morne I wind farms commissioned
last November. Power generated increased 36% in the first quarter
compared to the same period last year. However, it reached 81% of
long-term average, mainly due to low water flows at all BC facilities
resulting from a cold and long winter. As the snow pack begins to melt,
Innergex expects higher power generation to occur in subsequent
quarters.
Power generation of the Corporation's wind farms was slightly below
long-term average as a result of lower wind conditions; in addition,
production of the Gros-Morne I wind farm was interrupted by damage
following a load rejection event that occurred last December.
Replacement of the damaged components was completed in January and the
wind farm was back in service in February. Innergex intends to mitigate
the loss of revenue partly through its business interruption insurance
coverage, and it continues to work with the turbine manufacturer to
ensure the implementation of a permanent solution to meet all the
requirements of the turbine supply agreement.
The net earnings of $7.8��million reported for the quarter reflect
significant unrealized net gains on derivative financial instruments of
$21��million, as well as an associated deferred income tax expense of
$5.5��million. These unrealized net gains on derivative financial
instruments are due mainly to the increase in benchmark interest rates
since the end of 2011. The Corporation uses derivative instruments to
hedge its debt against interest rate fluctuations; since it does not
use hedge accounting, changes in the fair market value of derivative
financial instruments have a direct effect on net earnings. When
excluding these unrealized net gains on derivative financial
instruments, the Corporation would have recorded a net loss for the
quarter of $7.7��million (compared to a net loss of $1.3��million for the
same period last year). This net loss is due partly to the shortfall
caused by weak hydrology and wind conditions during the quarter, and
partly to higher finance costs and depreciation and amortization
expenses resulting from the greater number of operating facilities.
Cash flows from operating activities for the quarter reached $9.6
million (compared to $12.6 million for the same period last year). The
decline results mainly from an increase in interest paid of
$8.3��million, which was partly offset by the higher EBITDA and the
absence of transaction costs.
DEVELOPMENT PROJECTS
Stardale solar farm
The construction of this solar farm began in November 2010. As at the
date of this press release, the photovoltaic modules had all been
installed and preparation for commissioning activities was under way.
The Corporation expects this site to be in operation by the end of May
2012.
Gros-Morne II wind farm
The construction of this wind farm began in the second quarter of 2010.
At the end of 2011, all the foundations had been completed, all the
roads had been built, and the substation had been energized. As
planned, construction activities were halted for the winter period and
resumed during the first week of May 2012. Innergex expects Gros-Morne
II to be completed by December 1, 2012.
Kwoiek Creek hydroelectric facility
The construction of this hydroelectric facility began in the last
quarter of 2011. During the first quarter of 2012, powerhouse bulk
excavation was completed and transmission line construction and
penstock bulk excavation were ongoing. Current activities also include
designing the intake and building the powerhouse foundation.
Construction of this facility is expected to be completed in the last
quarter of 2013.
Northwest Stave River hydroelectric facility
The construction of this hydroelectric facility began in the last
quarter of 2011. As planned, construction activities were halted for
the winter period and resumed in mid-April 2012. Current activities
include powerhouse and penstock excavation. Construction of this
facility is expected to be completed in the last quarter of 2013.
Viger-Denonville wind farm
Current activities include environmental studies, consultation with the
various stakeholders, and applications for obtaining the relevant
permits. As at the date of this press release, the project had received
a favourable final decision from the Commission de protection du territoire agricole. Construction of this project is expected to start in the spring of
2013.
Boulder Creek, North Creek, and Upper Lillooet
Current activities include hydrometric monitoring, environmental
studies, consultation with the various stakeholders, applications for
obtaining the relevant permits and preliminary engineering. The
Corporation expects to start construction of the Boulder Creek and
Upper Lillooet projects in 2013 and construction of the North Creek
project in 2014.
Tretheway Creek and Big Silver-Shovel Creek
Current activities include hydrometric monitoring, environmental
studies, consultation with the various stakeholders, applications for
obtaining the relevant permits and preliminary engineering. The
Corporation expects to start construction of these two projects in
2013.
PROSPECTIVE PROJECTS
All the prospective projects, with a combined potential net installed
capacity of 2,844 MW (gross 2,977 MW), are in the preliminary
development stage. Some prospective projects are targeted towards
specific future requests for proposals, standard offer programs, or
feed-in tariff programs, while others will be available for future
requests for proposals yet to be announced. There is no certainty that
any prospective project will be realized.
DIVIDEND DECLARATION
Dividends to Preferred Shareholders
On May 14, 2012, the Corporation declared a dividend of $0.3125 per
Series A Preferred Share payable on July��16, 2012, to Series A
preferred shareholders of record at the close of business on June 29,
2012.
Dividends to Common Shareholders
On May 14, 2012, the Corporation declared a dividend of $0.1450 per
common share payable on July��16,��2012, to common shareholders of record
at the close of business on June��29, 2012.
CONFERENCE CALL REMINDER
The Corporation will hold a conference call tomorrow, Tuesday, May 15,
2012 at 10:00 a.m. EDT. The first 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 at
1��855��859-2056 (access code: 70015572#) until May 22, 2012, at
11:59��p.m.��EDT.
NON-IFRS MEASURES
The consolidated financial statements for the three-month period ended
March 31, 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. EBITDA is not a measure recognized by IFRS and has no
standardized meaning prescribed by IFRS. References in this news
release to "EBITDA" are to earnings before interest, provision for
income taxes, depreciation and amortization, and other items. 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
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 "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. 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) construction and design; (vi)��development of new facilities;
(vii)��project performance; (viii) permits; (ix)��equipment failure;
*��health, safety and environmental risks; (xi)��interest rate and
refinancing risk; (xii)��financial leverage and restrictive covenants;
and (xiii)��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, are 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.
Innergex Renewable Energy Inc. (TSX: INE) is a leading Canadian independent renewable power producer.
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 consists of: (i) interests in 25 operating
facilities with an aggregate net installed capacity of 461��MW (gross
847��MW), including 20 hydroelectric operating facilities and five wind
farms; (ii) interests in 10��projects under development or under
construction with an aggregate net installed capacity of 264��MW
(gross��407��MW), for which power purchase agreements have been secured;
and (iii) prospective projects with an aggregate net capacity totaling
more than 2,844 MW (gross 2,977��MW).
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.
Innergex Renewable Energy Inc. is rated BBB- by S&P and BBB (low) by
DBRS.
The Corporation's Series A preferred shares (TSX: INE.PR.A) are rated
P-3 by S&P and Pfd-3 (low) by DBRS.
��
��
For further information:
Marie-Jos��e Privyk, CFA
Director - Investor Relations
Tel.: 450 928-2550, ext. 222
mjprivyk@innergex.com
Jean Trudel, MBA
Chief Investment Officer and
Senior Vice President - Communications
Tel.: 450 928-2550, ext. 252
jtrudel@innergex.com
No comments:
Post a Comment