Innergex Power Income Fund (TSX: IEF.UN) announces increases of 41 % in power generation, 48 % in gross operating revenues and 25 % in net distributable cash for third quarter 2008. Good performance at its hydroelectric facilities and two wind farms continues to drive growth for the Fund.
OPERATING RESULTS
The Funds' facilities generated 236,778 MW-hr during the third quarter of 2008, while power generation during the corresponding period of 2007 totalled 167,988 MW-hr. This represents a 41 % increase in power generation, which was 12 % above the long-term average. This growth is mainly attributable to the acquisition of the two wind farms, completed in December 2007 and to favourable hydrology conditions. Power generation by the Fund's hydroelectric facilities was 12 % above the long-term average and 17 % greater than the corresponding period of 2007, while power generation at the wind farms exceeded the long-term average by 8 %. During the third quarter of 2008, this level of power generation resulted in gross operating revenues of $15.4 million, as compared to $10.4 million posted for the same period of 2007. Earnings before interest, provision for income taxes, depreciation and amortization, other revenues and expenses and minority interest ("EBITDA") totalled $12.5 million during the third quarter of 2008, as compared to $8.3 million for the corresponding period of 2007.
For the nine-month period ended September 30, 2008, power generation totalled 642,095 MW-hr. This represents a 41 % increase over the 454,907 MW-hr generated in the corresponding period in 2007. Power generated at the two wind farms acquired in December 2007 accounted for 31 % of this growth, while the excellent performance at the Fund's hydroelectric facilities contributed another 10 % due to favourable hydrology conditions. For the nine-month period, power generation was 1 % above the long-term average. EBITDA for the nine-month period ended September 30, 2008 totalled $36.1 million, as compared to $23.2 million posted for the same period of 2007.
NET EARNINGS
For the third quarter of 2008, the Fund posted net earnings of $3.8 million ($0.13 per unit), as compared to $3.5 million in net earnings ($0.14 per unit) for the corresponding quarter of 2007. For the nine months ended September 30, 2008, the Fund posted $10.5 million in net earnings ($0.36 per unit), as compared to a net loss of $37.0 million (net loss of $1.50 per unit) for the corresponding period of 2007. It is important to note that the Fund recorded a $47.2 million provision for future income taxes in the first nine months of 2007 following the Government of Canada's adoption of legislation under which trusts will be taxed.
NET DISTRIBUTABLE CASH AND CASH DISTRIBUTIONS
Net distributable cash for the quarter and nine-month period ended September 30, 2008 was $8.2 million and $22.0 million, respectively, as compared to $6.6 million and $17.4 million, respectively, for the corresponding periods of 2007. The distribution payout ratios for the third quarter and nine-month period ended September 30, 2008 were 89 % and 100 %, respectively, a slight improvement over ratios of 90 % and 103 %, respectively, in the corresponding periods of 2007. Given seasonal variations, power generation in the third quarter does not usually generate sufficient distributable cash to complete distributions to unitholders. However, this year, favourable performance by the hydroelectric facilities and wind farms resulted in net distributable cash that was 12 % greater than declared distributions. -- www.cnxmarketlink.com
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