Run of River Power Inc. (TSXV: ROR) is pleased to announce the release of financial and operating results for its fourth quarter and year ended December 31, 2007. The consolidated financial statements, accompanying notes and Management Discussion and Analysis will be available on SEDAR on April 28, 2008 and on ROR's website. All figures reported herein are Canadian dollars unless otherwise stated.
EBITDA is earnings before interest, taxes, depreciation and amortization and is not a measure under Canadian Generally Accepted Accounting Principles and may not be comparable to similar measures presented by other companies. Refer to Non-GAAP measures section of the MD&A for an explanation and reconciliation.
OPERATING RESULTS
During 2007, ROR outperformed 2006 in terms of revenue, megawatt hours generated, EBITDA, and cash used in operations. ROR earned revenue from electricity sales of $2.2 million versus $1.4 million for 2006, an increase of $0.8 million or 36%. Generation in 2007 was 38,514 MWh versus 24,809 MWh in 2006, an increase of 13,705 MWh or 55%. 2007 EBITDA was $181,000 versus ($966,000) in 2006. The net loss for the year was $ 1.4 million versus $1.5 million in 2006. Cash used in operations of $53,000 in 2007 improved by $1.2 million over 2006.
During the fourth quarter of 2007, ROR recorded revenue of $563,000 compared to $120,000 for 2006. Total production for the fourth quarter was 9,847 MWh compared to 2,115 MWh in 2006. EBITDA of $172,000 increased from ($1.2 million) in Q4 2006. Similarly, cash flow from operations of $66,000 in Q4 2007 rose from cash used in operations in Q4 2006 of $1.1 million.
These significant improvements can be attributed to the following: 1) 2006 penstock repairs resulted in a 35 day shutdown in that year; 2) these repairs added 1 MW in realized capacity in 2007; and, 3) favourable weather and a large snowpack extended the runoff period later into the 2007 year.
In June 2007, the Corporation issued 27.5 million common shares pursuant to a private placement for gross proceeds of $11.0 million. These proceeds are being deployed on development initiatives with approximately $9.2 million of cash and marketable securities on hand at year-end to finance such projects.
DEVELOPMENT INITIATIVES
Run-of-River Projects
The Company's wholly owned subsidiary Northwest Cascade Power Ltd. submitted an application for a park boundary adjustment to BC Parks (Ministry of Environment) in respect of its Upper Pitt River project. The park boundary adjustment was required to provide for a 4.6 km long transmission line corridor across a remote mountain pass in Pinecone Burke Provincial Park. In March 2008, BC Environment Minister Barry Penner advised he would not recommend to Cabinet or the BC Legislature acceptance of a park boundary adjustment proposal submitted for Pinecone Burke Provincial Park.
Due to its close proximity to grid connection and to the city of Vancouver, it is the Corporation's belief that the proposal, supported by a series of detailed engineering, environmental, and socio-economic studies, as well as consultations with First Nations, governments and other stakeholders, offers one of the best opportunities to provide low impact, renewable energy to BC's largest electrical demand centre, while fostering the development of green energy.
The Corporation continues to advance a number of other run-of-river hydroelectric projects which, in aggregate, exceed 400 MW and are in the early stages of development.
Biomass Projects
The Corporation currently has two large scale biomass power initiatives totaling 90 MW of base load capacity under development.
The 60 MW Tsilhqot'in Power project is a joint venture between the Corporation's wholly owned subsidiary, Western Biomass Power Corp., and the Tsilhqot'in National Government. The project will utilize mountain pine beetle damaged timber, which has devastated over eight million hectares of pine forests in central British Columbia for it's fibre supply.
The second project is the 30 MW Suskwa Biomass Power project to be located near New Hazelton in Northwest British Columbia. The Corporation, via Western Biomass, agreed to purchase 80% of Pacific Northwest Biomass Corporation whereby PNBC holds a 100% interest in the project with an option for its partners, the Suskwa Chiefs, to acquire up to 40% of the facility. -- www.cnxmarketlink.com
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