Alterra Power Corp. is pleased to report its financial and operating results for the three months ended March 31, 2013. For further information on these results please see Alterra's Unaudited Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis.
Alterra's financial statements consolidate 100% of the HS Orka and Soda Lake operations, 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%) and Soda Lake (100%) had been reported in accordance with Alterra's actual share of ownership at March 31, 2013 and for the three months then ended. Management believes that net interest reporting provides the clearest view of the Company's performance.
Highlights for the current quarter and subsequent period include:
- Consistent revenue and EBITDA (net interest): Revenue and EBITDA of $17.6 million and $6.4 million respectively were largely in line with the comparative quarter ($17.3 million and $7.3 million) on a pro forma basis (see "pro forma comparative numbers" below). EBITDA was down by $0.9 million primarily due to off-season repairs at the Toba Montrose facility and lower revenue at Dokie 1.
- Steady gross margin: Gross margins of 29.1% of revenues, up slightly from 28.6% in the comparative quarter.
- Reliable power production: 441,558 MWh of clean power production from Alterra's six power plants, consistent with the comparative quarter's output of 442,152 MWh. Alterra's net interest in generation totalled 285,737 MWh.
- New geothermal production wells: Two wells were completed at Alterra's Reykjanes facility in Iceland, with positive resource indications and costs of $1.1 million less than the budgeted amount.
- ABW Solar acquisition: The 50 MW Ontario solar facility began commercial operations. Alterra expects to complete the acquisition of its 10% interest in the second quarter.
- Montrose rockslide repairs: Repair work is fully underway with return to service expected in the summer of 2013. The damage and lost revenue will be fully covered by insurance other than $0.6 million of deductibles that were recorded in December 2012.
- South America partnership: Alterra is in final-stage negotiations for the next-phase joint venture agreement with Energy Development Corporation ("EDC"). Current plans call for EDC to invest over $65 million for a 70% stake of the Chile/Peru partnership.
- HS Orka dividend: Alterra's Icelandic subsidiary HS Orka declared a dividend of $1.2 million during the quarter. Alterra's share is 66.6% and the cash is expected to be received by Alterra's Swedish subsidiary in the second quarter of 2013.
- New solar partnership: Alterra has partnered with Greenbriar Capital Corp. to develop 100 MW of solar facilities in Puerto Rico.
John Carson, Alterra's CEO, said, "I'm pleased to report another strong quarter of operational performance, substantially in line with last year. We're looking forward to resuming full production at the Toba Montrose facility by August, and beginning construction on the Jimmie Creek hydro facility later this year."