Alterra Power Announces Results for the Quarter Ended March 31, 2016 and Annual General Meeting
Press Release
(under IFRS and all amounts in US dollars unless otherwise stated)
VANCOUVER, May 10, 2016 – Alterra Power Corp. (TSX: AXY) (“Alterra” or the “Company”) is pleased to report its financial and operating results for the quarter ended March 31, 2016. For further information on these results please see Alterra’s Condensed Consolidated Interim Financial Statements and Management’s Discussion and Analysis.
At March 31, 2016, Alterra consolidated 100% of the results of operations from its Icelandic subsidiary HS Orka, while Alterra’s interests in the Toba Montrose, Dokie 1 and Shannon renewable power projects were accounted for as equity investments. In certain statements in this news release, Alterra’s results are disclosed as Alterra’s “net interest”, by which the Company means the effective portion of operating results that the Company would have reported if each of HS Orka (66.6%), Toba Montrose (40%), Dokie 1 (25.5%), Shannon (50% sponsor equity interest) and Soda Lake (100% until Soda Lake was sold on January 30, 2015) had been reported in accordance with Alterra’s actual share of ownership at March 31, 2016 and for the three months then ended. Management believes that net interest reporting provides the clearest view of Alterra’s performance.
Highlights for the quarter and subsequent period include:
- Continued strong generation at Toba Montrose: Consistent with comparative quarter Toba Montrose exceeded its first quarter forecast with generation at 105.4%, although down from the comparative quarter (248% of budget). With exceptional generation in April Toba Montrose has achieved year-to-date record generation through April (174% of budget).
- Announcement of landmark deep drilling project at HS Orka: Subsequent to the period, the last major contract was signed for a 5,000 meter deep drilling program at the Reykjanes plant in Iceland. The project will test for very high energy geothermal resources below the current Reykjanes geothermal field, and any resulting power will be utilized at the Reykjanes power plant.
- Jimmie Creek construction nearing completion: Construction for the 62 MW hydro project continued with completion projected to occur on-time and within budget in the summer of 2016. Progress during the current quarter included completion of the penstock, switchyard and tie-in to the transmission line. The project is expected to generate first power in June 2016.
- USA wind and solar projects: The Company continued to advance its early-stage wind projects and is working towards the acquisition of several new greenfield and existing development assets.
- Distributions: The Company received distributions during the quarter from equity investments of $3.9 million (plus a separate $0.6 million return of capital from Shannon) and HS Orka declared a $2.8 million dividend of which the Company’s share is $1.9 million.
- Adjusted EBITDA and revenue: Consolidated and net interest Adjusted EBITDA decreased by 27% to $6.4 million and 33% to $4.3 million, respectively, and consolidated and net interest revenue decreased by 9% to $14.9 million and $13.9 million, respectively. The decrease in EBITDA and revenue is primarily due to the lower quarterly generation.
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