Montreal, August 10, 2004 – Boralex Power
Income Fund (the “Fund”) announces
that for the second quarter ended June 30, 2004,
revenue from energy sales were up 68% at $25.1
million, compared to $14.9 million for the same
quarter in 2003. Earnings before amortization,
depreciation, financial expenses and income taxes
(“EBITDA”) amounted to $14.0 million,
compared to $6.7 million a year earlier, an increase
of 109%. Consequently, net earnings totaled $6.2
million or $0.10 per trust unit, compared to $3.5
million or $0.09 per trust unit for the same period
in 2003.
This growth is primarily due to the contribution
of the hydroelectric segment and was sustained
by good hydrological conditions and the performance
of the U.S. power stations acquired on September
30, 2003. The hydroelectric segment alone accounted
for 53% of the Fund’s consolidated revenue,
compared to 23% a year earlier. The other segments
benefited from a contractual energy prices increase
of about 3%.
In the second quarter ended June 30, 2004, distributions
to unitholders totaled $13.3 million, compared
to $8.9 million in 2003. The balance of cash and
cash equivalents, including reserves for general
purposes and major maintenance, was $42.3 million
or the equivalent of $0.72 per trust unit, compared
to $12.0 million or $0.30 per trust unit in 2003.
For the six-month period ended June 30, 2004,
revenue from energy sales reached $57.5 million,
compared to $35.3 million in the corresponding
quarter in 2003, an increase of 63%. EBITDA totaled
$35.1 million, up 101% over the $17.5 million
reported in 2003. The Fund thus posted net earnings
of $18.7 million or $0.32 per trust unit, compared
to $11.0 million or $0.27 per trust unit for the
same period in 2003.
This increase is largely due to the acquisition
of two U.S. power stations on September 30, 2003,
and superior hydrological conditions over last
year in our existing power stations, combined
with the higher productivity of the power plants
in the other segments.
For the six months ended June 30, 2004, distributions
to unitholders totaled $26.6 million, compared
to $17.8 million in 2003. This difference takes
into account the issue of 18.5 million additional
units and the October 2003 increase in monthly
distributions following the acquisition of the
two U.S. hydroelectric power stations on September
30, 2003.
On July 12, 2004, the Fund announced the closing
of two private placements to refinance the bridge
loans put in place for the September 2003 acquisition
of two U.S. hydroelectric power stations. The
two placements consist of senior secured notes,
one for US$70.7 million, paying 6.2% interest
and maturing on August 31, 2013, and the other
for CA$35.0 million, paying 6.6% interest and
maturing on July 9, 2014. These issues will help
the Fund benefit from low and stable financing
costs for close to 10 years. Moreover, the CA$35.0
million senior secured notes will also allow for
additional debt to be issued in the future, assuming
certain covenants are met, allowing the Fund to
combine stable long-term financing costs with
flexibility for future growth.
The Fund’s notable performance in the second
quarter is reflected in its higher than anticipated
results, primarily due to the performance of the
power stations in the northeastern United States.
This, coupled with greater diversification in
terms of geography and production sources, as
well as the refinancing of its bridge loans, will
allow the Fund to ensure stable distributions
in 2004 and future years.
Boralex Power Income Fund is an unincorporated
open-ended trust that indirectly owns ten power
generating stations located in the province of
Québec and the United States producing
energy from different sources including wood-residue
or natural gas-fired thermal and cogenerating
facilities as well as hydroelectric power stations.
In total, these power stations have an installed
capacity of 190.0 MW. The Fund’s units are
listed for trading on The Toronto Stock Exchange
under the symbol BPT.UN.
Click
here to consult Results for Second Quarter of
2004
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