Montreal, November 15, 2004 – Boralex
Power Income Fund (the “Fund”) announces
that for the third quarter ended September 30,
2004, revenue from energy sales increased to $23.6
million compared to $15.0 million for the same
quarter in 2003. Earnings before amortization,
depreciation, financial expenses and income taxes
(“EBITDA”) were up 109 % to $13.4
million compared to $6.4 million a year earlier.
As a result, net earnings grew 83% to $6.6 million,
or $0.11 per trust unit, compared to $3.6 million
or $0.09 per trust unit for the same period in
2003.
This growth is primarily due to the contribution
of the two US hydroelectric power stations acquired
on September 30, 2003 and to the favorable hydrological
conditions experienced by the five other power
plants during the quarter. Revenue in this segment
almost quadrupled to $11.9 million compared to
$3.0 million a year earlier, generating 50% of
the Fund’s consolidated revenues. The wood-residue
segment reported higher revenue due to higher
prices, which more than offset the slight decrease
in production. The natural-gas cogeneration segment
reported lower revenue, mainly due to a temporary
reduction in steam sales and the difference in
the timing between the third and fourth quarters
of the maintenance period at the Kingsey Falls
plant.
In the third quarter ended September 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
$33.7 million compared to $33.5 million in 2003,
or the equivalent of $0.57 per trust unit for
both periods.
For the nine-month period ended September 30,
2004, revenue from energy sales reached $81.1
million, compared to $50.3 million for the same
period in 2003, an increase of 61%. EBITDA totaled
$48.5 million, up 103% over the $23.9 million
reported in 2003. The Fund thus posted net earnings
of $25.3 million or $0.43 per trust unit, compared
to $14.6 million or $0.36 per trust unit for the
same period in 2003.
This increase is largely due to the acquisition
of the two US hydroelectric power plants and the
contribution of existing power plants, which benefited
from better hydrological conditions than last
year. Results for the other segments were similar
to results in the same period a year earlier.
For the nine months ended September 30, 2004,
distributions to unitholders totaled $39.9 million,
compared to $26.6 million in 2003. This difference
takes into account the issue of 18.5 million additional
units and the October 2003 increase in monthly
distributions.
The Fund’s third quarter results were better
than expected and augur well for the final quarter
of the fiscal year. These results are mainly due
to improved geographic and segment performance
since September 2003. In addition, recent investments
in the Senneterre wood-residue thermal power station
should improve productivity at that plant. Lastly,
the refinancing of the Fund’s bridge loan
in July, combined with other factors such as the
hedging of its cash flow denominated in US dollars
and its long-term electricity sales contracts
for a weighted average of 20 years will enable
the Fund to make stable distributions in the fourth
quarter of 2004 and subsequent 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.
Certain statements in this release, including
statements regarding future results and performance,
are forward-looking statements based on current
expectations. The accuracy of such statements
is subject to a number of risks, uncertainties
and assumptions that may cause actual results
to differ materially from those projected, including,
but not limited to, the effect of general economic
conditions, increases in raw material costs, fluctuations
in currency exchange rates and adverse changes
in general market and industry conditions and
other factors listed in the Corporation’s
Ontario Securities Commission filings.
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