For the fourth quarter of 2008, revenue increased to CAD56.5 million as compared to CAD44.3 million in the fourth quarter of 2007. The increase in revenue is primarily due to higher energy production and energy rates in the Renewable Thermal Energy divisions. The year over year increase is due to higher energy production and energy rates in the Renewable and Thermal Energy divisions and growth due to increased rates charged to customers in the Utility Services division.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) was CAD23.3 million in the fourth quarter as compared to CAD18.5 million in the fourth quarter of 2007.
The increase in EBITDA is primarily related to increased earnings from operations due to improved hydrological conditions and higher gas prices, and increased interest, dividend and other income due to gains on the sale of certain assets as compared to the fourth quarter of 2007. EBITDA for the year ended December 31, 2008 increased to CAD90.0 million as compared to CAD86.2 million for 2007. The increase is primarily due to improved hydrological conditions and higher gas prices at the co-generation facilities that are passed on to the customer in the energy price.
Net loss in the fourth quarter of 2008 was CAD21.1 million or CAD0.27 per unit as compared to net earnings of CAD7.6 million or CAD0.11 per unit for the fourth quarter of 2007. The net loss in the fourth quarter of 2008 includes CAD30.6 million of unrealized mark to market losses on derivative financial instruments resulting from changes in both foreign exchange and interest rates.
The net loss for the year 2008 includes CAD42.4 million of unrealized losses on derivative financial instruments. The decrease in net earnings was primarily the result of unrealized mark to market losses on derivative financial instruments resulting from changes in both foreign exchange and interest rates.
Cash available for distribution in the fourth quarter of 2008 was CAD18.0 million or CAD0.23 per unit as compared to CAD19.9 million or CAD0.26 per unit in the fourth quarter of 2007. During the fourth quarter, Algonquin Power distributed CAD0.06 per trust unit. For the year 2008, cash available for distribution totalled CAD65.1 million or CAD0.84 per unit as compared to CAD72.3 million or CAD0.95 per unit in 2007. During 2008, Algonquin Power distributed CAD0.75 per unit.
Performance Summary for the fourth quarter of 2008:
Revenue of CAD56.5 million in Q4 2008 as compared to CAD44.3 million in Q4 2007.
EBITDA of CAD23.3 million in Q4 2008 as compared to CAD18.8 million in Q4 2007.
Net loss of CAD21.1 million or CAD0.27 per trust unit in Q4 2008 as compared to net earnings of CAD7.6 million or CAD0.11 per trust unit in Q4 2007.
Cash available for distribution of CAD18.0 million or CAD0.23 per trust unit in Q4 2008 as compared to CAD19.9 million or CAD0.26 per trust unit in Q4 2007. Distributions for the fourth quarter of 2008 were CAD0.06 per trust unit.
Performance Summary for the year ended December 31, 2008:
EBITDA of CAD90.0 million for the year 2008 as compared to CAD86.2 million in 2007.
Cash available for distribution of CAD65.1 million or CAD0.84 per trust unit in the year 2008 as compared to CAD72.3 million CAD0.95 per trust unit in 2007. Distributions for the year 2008 were CAD0.75 per trust unit.
“Algonquin Power’s fourth quarter showed strong performance in a challenging economic environment and we are progressing in the execution of our strategic focus in order to achieve our goals of growth and value creation”, stated Dave Kerr, executive director of Algonquin Power. “We have been focusing on organic growth within our existing assets, we have been moving forward with our Greenfield development projects, and we are beginning to see increasing opportunities to acquire high quality assets at reasonable prices due to the changing economic climate. Our change in distribution policy has improved our financial flexibility, which is critical in the current business environment, and has placed us in a unique position to continue investing in the business and to be able to take advantage of growth opportunities. Algonquin Power remains committed to prudent financial management, building a strong balance sheet and maintaining our distribution level for the long-term”.