Boralex Power Income Fund (Boralex Power) has reported revenues of CAD109.3 million for the year-end 2008, up CAD7.1 million, compared with the revenues in the previous year-end. It has also reported a net loss of CAD5.8 million, or CAD0.10 per trust unit, for the year-end 2008, compared with the net loss of CAD35.7 million, or CAD0.60 per trust unit, in the previous year-end.
The company also reported earnings before interest, taxes, depreciation and amortization (EBITDA) of CAD57.7 million, up CAD2.5 million, compared with the EBITDA in the previous year-end.
Growth stems mainly from higher electricity and steam selling prices and increased power generation by the hydroelectric segment.
As at December 31, 2008, revenue from the hydroelectric segment amounted to CAD47.2 million, up a substantial 16.5% compared to the same period a year earlier. Favourable hydrology, particularly in the first quarter and second semester of 2008, had a positive impact on power generation at the Fund’s U.S. and Canadian facilities, which exceeded their historical averages.
In the wood residue segment, fiscal 2008 closed with revenues of CAD31.8 million, down 10.9% from 2007. The wood-residue thermal power stations generated EBITDA of CAD9.3 million as at December 31, 2008, compared to CAD16.5 million at the same date a year earlier. The lower figures are primarily due to the higher raw material costs and temporary downtime at the Dolbeau and Senneterre plants. These two plants have, however, been back in operation since mid-November, in time to benefit from capacity premiums.
The natural gas cogeneration plant earned revenue of CAD30.3 million in 2008, up 17.0% year over year, due primarily to increased power generation and index-linked electricity and steam selling prices. EBITDA rose to CAD14.8 million, up 18.4% from last year due to higher selling prices and capacity premiums.
Despite the world economic crisis, the nature of the Fund’s fixed-price contracts and the quality of its assets allow for a positive outlook for 2009. The wood-residue supply situation is an ongoing concern and the Fund will continue to regularly assess the situation to ensure it finds the best operational strategy for its facilities.
Note that in the fourth quarter 2008, the Fund recorded a non-cash CAD33.9 million impairment of goodwill and intangible assets of the Dolbeau facility. Excluding these items and an amount of CAD7.6 million of future income tax related to Canadian public trusts, the Fund would have generated net earnings of CAD20.5 million (CAD0.35 per unit).