Fourth Quarter Results
Generation of 905 gigawatt hours (GWh) for the fourth quarter was 22% higher than the 742 GWh generated in the same period last year and slightly above long-term average of 902 GWh. All regions reported improved generation except for Ontario which was well below normal due to weaker hydrology conditions. Despite the weaker fourth quarter, the Ontario region enjoyed its strongest year ever in 2008 at 6% above long term average.
The Quebec region’s generation of 397 GWh was higher than the prior year period and long-term average by 182 GWh and 43 GWh, respectively. This led to a 71% revenue increase over the fourth quarter of 2007 and contributed to the Quebec region’s second best year in terms of generation since the Fund’s inception. The New England Region ended a record 2008 with a strong fourth quarter, with quarterly revenues also benefiting from the appreciation in the US currency. In British Columbia, generation increased nearly 10% from the fourth quarter of 2007 and was 24% above long-term average for the fourth quarter.
Fourth quarter revenues of CAD39.9 million and income before non-cash items of CAD18.7 million increased by 20% and 65%, respectively, from the same period a year earlier. Fourth quarter distributions to unit holders totaled CAD15.0 million or 31 cents per unit.
The year 2008 was the strongest in the Fund’s history. Total generation of 4,436 GWh was 27% above the prior year and 13% above long-term average due to increased precipitation and water inflows in the Québec, Ontario and New England regions throughout the year.
In 2008, the Fund returned to a more normalized level of capital spending across its operations, having invested CAD16.8 million in capital expenditures and CAD3.5 million in major maintenance. The Fund currently expects to invest CAD17.3 million in capital expenditures and CAD4.5 million in major maintenance during 2009.
At December 31, 2008, the Fund had a strong liquidity position with CAD46.1 million available though its existing credit and hydrology facilities, and a current cash balance of CAD9.0 million.
“We are delighted to report the closing of this strategic transaction, which will lead to greater resource and regional diversification, and is expected to contribute significantly to the Fund maintaining its current annual distribution of CAD1.25 per unit on an after-tax basis past 2011,” added Legault.
“It has been a truly milestone year,” said Richard Legault. “Despite a very challenging economic backdrop, we achieved our strongest annual performance since the Fund was created. While strong hydrology prevailed throughout much of the year, our results are also a reflection of the quality of our assets and management’s focus on securing long-term, stable cash flows.”
