CALGARY, Aug. 12 /CNW/ - Pristine Power Inc. ("Pristine" or the
"Company") today announced its financial results for the quarter ending
June 30, 2008 and provided updates to its construction activities at the East
Windsor Cogeneration Centre and Enpower projects as well as its development
initiatives in British Columbia and Ontario. Pristine has filed with Canadian
securities regulatory authorities its unaudited financial statements and
related Management's Discussion and Analysis for the three and six months
ended June 30, 2008. These filings are available for review on the
Corporation's SEDAR profile at www.sedar.com and on Pristine's website at
www.pristinepower.ca.
"In the second quarter of 2008 the Company made significant progress with
its three major projects under construction and in the development of new
projects," noted Mr. Jeffry M. Myers, President and Chief Executive Officer.
"Construction of Enpower's project at Savona was completed and is expected to
be operational in the third quarter. Completion and commercial operations of
Enpower's other project at 150 Mile House is also expected in the next
quarter. Progress on the East Windsor Cogeneration Centre project remains on
track and on budget with commercial operation expected in the third quarter of
2009. The Company also actively pursued additional growth submitting three
proposals totaling 40MW under BC Hydro's Bioenergy Call for Power. In addition
the Company continues to develop a project for submission into the Ontario
Power Authority's Request for Proposals for approximately 350 MW of Peaking
Generation in the Northern York Region, with the bid submission expected to be
in the fourth quarter of 2008."
Financial and Operating Highlights
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For the three month For the six month
period ended period ended
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($000s) June 30, June 30, June 30, June 30,
2008 2007 2008 2007
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Revenue 516 206 695 463
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Expenses 2,517 1,126 4,247 1,884
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Net income (loss) (1,936) (221) (3,784) (722)
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Net income (loss) per
share
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Basic and diluted (0.06) (0.02) (0.16) (0.07)
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Total assets 179,135 17,200 179,135 17,200
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Long term debt 88,413 - 88,413 -
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Shareholders' equity 60,932 5,537 60,932 5,537
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Funds used in
operations(1) (1,553) (899) (2,949) (1,374)
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Funds used in
operations per share
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Basic and diluted(1) (0.06) (0.09) (0.12) (0.13)
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(1) Non-GAAP measure
In the three months ended June 30, 2008, Pristine incurred a net loss of
$1.9 million ($0.06 per share basic and fully diluted) compared to a loss of
$0.2 million ($0.02 per share basic and fully diluted) in the same period of
2007. Year-to-date, the Company reported a net loss of $3.8 million ($0.16 per
share basic and fully diluted) compared to a loss of $0.7 million ($0.07 per
share basic and fully diluted) in the first six months of 2007. Increased
development, stock based compensation and general administrative costs,
partially offset by realized foreign exchange gains, accounted for the
increased loss in both the second quarter and year-to-date 2008 results
compared to the same periods in 2007. Development activities increased in 2008
as the Company submitted three proposals totaling 40 MW in June 2008 under BC
Hydro's Bioenergy Call for Power and continues to develop a project for
submission into the Ontario Power Authority's Request for Proposals for
approximately 350 MW in the Northern York Region. Higher general and
administrative costs reflect increased salaries and wages due to an increased
staff complement to support the Company's development and construction
initiatives and upcoming operations. Funds used in operations during the
second quarter of 2008 were $1.6 million ($0.06 per share basic and fully
diluted) compared to $0.9 million ($0.09 per share basic and fully diluted) in
the second quarter of 2007. Year-to-date funds used in operations were
$2.9 million ($0.12 per share basic and fully diluted) compared to $1.4
million ($0.13 per share basic and fully diluted) during the first six months
of 2007. Increased use of funds during the quarter and year-to-date 2008
compared to 2007 reflect the aforementioned higher development and general and
administrative costs.
On April 18, 2008, the Company's agents exercised their over-allotment
option and an additional 1,250,000 common shares were issued for net proceeds
of $4.6 million.
Projects under Construction
Construction of the Company's projects remained on track and on budget in
the second quarter of 2008.
East Windsor Cogeneration Centre
--------------------------------
Construction of the 84 MW East Windsor Cogeneration Centre continued in
the second quarter of 2008 on schedule and on budget. During the second
quarter, the once-through steam generators were received at site and
installation is now substantially complete. As at August 12, 2008, the GE
LM6000 gas turbine generator sets have been delivered to site and installation
has commenced. Foundation work and construction of the switchyard and
interconnect is ongoing. The project remains on track for commencement of
commercial operations in the third quarter of 2009. At June 30, 2008,
$133.4 million of the total expected project costs of $207 million had been
incurred with $37.0 million incurred in the second quarter of 2008. Pristine
holds a 25% effective working interest in the project.
EnPower Projects
----------------
At the 5 MW Savona and 5 MW 150 Mile House Enpower ERG(R) waste heat
recovery generation projects, construction also continued in the second
quarter of 2008. Construction of the Savona project was completed in July 2008
and commissioning commenced in August with the first MW generated on August 2,
2008. On August 11, 2008, the Savona project successfully completed its 72
hour performance test and commencement of commercial operations is expected by
August 31, 2008. At the 150 Mile House site, assembly of all major components
is nearly complete and commissioning is expected to begin in September, 2008.
The total construction cost of the Enpower projects is on budget and expected
to be approximately $31.5 million. At June 30, 2008, $24.9 million of the
total expected costs had been incurred with $10.2 million incurred in the
second quarter of 2008. Pristine holds a 50% working interest in the projects,
which will be reduced to 25% upon completion of the related project financing,
expected to be finalized in the third quarter of 2008.
Projects under Contract
Mackenzie Green Energy Centre
-----------------------------
Development of the proposed 65 MW (thermal equivalent) biomass fired
Mackenzie Green Energy Centre, in which the Company holds a 35% working
interest, continued in the second quarter of 2008.
