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Attention Business/Financial Editors
Plutonic Power Issues Progress Update, First Quarter Ended March 31, 2010 Financial Results
VANCOUVER, May 13 /CNW/ - Plutonic Power Corporation (the "Company")
(PCC: TSX) announced today a progress update and its financial results in
Canadian Dollars for the first quarter ended March 31, 2010.
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OVERVIEW
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During the first quarter of 2010, construction continued on a timely
basis at the East Toba River and Montrose Creek Project ("Toba Montrose").
Construction commenced at the Dokie Wind Project as did the commencement of
transportation of the wind towers and turbine equipment to site. In addition,
the Company and GE Energy Financial Services ("GE") were offered a 40 year
Electricity Purchase Agreement ("EPA") for the 124 MW Upper Toba Project. This
EPA was executed with BC Hydro in April.
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TOBA MONTROSE UPDATE
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Toba Montrose is being built with our partner GE through the Toba
Montrose General Partnership ("TMGP") in conjunction with our First Nations
partners, the Klahoose, Sliammon and Sechelt First Nations, and is fully
financed, on-budget and on-schedule to reach commercial operation during 2010.
All the electricity to be generated from Toba Montrose will be sold to BC
Hydro under a 35 year EPA
Milestones during the first quarter of 2010 include:
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- 93% completion of the engineering, procurement and construction
("EPC") contract
- Completed work includes the transmission line, East Toba
powerhouse, penstock and intake
- Ongoing work includes commissioning of East Toba plant, and
completion of Montrose powerhouse, penstock and intake
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The transmission line from the Toba Montrose Project is expected to be
energized in May for commissioning and testing of electrical components
related to the project. Original construction schedules called for commercial
operation of East Toba for July, and Montrose Creek in November 2010.
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DOKIE WIND PROJECT UPDATE
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During the fourth quarter of 2009, the Company and GE formed Dokie
General Partnership ("DGP"), to acquire, finance, complete the construction of
and operate the 144 megawatt ("MW") Dokie Wind Project in conjunction with our
First Nations partners, the Halfway River, West Moberly and Saulteau First
Nations and McLeod Lake Indian Band. DGP acquired the partially completed and
fully permitted Dokie Wind Project from EarthFirst Canada Inc. DGP arranged
debt financing of $175 million and the Company and GE contributed $52.5
million of project equity to finance the completion of the Dokie Wind Project.
The Dokie Wind Project is located 1,100 kilometres northeast of Vancouver,
near Chetwynd, BC and it will use 48 3-MW wind turbines to generate
approximately 333 gigawatt hours ("GWh") of electricity annually net of
transmission line losses. Completion of construction and commencement of
electricity sales to BC Hydro is scheduled for early 2011 under a 25 year EPA.
Mortenson Canada Corporation ("Mortenson") mobilized to site early
January to commence the balance of construction on the Dokie Wind Project. As
of March 31, subcontractors were active on all unfinished turbine site
locations. Deliveries of the remaining 40 turbines are in progress to a lay
down area in Chetwynd. All site roads are complete and Mortenson commenced
pouring of concrete foundations in mid-April. Support from the community has
been very positive.
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2010 UPDATES AND FORECASTS
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For the remainder of 2010, in addition to commencing commercial
operations at Toba Montrose and commencing the commissioning processes at the
Dokie Wind Project, Plutonic will continue to have a very busy year. Upper
Toba goals to be completed by year end are: to obtain construction permits,
licenses and authorizations; commence project financing discussions; select
and engage a contractor; conclude an agreement with the Klahoose First Nation
and enter into a formal partnership agreement with GE.
As well, an evaluation on the 156 MW Dokie Expansion Project is underway.
Once completed and if deemed feasible, Plutonic and GE would seek to obtain an
EPA with BC Hydro, obtain construction permits, licenses and authorizations,
seek project financing, select and engage a contractor, and finalize First
Nations agreements and enter into a formal partnership agreement with GE.
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FINANCIAL RESULTS
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For the first quarter ended March 31, 2010, the Company incurred a net
loss of $2.1 million ($0.03 net loss per common share) compared with a net
loss of $11.3 million ($0.26 net loss per common share) for the quarter ended
March 31, 2009. The Company's net loss for the quarter ended March 31, 2010 is
comprised of $2.1 million (March 31, 2009 - $2.1 million) in net cash
operating expenditures, and $28,929 in net non-cash operating gains (March 31,
2009 - $9.2 million loss), including share based compensation, share based
guarantee fees, and an unrealized gain on the fair value adjustment of
interest rate swaps.
As at March 31, 2010, the Company had $10.6 million in consolidated cash,
$44.6 million in consolidated cash restricted to construction and consolidated
working capital of $43.7 million. Excluding its respective proportionate 40%
share of TMGP cash and working capital and 51% share of DGP cash and working
capital as at March 31, 2010, the Company had $7.9 million in cash and $10.9
million in working capital.
As at March 31, 2010, the Company had recorded $253.4 million in long
term debt, $293.4 million in property plant and equipment and $5.8 million in
intangible assets, based on its 40% share in TMGP and 51% share in DGP. The
long term debt of TMGP and DGP are secured by the assets of TMGP and DGP
respectively and are non-recourse to the other assets of the Company.
This financial summary should be read in conjunction with the Company's
March 31, 2010 unaudited interim consolidated financial statements and
Management's Discussion and Analysis, both of which are available on
www.sedar.com and on the Plutonic Power Corporation web site at
http://www.plutonic.ca/s/FinancialReports.asp
About Plutonic Power Corporation
British Columbia based Plutonic Power is a Canadian leader in clean
energy development. Our vision is to create a legacy through the development
of renewable, reliable, clean energy projects. Plutonic is a partner in 340
megawatts of hydro and wind projects that are under construction. In 2010
commercial operations will start at the $660 million, 196 megawatt East Toba
River and Montrose Creek run-of-river hydroelectric project. Active
construction is also underway on the $227.5 million, 144 megawatt Dokie Wind
Project, diversifying Plutonic Power's clean energy portfolio. Plutonic is
committed to working in partnership with First Nations, stakeholder groups and
local communities in the development of all of its projects. By developing its
suite of projects, Plutonic will help British Columbia realize its goal of
becoming electricity self-sufficient by 2016 utilizing 90% clean domestic
generation sources, will create employment opportunities and will play a
significant role in the fight against climate change.
The TSX Exchange does not accept responsibility for the adequacy or
accuracy of this release. Caution Regarding Forward-Looking Statements - This
news release contains certain forward-looking statements, including statements
regarding the business and anticipated financial performance of the Company.
These statements are subject to a number of risks and uncertainties. Actual
results may differ materially from results contemplated by the forward-looking
statements. When relying on forward-looking statements to make decisions,
investors and others should carefully consider the foregoing factors and other
uncertainties and should not place undue reliance on such forward-looking
statements. The Company does not undertake to update any forward looking
statements, oral or written, made by itself or on its behalf.
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/For further information: Lisa May, Investor Relations, Office: (604)
669-4999 ext 1034, Cell: (604) 314-3362, lisa.may@plutonic.ca/
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