Transeastern Power Trust Provides Operational Update On Renewable Energy Portfolio
May 12, 2017
TORONTO, ONTARIO — May 12, 2017: Transeastern Power Trust ("Transeastern" or the "Trust") (TSX-V: TEP.UN; TEP.DB) is pleased to report that production of its renewable energy projects for the first quarter of 2017 was 19,570 MWh compared to 5,187 MWh in the first quarter of 2016, an increase of 277%. The increase is the result of 13,229 MWh of production from the Baia Wind project which was acquired by the Trust in the third quarter of 2016, as well as operational improvements implemented at the Trust's hydro projects. First quarter production for 2017 was up 14% on a like-for-like basis, compared to production of 17,132 MWh for the first quarter of 2016, showing a material improvement in the performance of the Trust's renewable energy portfolio.
During the first quarter of 2017, the Trust signed third party offtake contracts with the Romanian market leader in electric power distribution and supply, which holds 40% of the market share for electricity distribution to end users in Romania. The offtake contracts cover forecasted hydroelectric production and all related tradeable green certificates earned by the Trust until February 28, 2018.
In addition, the Trust has completed a cost rationalization exercise across its Romanian operations that management believes will result in a reduction of annual costs of approximately CAD$0.3 million and improved operating performance of the Trust's hydro projects.
J. Colter Eadie, Chief Executive Officer of Transeastern commented "The production results from the first quarter of 2017 are in line with our expectations for our portfolio. The addition of the Baia Wind project has acted as a hedge against the expected first quarter seasonal lows in production by the solar and hydro projects. Securing the offtake contracts with a European utility for the hydroelectric generation is a huge success for the Trust. We anticipate that the offtake contracts combined with the cost cutting measures will have a positive impact on the cash flows generated from our hydro projects over the remainder of the year."
For further information please contact:
|Ravi Sood||J. Colter Eadie||Mike Murphy|
|Chairman||Chief Executive Officer||Chief Financial Officer|
|+1 (647) 987-7663||+40 736 372 724||+1 (416) 625-5064|
The Trust, through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, has been formed to acquire interests in renewable energy assets in Romania, other countries in Europe and abroad that can provide stable cash flow to the Trust and a suitable risk-adjusted return on investment. The Trust seeks to provide investors with long-term, stable distributions, while preserving the capital value of its investment portfolio through investment, principally in a range of operational assets, which generate electricity from renewable energy sources, with a particular focus on solar and hydro power. The Trust intends to qualify as a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any "non-portfolio property" (as defined in the Tax Act). All material information about the Trust may be found under Transeastern's issuer profile at www.sedar.com.
Forward-Looking Statements Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "anticipates", "plans", "proposes", "estimates", "intends", "expects", "believes", "may" and "will". There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others: risks related to foreign operations (including various political, economic and other risks and uncertainties), the interpretation and implementation of the energy law, expropriation of property rights, political instability and bureaucracy, limited operating history, lack of profitability, high inflation rates, failure to obtain bank financing, fluctuations in currency exchange rates, competition from other businesses, reliance on various factors (including local labour, importation of machinery and other key items and business relationships), risks related to seasonality (including adverse weather conditions, shifting weather patterns, and global warming), a shift in energy trends and demands, a shift in energy generation in the European Union, vulnerability to fluctuations in the world market, the lack of availability of qualified management personnel and stock market volatility. Details of the risk factors relating to Transeastern and its business are discussed under the heading "Risks and Uncertainties" in Transeastern's annual management's discussion & analysis dated May 3, 2017, a copy of which is available on Transeastern's SEDAR profile at www.sedar.com. Most of these factors are outside the control of the Trust. Investors are cautioned not to put undue reliance on forward-looking information. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, Transeastern expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise. Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.