Transeastern Power Trust Reports First Quarter 2017 Results
May 29, 2017
TORONTO, ONTARIO — May 29, 2017: Transeastern Power Trust ("Transeastern" or the "Trust") (TSX-V: TEP.UN; TEP.DB) has released its unaudited financial results for the quarter ended March 31, 2017. All amounts in this release are expressed in Canadian dollars unless otherwise indicated.
- Produced 19,570 MWh of energy for the quarter ended March 31, 2017 compared to 5,187 MWh in the first quarter of 2016, an increase of 277% and generated revenue of $2,779,970, with $790,804 from the sale of electricity and $1,989,166 from the sale of green certificates ("GCs").
- Earned operating margin' (revenues less operating expenses) of $2,001,405 for the quarter, an increase of 218% over the operating margin of $628,059 for the first quarter of 2016 (see reconciliation of operating margin under "Non-GAAP Measures").
- The Trust closed a $3.8 million secured debt facility on January 20, 2017 and repaid the Sprott debt facility early.
- During the quarter, the Trust completed a cost rationalization exercise across its Romanian operations that management believes will result in a reduction of annual costs of approximately $300,000 and improved operating performance of the Trust's hydroelectric assets.
J. Colter Eadie, Chief Executive Officer of Transeastern commented "We are now seeing the production increases expected as a result of the Baia Wind acquisition in 2016 and the implementation of cost cutting and efficiency measures across the business. We remain focused on optimizing and improving the performance of our current renewable energy portfolio and continue to pursue new acquisitions that are accretive to the Trust."
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|
|[email protected]||[email protected]||[email protected]|
1 Operating margin is a non-GAAP measure calculated by deducting cost of sales from revenues. Refer to "Review of Operations" in the Trust's Management's Discussion and Analysis for the year ended December 31, 2016 for further details.
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.