Transeastern Power Trust Reports Third Quarter 2015 Results
November 30, 2015
TORONTO, ONTARIO – November 30, 2015: Transeastern Power Trust (“Transeastern” or the “Trust”) (TSX-V: TEP.UN; TEP.DB) today released its unaudited financial results for the third quarter ended September 30, 2015. All amounts in this release are expressed in Canadian dollars unless otherwise indicated.
- The Trust completed the acquisition of SC Power L.I.V.E. One SA and SC Corabia Solar SRL significantly increasing production capacity by adding a portfolio of solar assets with 16MWp to its producing asset base increasing the Trust’s installed capacity by more than 300%, and closed the main tranche of its subscription receipt financing as well as a $5 million debt facility
- Produced a total of 8,233 MWh of energy (959 MWh from the Hydro Projects and 7,274 from the Solar Projects) in the third quarter of 2015 and increased total production by over 433% generating revenue of $1,540,749 for the three months ended September 30, 2015 versus $130,290 for the three months ended September 30, 2014, an increase of over 1083%
- Declared and paid third quarterly distribution of 2015 $0.021875 per unit of the Trust (each, a “Unit”) in accordance with the targeted dividend of $0.0875 on an annualized basis through a combination of cash and Unit issuances to unitholders who elected to participate in the Trust’s Distribution Reinvestment Plan
- Incurred net loss of $3,700,615 and an adjusted net loss of $1,690,0201 (net losses include non-cash gains of $465,781 relating to mark to market revaluations of debentures, non-recurring losses of $948,019 on the settlement of debt instruments, financing costs of $1,168,662 as well as non-cash charges of $359,695 relating to the increase of the estimated fair value of milestone units) during the three months ended September 30, 2015 with basic and diluted losses of $0.17 per Unit
- Earned operating margin2 of $908,144 for the quarter ended September 30, 2015 versus the quarter ended September 30, 2014 where operating revenues were $96,450.
J. Colter Eadie, Chief Executive Officer of Transeastern commented “We are starting to see the production results from the recently acquired solar acquisitions which we believe will prove to be highly accretive. The diversification of power generation sources benefitted the Trust in the third quarter as good production from the solar assets has offset the challenging hydrology conditions affecting the hydro projects this summer. The completion of the Mediterranean acquisition strengthens Transeastern’s balance sheet significantly as we continue to pursue opportunities to further grow the business.”
1 Adjusted net loss is a non-GAAP measure that removes non-cash charges relating to mark to market losses on our debentures, the revaluation of our Milestone units, non-recurring settlement losses and financing charges. Refer to “Review of Operations” in the Trust’s Management’s Discussion and Analysis for the three month period ended September 30, 2015 for further details.
2 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 three month period ended September 30, 2015 for further details.
For further information please contact:
|Ravi Sood||J. Colter Eadie||Michael Murphy|
|+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 management discussion and analysis dated November 27, 2015, 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.