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Run of River Power Reports Third Quarter Results

^{Published on 2010-11-25 14:35:34 - Market Wire}
 

VANCOUVER, Nov. 25, 2010 /CNW/ - Run of River Power Inc. ("ROR Power" or "the Company") (TSX-V: ROR) today announced financial and operating results for the third quarter ended September 30, 2010. The management discussion and analysis, consolidated financial statements and accompanying notes will be filed on SEDAR and posted on ROR Power's website ([ www.runofriverpower.com ]). All figures are in Canadian dollars unless otherwise stated.

Highlights

• Production for Q3 at the Company's Brandywine run-of-river power generation facility exceeded seasonal average.
• Environmental permitting and detailed engineering for the 25 MW Skookum Creek project in the Mamquam Cluster continues on schedule with commercial operations expected in Q3 2013.
• 34 MW Tsilhqot'in Power Project and 34 MW Suskwa Power Project proposals submitted into BC Hydro's Bioenergy Phase 2 Call with selection of preferred proponents scheduled for mid-January 2011 and EPA signings in April 2011.

"With improved water flows and performance enhancements, the Brandywine facility experienced substantially increased power generation from last year," said Richard W. Hopp, President and CEO.  "In addition, we continue to make good progress on our portfolio of run-of-river and biomass projects. Environmental permitting and detailed engineering for the 25 MW Skookum Creek project are progressing well, with the start of construction expected in Q3 2011. We submitted our two biomass projects into BC Hydro's Bioenergy Phase 2 Call in October 2010 and expect a response in early January 2011."

Financial Summary

⁽¹⁾ EBITDA is earnings before interest, taxes, depreciation and amortization and is not a measure under Canadian Generally Accepted Accounting Principles ("GAAP") and may not be comparable to similar measures presented by other companies. Refer to Non-GAAP measures section of the MD&A for an explanation and reconciliation.

Operating Results

Electricity sales during the third quarter of 2010 totaled $698,624, an increase of 61% from the same quarter of 2009.  The gain resulted from a 60% increase in electricity generated, to 11,931 MWh.

For the first nine months of 2010, electricity sales totaled $1,470,948, representing an increase of 34% from the same period last year.  Year-to-date electricity production increased by 33% to 25,121 MWh. The increase in electricity generation and sales is attributable to increased water flows and performance and reliability improvements at the Brandywine Creek facility.

Net loss for the third quarter totaled $678,604, an increase of $260,525 from the same quarter in 2009. The nine-month net loss increased by $620,068 to $2,101,383.  The increase in net loss for the quarter and year to date is primarily attributable to an increase in planned major maintenance expenses at the Brandywine facility and increased non-recurring general and administrative expenses. Similarly, funds used in operations were $793,710 in the third quarter of 2010, compared to $112,369 last year.  For the nine-month period, the total was $1,540,320 compared to $922,735 in 2009.

Non-GAAP Measures

The Company reports its financial position, results of operations and cash flows in accordance with Canadian generally accepted accounting principles ("GAAP") in Canadian dollars.

About Run of River Power Inc.

ROR Power develops renewable, sustainable energy through its portfolio of run-of-river and biomass projects. The Company operates an Eco Logo(C) certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that generates cash flow under a 20-year contract with BC Hydro. ROR Power is well positioned for profitable growth through power generation initiatives that include its Mamquam Power Project, selected by BC Hydro for an Electricity Purchase Agreement. ROR Power's total development potential, in excess of 715 MW, represents a significant opportunity to help BC meet its rising demand for clean, sustainable power and achieve energy self sufficiency by 2016.

Forward-Looking Statements

Statements in this release which describe Run of River Power Inc.'s intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve unknown risks and uncertainties which may cause the actual results, performances or achievements of Run of River Power Inc. to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. Run of River Power Inc. may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward-looking statements as required pursuant to applicable securities laws.

Neither 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.

[ www.runofriverpower.com ]