For the fiscal year ended 30 September 1999, Canada“s Boralex Inc., an independent producer of hydroelectric and thermal power, reported earnings of C$ 64.8 million and a net income of C$ 5.2 million…
For the fiscal year ended 30 September 1999, Canada“s Boralex Inc., an independent producer of hydroelectric and thermal power, reported earnings of C$ 64.8 million and a net income of C$ 5.2 million or C$ 0.25 per share. In comparison with the same period in 1998, these results represent an increase of 149% over earnings of C$ 26 million and a net profit 13 times higher than last year“s C$ 0.4 million or C$ 0.00 per share. The net profit margin for the fiscal year ended 30 September 1999 is 8% and the after tax return on shareholder“s equity is 11%. The increase in third-quarter results was also significant, with the Corporation posting a net profit of C$ 1.4 million, or C$ 0.06 per share, against earnings of C$ 18 million, compared to a net loss of C$ 0.1 million, or C$ 0.01 per share, against earnings of C$ 5.6 million for the same period in 1998. “We“re very satisfied with the level of performance, which was attained principally through diversification in our energy production modes, allowing us to maintain year-long profitability while decreasing the seasonal nature of results,” said Boralex“s executive vice-president, Jacques Gauthier. “We have diversified our operations geographically through acquisitions in the deregulated market in the Northeastern US. In addition to raising our generating capacity from 60 MW to 158 MW, recent acquisitions have also allowed us to acquire leading-edge expertise and highly-qualified resources related to forest-waste energy production, which will enable us to co-ordinate faster and more efficient growth in the green or renewable energy market.” Earnings generated through operations (before changes in working capital) reached C$ 2.5 million in the fourth quarter of 1999, a sharp increase over the C$ 0.5 million figure recorded for the same period last year. In the year ended 30 September 1999, earnings generated through operations reached C$ 14.6 million, an almost threefold increase over the C$ 5.4 million recorded for the same period last year. During the same quarter, Boralex invested C$ 6.5 million in capital costs and other assets. On 30 September 1999, shareholders“ equity totalled C$ 48.1 million, compared to C$ 43.3 million on 30 September 1998. Long-term debt was C$ 160.4 million, compared to C$ 88.4 million one year prior. The higher debt level resulted chiefly from the acquisition of a 20-MW forest-derived-waste co-generation power station in Dolbeau, Quebec from Produits Forestiers Alliance. Following a decree adopted by the Quebec Government regarding the issuance of a certificate of authorization, on 3 November 1999 Boralex announced its intention to undertake construction of a 30-MW thermal power generating station in Senneterre (Abitibi). Boralex is to invest approximately C$ 50 million to bring the project to completion. Since this type of power station uses forest-derived waste (tree bark, tops, and branches) as fuel, it will significantly reduce bark-landfill problems in the region. Electricity produced will be sold to Hydro-Quebec under a long-term contract arrangement. The power station is scheduled to come on-stream in the summer of 2001. In the coming financial year, Boralex will benefit from the results derived through acquisitions concluded in 1999 for the entire year. As well, the company said it forecasts a healthy climate for its facilities situated in the Northeastern-US market due to continuing strong demand and sustained strength in price levels. Currently, work is underway at Boralex on power-generating-station construction projects which, once finalized over the next 18 to 24 months, will increase production capacity to 228 MW from the current 158 MW. In addition to Senneterre and Cabano, the Corporation is presently completing the steps leading to the construction of a 15 MW natural gas cogeneration station on Norampac“s Avot-Vallee plant site in France. Boralex said it will be able to integrate the new stations without any significant increases in its operating costs, due to its flexible infrastructure, high-quality human resources, and ultramodern remote-management control centre.