Alterra Power Announces Results for the Quarter Ended September 30, 2017

Alterra Power (TSX:AXY) has announced its financial and operating results for the quarter ended September 30, 2017.
As quoted in the press release:

At September 30, 2017, Alterra consolidated 100% of the results of operations from its Icelandic subsidiary HS Orka, while Alterra’s interests in the Toba Montrose, Dokie 1, Shannon, Jimmie Creek, and Kokomo renewable power projects were accounted for as equity investments. In certain statements in this news release, Alterra’s results are disclosed as Alterra’s “net interest”, by which the Company means the operating results that the Company would have reported if each of HS Orka (66.6% through July 27, 2017 and 53.9% thereafter), Toba Montrose (40%), Dokie 1 (25.5%), Shannon (50% sponsor equity interest), Jimmie Creek (51%), and Kokomo (90% sponsor equity interest) were reported in the proportional ownership interests shown above. Management believes that net interest reporting, although a non-IFRS measure, provides the clearest view of Alterra’s performance. Refer to our MD&A for further information on non-IFRS measures. The Company also has disclosed information below regarding Adjusted EBITDA, another non-IFRS measure. Please refer to the Company’s definition of Adjusted EBITDA and further commentary thereto, which is incorporated in the Financial Results table below (note c).
Highlights for the quarter and subsequent period include:

• Improved generation: Quarterly generation was 95.5% of budget, up from 91.9% in the comparative quarter with strong performance from BC projects partially offsetting low winds at Shannon.
• Revenue and Adjusted EBITDA: Consolidated revenue increased by 19% to $16.8 million in 2017, and net interest revenue increased by 14% to $32.1 million predominantly due to a strengthening Icelandic krona, increased retail sales, an increase in aluminum prices during the quarter (25% of sales at HS Orka are linked to the price of aluminum), plus increased generation at Toba Montrose along with the inclusion of a full quarter of results from Jimmie Creek (comparative quarter only from August 1, 2016) and Kokomo. Consolidated Adjusted EBITDA and net interest Adjusted EBITDA increased by 13% and 9% respectively to $24.2 million and $20.8 million.
• Geothermal field improvement at Reykjanes: Recent field enhancement efforts (including wellhead cleaning and adjustments to turbine pressure and reservoir levels) have resulted in increased generation. The Company expects further increases in plant output in 2018 from the drilling of planned new wells and well work-overs. Generation at Reykjanes has been above budget all year except for a plant maintenance outage in September, which resulted in lower than forecast generation during the quarter. The plant is currently generating at 76 MW, the highest output level since second quarter 2016.
• Completion of Flat Top financing:
  
  • Project financing completed: On July 19, the Company closed a $287.2 million non-recourse credit facility for Flat Top supplied by Citi, Santander and the Royal Bank of Canada, consisting of a $216.7 million construction loan plus $70.5 millionin letters of credit. The loan facility is expected to be retired by a $221.1 million tax equity investment to be supplied by subsidiaries of Berkshire Hathaway Energy and Citi (subject to typical conditions precedent). Alterra’s total equity contribution for its 51% equity stake was $43.2 million.

Click here to read the full press release.