Click here to close now.


News Feed Item

Capital Power Reports First Quarter 2014 Results

EDMONTON, ALBERTA -- (Marketwired) -- 04/25/14 -- Capital Power Corporation (Capital Power, or the Company) (TSX: CPX) today released its financial results for the quarter ended March 31, 2014.

Funds from operations were $90 million in the first quarter of 2014, down 13%, on a comparable basis, from $103 million in the first quarter of 2013. Net income attributable to shareholders in the first quarter of 2014 was $32 million, or $0.33 per share, compared with $34 million, or $0.44 per share, in the comparable period of 2013. Normalized earnings attributable to common shareholders in the first quarter of 2014, after adjusting for one-time items and fair value adjustments, were $25 million or $0.31 per share compared with $25 million or $0.36 per share in the first quarter of 2013.

"Financial results in the first quarter were modestly below our expectations primarily due to a 10-day unplanned outage at Genesee 1," said Brian Vaasjo, President and CEO of Capital Power. "Despite the unplanned outage at Genesee 1, the rest of the fleet performed well with an overall average plant availability of 94% in the first quarter. With Alberta power prices generally in-line with our forecast for the remaining nine months of 2014, we remain on track to achieve our funds from operations financial target for this year."

"We have finalized joint arrangement agreements with ENMAX Corporation to advance the development, construction, and operation of the Genesee 4 and 5 facility," said Mr. Vaasjo. "Discussions relating to commercial agreements are on-going with the expectation that these agreements will be finalized when the project receives its full notice to proceed. Genesee 4 and 5 is scheduled for completion later this decade when additional generation in the province is required to meet growing demand and replace generation from the retirement of coal-fired units."

"We are pleased to welcome our new joint venture partners, Westmoreland Coal Company (Westmoreland) and Altius Minerals Corporation, on the Genesee coal mine as part of Westmoreland's recent acquisition of Prairie Mines & Minerals Royalty Ltd.'s coal operations. Westmoreland has strong experience in mine-mouth operations and is recognized as the lowest-cost fuel supplier to some of the cleanest, most economical and highly utilized coal-fired utility owned power plants in North America."

Operational and Financial Highlights(1)                   Three months ended
(unaudited)                                                         March 31
(millions of dollars except per share and
 operational amounts)                                     2014          2013
Electricity generation (excluding acquired
 Sundance PPA) (GWh)                                     3,241         4,142
Generation plant availability (excluding acquired
 Sundance PPA) (%)                                         94%           94%
Revenues                                           $       308   $       365
Adjusted EBITDA (2)                                $       113   $       135
Net income                                         $        38   $        48
Net income attributable to shareholders of the
 Company                                           $        32   $        34
Normalized earnings attributable to common
 shareholders (2)                                  $        25   $        25
Basic earnings per share                           $      0.33   $      0.44
Diluted earnings per share                         $      0.33   $      0.44
Normalized earnings per share (2)                  $      0.31   $      0.36
Funds from operations (2)                          $        90   $       103
Purchase of property, plant and equipment and
 other assets                                      $        75   $       293
Dividends per common share, declared               $     0.315   $     0.315
(1) The operational and financial highlights in this press release should be
    read in conjunction with Management's Discussion and Analysis and the
    audited Consolidated Financial Statements for the three months ended
    March 31, 2014.
(2) Earnings before finance expense, income tax expense, depreciation and
    amortization, impairments, foreign exchange losses, and gains on
    disposals (adjusted EBITDA), normalized earnings attributable to common
    shareholders, normalized earnings per share, and funds from operations
    are non-GAAP financial measures and do not have standardized meanings
    under GAAP and are, therefore, unlikely to be comparable to similar
    measures used by other enterprises. See Non-GAAP Financial Measures.

Significant Event

Construction of K2 Wind Power Project commences

On March 24, 2014, construction of the K2 Wind Power Project (K2 Wind) commenced following the successful completion of an $850 million financing in the form of a construction loan that will convert to long-term project debt once K2 Wind starts commercial operations. K2 Wind is a 270 megawatt (MW) wind power project located in Goderich, Ontario that is under joint development by Samsung Renewable Energy, Inc., Pattern Energy Group LP and Capital Power with operations expected to commence in the second half of 2015. The total estimated project cost has been revised upward to $930 million from the previous upper end of range of $900 million primarily due to foreign exchange changes on U.S. contract deliverables. Capital Power's share is $310 million. As a higher portion of the project is expected to be financed with project debt than originally forecast, Capital Power expects higher equity returns on the project.

Subsequent Events

Genesee 4 and 5

On April 24, 2014, Capital Power and ENMAX Corporation (ENMAX) executed a purchase and sale agreement in support of a joint arrangement agreement to jointly develop, construct, and operate the Genesee 4 and 5 power project. The joint arrangement agreement will provide provisions for, among other things, an agreement for ENMAX to purchase approximately 225 MW from Capital Power for eight years. The joint arrangement agreement closing is expected to occur in May 2014.

Genesee coal mine

Capital Power is a party to various agreements with Prairie Mines & Minerals Royalty Ltd. (PMRL) in relation to the operations of the Genesee coal mine (Genesee Coal Mine Agreements). Pursuant to the Genesee Coal Mine Agreements, PMRL operates the Genesee Coal Mine. In connection with the acquisition by Westmoreland Coal Company (Westmoreland) of PMRL and the acquisition by Altius Minerals Corporation (Altius) of the royalty assets of PMRL, the Genesee Coal Mine Agreements and certain related agreements have, amongst other things, been amended to: (a) confirm the acquisitions by Westmoreland and Altius; and (b) provide for certain amendments to the Genesee Coal Mine Agreements.

Analyst Conference Call and Webcast

Capital Power will be hosting a conference call and live webcast with analysts on April 28, 2014 at 11:00 AM (ET) to discuss the first quarter results. The conference call dial-in numbers are:

(604) 681-8564 (Vancouver)

(403) 532-5601 (Calgary)

(416) 623-0333 (Toronto)

(514) 687-4017 (Montreal)

(855) 353-9183 (toll-free from Canada and USA)

Participant access code for the call: 21543#

A replay of the conference call will be available following the call at: (855) 201-2300 (toll-free) and entering conference reference number 1153040# followed by participant code 21543#. The replay will be available until midnight on July 28, 2014.

Interested parties may also access the live webcast on the Company's website at with an archive of the webcast available following the conference call.

Non-GAAP Financial Measures

The Company uses (i) adjusted EBITDA, (ii) funds from operations, (iii) normalized earnings attributable to common shareholders, and (iv) normalized earnings per share as financial performance measures. These terms are not defined financial measures according to GAAP and do not have standardized meanings prescribed by GAAP, and are, therefore, unlikely to be comparable to similar measures used by other enterprises. These measures should not be considered alternatives to gross income, net income, net income attributable of shareholders of the Company, net cash flows from operating activities or other measures of financial performance calculated in accordance with GAAP. Rather, these measures are provided to complement GAAP measures in the analysis of the Company's results of operations from management's perspective. Reconciliations of adjusted EBITDA to gross income, operating income and net income, funds from operations to net cash flows from operating activities and normalized earnings attributable to common shareholders to net income attributable to shareholders of the Company are contained in the Company's Management's Discussion and Analysis dated April 24, 2014 for the three months ended March 31, 2014 which is available under the Company's profile on SEDAR at

Forward-looking Information

Forward-looking information or statements included in this press release are provided to inform the Company's shareholders and potential investors about management's assessment of Capital Power's future plans and operations. This information may not be appropriate for other purposes. The forward-looking information in this press release is generally identified by words such as will, anticipate, believe, plan, intend, target, and expect or similar words that suggest future outcomes.

Material forward-looking information in this press release includes information with respect to expectations regarding: (i) future cash flows, and (ii) completion of capital projects.

These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements relate to: (i) electricity and other energy prices, (ii) performance, (iii) business prospects and opportunities including expected growth and capital projects, (iv) status and impact of policy, legislation and regulation, and (v) effective tax rates.

Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from the Company's expectations. Such material risks and uncertainties are: (i) changes in electricity prices in markets in which the Company operates, (ii) changes in energy commodity market prices and use of derivatives, (iii) regulatory and political environments including changes to environmental, financial reporting and tax legislation, (iv) power plant availability and performance including maintenance expenditures, (v) ability to fund current and future capital and working capital needs, (vi) acquisitions and developments including timing and costs of regulatory approvals and construction, (vii) changes in market prices and availability of fuel, and (viii) changes in general economic and competitive conditions. See Risks and Risk Management in the Company's December 31, 2013 annual Management's Discussion and Analysis for further discussion of these and other risks.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The web app is agile. The REST API is agile. The testing and planning are agile. But alas, data infrastructures certainly are not. Once an application matures, changing the shape or indexing scheme of data often forces at best a top down planning exercise and at worst includes schema changes that force downtime. The time has come for a new approach that fundamentally advances the agility of distributed data infrastructures. Come learn about a new solution to the problems faced by software organ...
Achim Weiss is Chief Executive Officer and co-founder of ProfitBricks. In 1995, he broke off his studies to co-found the web hosting company "Schlund+Partner." The company "Schlund+Partner" later became the 1&1 web hosting product line. From 1995 to 2008, he was the technical director for several important projects: the largest web hosting platform in the world, the second largest DSL platform, a video on-demand delivery network, the largest eMail backend in Europe, and a universal billing syste...
Electric power utilities face relentless pressure on their financial performance, and reducing distribution grid losses is one of the last untapped opportunities to meet their business goals. Combining IoT-enabled sensors and cloud-based data analytics, utilities now are able to find, quantify and reduce losses faster – and with a smaller IT footprint. Solutions exist using Internet-enabled sensors deployed temporarily at strategic locations within the distribution grid to measure actual line lo...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. Migration to cloud shifts computing resources from your data center, which can yield significant advantages provided that the cloud vendor an offer enterprise-grade quality for your application.
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, will explore the current state of IoT connectivity and review key trends an...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi's VP Business Development and Engineering, will explore the IoT cloud-based platform technologies driv...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Chris Van Tuin, Chief Technologist for the Western US at Red Hat, has over 20 years of experience in IT and Software. Since joining Red Hat in 2005, he has been architecting solutions for strategic customers and partners with a focus on emerging technologies including IaaS, PaaS, and DevOps. He started his career at Intel in IT and Managed Hosting followed by leadership roles in services and sales engineering at Loudcloud and Linux startups.
You have your devices and your data, but what about the rest of your Internet of Things story? Two popular classes of technologies that nicely handle the Big Data analytics for Internet of Things are Apache Hadoop and NoSQL. Hadoop is designed for parallelizing analytical work across many servers and is ideal for the massive data volumes you create with IoT devices. NoSQL databases such as Apache HBase are ideal for storing and retrieving IoT data as “time series data.”
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ability. Many are unable to effectively engage and inspire, creating forward momentum in the direction of desired change. Renowned for its approach to leadership and emphasis on their people, organizations increasingly look to our military for insight into these challenges.
The IoT market is on track to hit $7.1 trillion in 2020. The reality is that only a handful of companies are ready for this massive demand. There are a lot of barriers, paint points, traps, and hidden roadblocks. How can we deal with these issues and challenges? The paradigm has changed. Old-style ad-hoc trial-and-error ways will certainly lead you to the dead end. What is mandatory is an overarching and adaptive approach to effectively handle the rapid changes and exponential growth.