Alterra Power Announces Results for the Quarter Ended September 30, 2013

Alterra Power Announces Results for the Quarter Ended September 30, 2013


(under IFRS and all amounts in US dollars unless otherwise stated)



VANCOUVER, Nov. 12, 2013 /PRNewswire/ - Alterra Power Corp. (TSX: AXY) is
pleased to report its financial and operating results for the three and
nine months ended September 30, 2013. For further information on these
results please see Alterra's Condensed Consolidated Interim Financial
Statements and Management's Discussion and Analysis.



Alterra consolidates 100% of the HS Orka and Soda Lake operations and
accounts for its interests in the Toba Montrose, Dokie 1 and ABW Solar
(third quarter solar acquisition) facilities as equity investments.
Alterra's results are sometimes disclosed as Alterra's "net interest",
which means the results that Alterra would have reported if each of HS
Orka (66.6%), Toba Montrose (40%), Dokie 1 (51%), ABW Solar (10%) and
Soda Lake (100%) had been reported in accordance with Alterra's actual
share of ownership. Management believes that net interest reporting
provides the clearest view of the Company's performance.



Highlights for the current quarter include:



-- Increased revenue and EBITDA (net interest):Revenue (including
business interruption proceeds) was $30.0 million and EBITDA
was $18.3 million, up 3% from the comparative quarter,
primarily due to increased contractual revenue at HS Orka and
higher water flow at Toba Montrose.
-- Reliable power generation: Alterra's fleet of power projects
generated 360,391 MWh of clean power (net interest), achieving
89% of budgeted generation despite the Montrose hydro facility
being offline for most of the quarter. Generation would have
been 103% of budget had the Montrose plant not been offline.
Total generation from plants operated by Alterra was 669,344
MWh.
-- ABW Solar acquisition completed: Alterra acquired a 10%
interest in a 50 MW solar generation project in Ontario, Canada
(ABW Solar) for $7.1 million, and will manage the project.
-- Montrose facility back online:Penstock repairs at the Montrose
hydro facility were completed and the facility was brought back
into service on September 22, 2013. Several site improvements
including protective berms have also been completed and will
significantly lessen the likelihood of any future damage or
interruption.
-- Jimmie Creek project development:
o Construction timing: Alterra now plans construction for this 62 MW
run-of-river facility in 2014, and has executed a further limited
notice to proceed with SNC Lavalin in support of this schedule.
o PPA completed: The Jimmie Creek power purchase agreement ("PPA")
was finalized through an amendment completed subsequent to the
quarter. Under the contract, the project will sell 100% of its
power to BC Hydro for 40 years commencing in August 2016.
o Alterra to be 100% owner: Alterra completed an agreement to
purchase the 49% project stake currently owned by an affiliate of
General Electric Energy Financial Services. The transaction is
expected to close by December 2013.
-- Shannon wind project: Alterra entered into an exclusivity
agreement that provides for an option to purchase a 200 MW wind
generation development project in Clay County, Texas, USA.
-- Reykjanes Re-Injection Program:Alterra commenced drilling a new
large-diameter well in support of a field maintenance program.
The well was completed in November, with positive initial
indications of permeability.


John Carson, Alterra's CEO, said "With our operations back to full
strength and delivering positive results, we are now focused on making
2014 a strong year of growth for Alterra. Our plan is to place both
Jimmie Creek and Shannon Wind into construction in 2014, and I'm
confident that we have the resources, including people and access to
capital, to make that a reality."


Financial Results


The following table shows key financial information extracted from the
consolidated results.


(expressed in thousands of US dollars, except for generation)





For the
three months
ending
September
30, 2013

Toba Dokie Soda Exploration Net
HS Orka Montrose 1 Lake ABW and Head Interest Consolidated
(66.6%) (40%) (51%) (100%) (10%) Office Total Results

Generation 206,791 113,474 26,423 12,631 1,072 - 360,391 323,128
(MWh)

Total 8,821 $ 12,143 $ $ 817 $ 434 - 24,993 14,062
Revenue $ 2,778 $ $ $

Business
Interruption - 5,052 - - - - 5,052 -
Insurance
Proceeds

Gross Profit 2,171 9,387 390 (1,035) 298 - 11,211 2,225
(Loss)

EBITDA (a) 4,787 14,541 1,266 (430) 268 (2,179) 18,253 20,385





For the
three months
ending
September
30, 2012

Toba Dokie Soda Exploration Net
HS Orka Montrose 1 Lake ABW and Head Interest Consolidated
(66.6%) (40%) (51%) (100%) (10%) Office Total Results

Generation 198,406 154,208 34,085 12,308 - - 399,007 310,215
(MWh)

Total 8,338 $ 16,210 $ $ 806 $ - - 29,244 13,326
Revenue $ 3,890 $ $ $

Gross Profit 2,439 13,259 1,518 (1,473) - - 15,743 2,189
(Loss)

EBITDA (a) 4,077 14,092 2,429 (998) - (1,836) 17,764 19,808








Note (a) -Here and elsewhere, EBITDA is defined by Alterra as earnings before
interest, taxes, foreign exchange, depreciation and amortization, as
well as before deductions for change in fair value of bonds payable and
derivatives, foreign exchange gain (loss), write off of development
costs and other income (expense) except business interruption proceeds,
amortization of below market contracts, and value assigned to options
granted less share of income (loss) of equity accounted investees plus
the Company's interest in EBITDA of its equity accounted investees.
Alterra discloses EBITDA as it is a measure used by analysts and by
management to evaluate Alterra's performance. As EBITDA is a non-IFRS
measure, it may not be comparable to EBITDA calculated by others. In
addition, as EBITDA is not a substitute for net earnings, readers
should consider net earnings in evaluating Alterra's performance. For a
reconciliation of consolidated EBITDA to Alterra's consolidated
financial statements refer to the Company's Management's Discussion and
Analysis for the three and nine months ended September 30, 2013.


Consolidated Results


Revenue was up 6% ($14.1 million compared to $13.3 million) due to
increased generation and contractual sales at HS Orka. Gross profit
remained consistent at $2.2 million as the increase in revenue was
offset by increased maintenance drilling at HS Orka.



Net income improved $1.7 million to $16.4 million, largely as a result
of high water flows and insurance proceeds received at Toba Montrose,
which drove a $7.5 million increase in Alterra's share of equity
investments. Non-cash items offsetting this increase include:



-- A $2.3 million negative change in the fair value of bonds
payable and derivatives, related primarily to fluctuations in
forecasted aluminum prices.
-- A $2.9 million negative movement related to foreign exchange.
-- A $2.0 million negative change in write-offs of certain
development costs related primarily to the completion of joint
ventures in Chile and Peru.


Consolidated cash and cash equivalents at September 30 were $37.1
million ($39.2 million at December 31, 2012).


Net Interest Results


Alterra's net interest in revenue and EBITDA increased 3% and 3%
respectively primarily due to increased contractual revenue at HS Orka,
high water flow at Toba Montrose resulting in increased generation,
income from the Blue Lagoon hf due to increased visitor attendance and
the addition of ABW Solar. Offsets to these increases include reduced
generation at Dokie 1 due to low winds, and slight increases in general
and administrative expense related to non-recurring transaction fees
and office reductions for the Company's South American projects.


Iceland Operations (66.6% Interest)


The 100 MW Reykjanes plant generated 132,689 MWh of electricity (98% of
budget), and the 72 MW Svartsengi plant generated 74,102 MWh of
electricity (109% of budget), and continued to supply thermal energy
for district heating.


Toba Montrose Operations (40% Interest)


The Toba Montrose facility generated 113,474 MWh of electricity, or 74%
of forecasted generation. Although the Montrose facility was offline
for repairs during the majority of the quarter, the measured water flow
for purposes of business interruption insurance payments (attributed
generation) was 57,636 MWh, for a combined pro forma generation of
171,110, 112% of budget.



On December 13, 2012 a rockslide damaged a 300 meter section of the five
kilometer penstock (which supplies water from the intake to the power
generating plant) at the Montrose facility. The penstock repairs at the
Montrose hydro facility were completed during the third quarter and the
facility was brought back into service on September 22, 2013. Several
site improvements including protective berms were also completed and
will significantly lessen the likelihood of any future damage or
interruption. Business Interruption and property damage proceeds were
paid by the insurer during the quarter and eligible property costs and
sub-limits with respect to future payments for property damage are
being reviewed with the insurer.



New property insurance for the project was obtained in September 2013
with earth movement coverage capped at C$40.0 million. Toba Montrose
has agreed to defer distributions until a higher level of earth
movement coverage is re-established, which the Company expects to occur
by the second quarter of 2014 or earlier.


Dokie 1 Operations (51% Interest)


The 144 MW Dokie 1 wind farm generated 26,423 MWh of electricity for the
quarter, or 72% of budget. Revenue decreased against the comparative
quarter due to lower wind.


ABW Solar Operations (10% Interest)


On August 23 Alterra acquired a 10% interest in a 50 MW solar generation
project in Ontario (ABW Solar), which will be held in a general
partnership with an affiliate of GE Energy Financial Services ("GE
EFS") and managed by Alterra. The project was built by First Solar,
Inc. and achieved commercial operations during the second quarter of
2013. The project will sell 100% of its electricity to the Ontario
Power Authority under 20-year PPAs. The project generated 1,072 MWh for
the quarter (beginning August 23), representing 113% of budget.


Soda Lake Operations (100% Interest)


The 15 MW Soda Lake geothermal plant generated 12,631 MWh of electricity
for the current quarter, or 98% of budget. The plant completed its
annual maintenance outage during the quarter as planned.


Expansion and Development Projects

Jimmie Creek hydro(formerly Upper Toba)


Alterra is currently finalizing plant design for the fully permitted 62
MW Jimmie Creek project and in July 2013 signed a limited notice to
proceed with SNC Lavalin who will provide further pre-construction
services. Alterra is now targeting construction to begin in the first
half of 2014.



On October 31 Alterra signed an agreement to purchase the 49% share of
the Jimmie Creek project currently owned by GE EFS, following which
Alterra will own 100% of the project. Alterra expects the transaction
to close by year-end.



In November 2013 Alterra completed an amendment to the project's PPA to
cover the Jimmie Creek project only, at a nameplate capacity of 62 MW
with projected annual firm energy of 114 GWh and an August 1, 2016
completion date for construction. Under the contract, the project will
sell 100% of its power to BC Hydro for 40 years. Alterra will examine
the possibility of constructing the Upper Toba project at a later date
under a future call for power.


Dokie 2 wind farm expansion


Alterra holds a 51% interest in a planned expansion of the Dokie 1 wind
farm (Dokie 2) with projected additions to capacity of up to 156 MW.
During the quarter Alterra continued to collect data, conduct
engineering work and perform other studies to complete the assessment
of the project.


South American geothermal projects


In July 2013 Alterra completed a joint venture agreement with Energy
Development Corporation ("EDC") for the further development of the
Mariposa project in Chile and the Crucero, Loriscota, and Tutupaca
Norte projects in Peru on a joint basis. Under the terms of the joint
venture, EDC will be entitled to earn a 70% interest by funding the
next $58.3 million in project expenditures at Mariposa and $8.0 million
on the Peruvian projects. Subsequent project equity contributions and
economic sharing would be on a pro rata basis between the partners. EDC
is now the managing partner for the development of the Mariposa project
and the Peruvian projects. The projects are now recorded as equity
investments by Alterra.


Reykjanes Expansion


Alterra has commenced a reinjection program at the Reykjanes field, and
will refine the timeline for the Reykjanes expansion pending results
from the program. The key matters remaining prior to construction are
conclusion of a PPA, completion of project financing and confirmation
of resource field.


Other development projects


Alterra continues to advance other early stage geothermal projects in
Italy and Peru, including exploration field work, data assessment and
continued community consultations. Alterra also continues to advance
its British Columbia hydro projects in 2013 through collection of
hydrology data for the Bute Inlet project and other early stage run of
river and pumped storage hydro projects. In Iceland, Alterra began an
environmental assessment on the Bulandsvirkjun hydroelectric project.





________________________________________________________________________________________________________________________________________
| |
| |
| -- Alterra Power will host a conference call to discuss financial and operating results on Wednesday, November 13, 2013 at 11:30 am|
| ET (8:30 am PT). |
| -- North American participants dial 1-888-390-0546 and International participants dial 1-416-764-8688; the conference ID is |
| 18533630. |
| -- The call will also be broadcast live on the Internet at |
| http://www.newswire.ca/en/webcast/detail/1246789/1373689.|
| -- The call will be available for replay for one week after the call by dialing 1-416-764-8677 and entering replay PIN 533630. |
|________________________________________________________________________________________________________________________________________|




Cautionary Note regarding Forward-Looking Statements and Information


Certain statements included in this news release may contain information
that is forward-looking within the meaning of certain securities laws,
including information and statements regarding prospective results of
operations, financial position, cash flows or growth potential. These
statements are based on factors or assumptions that were applied in
drawing a conclusion or making a forecast or projection, including
assumptions based on historical trends, current conditions and expected
future developments. Since forward-looking statements relate to future
events and conditions, by their very nature they require making
assumptions and involve inherent risks and uncertainties. Alterra
cautions that although it is believed that the assumptions are
reasonable in the circumstances, these risks and uncertainties give
rise to the possibility that actual results may differ materially from
the expectations set out in the forward-looking statements. Material
risk factors include those set out in the management's discussion and
analysis section of Alterra's most recent annual report and quarterly
report, and in Alterra's Annual Information Form. Given these risks,
undue reliance should not be placed on these forward-looking
statements, which apply only as of their dates. Other than as
specifically required by law, Alterra undertakes no obligation to
update any forward-looking statements or information to reflect new
information, subsequent or otherwise.


SOURCE Alterra Power Corp.

Alterra Power Corp.

CONTACT: Peter Lekich, Corporate Communications
Alterra Power Corp.
Phone: 604.235.6719
Email: info@alterrapower.ca


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