Transeastern Power Trust Reports Second Quarter 2016 Results
TORONTO, ONTARIO--(Marketwired - Aug. 29, 2016) - Transeastern Power Trust ("Transeastern" or the "Trust") (TSX VENTURE:TEP.UN)(TSX VENTURE:TEP.DB) has released its unaudited financial results for the quarter ended June 30, 2016. All amounts in this release are expressed in Canadian dollars unless otherwise indicated.
Q2 2016 Highlights
- Produced 10,042 MWh of energy (3,002 MWh from hydro and 7,040 MWh from solar), an increase of 2.7% over Q2 2015
- Earned net income of $1,069,218 with basic and diluted net earnings per unit of $0.04
- Generated revenues of $2,355,307, an increase of 366% over Q2 2015 revenues of $505,072 and earned operating margin(1) of $1,622,682, an increase of 844% over Q2 2015 operating margin of $171,813
J. Colter Eadie, Chief Executive Officer of Transeastern commented, "We have hit a huge milestone with the increases in energy production and operating margins driving our first quarter of net earnings since the inception of the Trust. We remain focused on our vision of growing, diversifying, and de-risking our business to deliver steady returns to our Unitholders. While we have experienced delays in closing our previously announced financings and acquisition, we have significantly advanced towards closing and are targeting to close the transactions in the third quarter of 2016."
The Trust, through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, has been formed to acquire interests in renewable energy assets in Romania, other countries in Europe and abroad that can provide stable cash flow to the Trust and a suitable risk-adjusted return on investment. The Trust seeks to provide investors with long-term, stable distributions, while preserving the capital value of its investment portfolio through investment, principally in a range of operational assets, which generate electricity from renewable energy sources, with a particular focus on solar and hydro power. The Trust intends to qualify as a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any "non-portfolio property" (as defined in the Tax Act). All material information about the Trust may be found under Transeastern's issuer profile at www.sedar.com.
Forward-Looking Statements Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "anticipates", "plans", "proposes", "estimates", "intends", "expects", "believes", "may" and "will". There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others: risks related to foreign operations (including various political, economic and other risks and uncertainties), the interpretation and implementation of the energy law, expropriation of property rights, political instability and bureaucracy, limited operating history, lack of profitability, high inflation rates, failure to obtain bank financing, fluctuations in currency exchange rates, competition from other businesses, reliance on various factors (including local labour, importation of machinery and other key items and business relationships), risks related to seasonality (including adverse weather conditions, shifting weather patterns, and global warming), a shift in energy trends and demands, a shift in energy generation in the European Union, vulnerability to fluctuations in the world market, the lack of availability of qualified management personnel and stock market volatility. Details of the risk factors relating to Transeastern and its business are discussed under the heading "Risks and Uncertainties" in Transeastern's annual management discussion and analysis dated April 29, 2016, a copy of which is available on Transeastern's SEDAR profile at www.sedar.com. Most of these factors are outside the control of the Trust. Investors are cautioned not to put undue reliance on forward-looking information. These statements speak only as of the date of this press release. Except as otherwise required by applicable securities statutes or regulation, Transeastern expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise. Neither the 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.
(1) Operating margin is a non-GAAP measure calculated by deducting cost of sales from revenues. Refer to "Non-GAAP Measure" in the Trust's Management's Discussion and Analysis for the three and six month periods ended June 30, 2016 for further details.