Transeastern Power Trust Reports 2016 Results
TORONTO, ONTARIO – May 3, 2017: Transeastern Power Trust (“Transeastern” or the “Trust”) (TSX-V: TEP.UN; TEP.DB) has released its audited financial results for the year ended December 31, 2016. All amounts in this release are expressed in Canadian dollars unless otherwise indicated.
- Completed the acquisition of a 17.6 MW operational wind project located in Romania that generates approximately 43,800 MWh of electricity annually representing a 114% increase in the annual production capacity of the Trust.
- Produced a total of 44,560 MWh of energy for the year ended December 31, 2016 generating revenue of approximately $8.7 million, an increase of 63% over 2015 with $2.1 million from the sale of electricity and $6.6 million earned from restricted and tradable green certificates.
- Earned operating margin1 of $5.9 million in 2016, an increase of over 306% over 2015 operating margin of $1.4 million.
- Subsequent to December 31, 2016, the Trust closed a $3.8 million secured debt facility on January 22, 2017 and repaid the existing secured indebtedness early.
- In the first quarter of 2017, the Trust has completed a cost rationalization exercise across its Romanian operations that management believes will result in a reduction of annual costs of approximately $300,000 and improved operating performance of the Trust’s hydroelectric assets.
J. Colter Eadie, Chief Executive Officer of Transeastern commented “The wind acquisition completed in September 2016 has significantly increased our production capacity and the results reflect this increased capacity as well as a full year of production from our solar assets. We look forward to the continuing development of our diversified portfolio of power generation in the coming year. The Trust will continue with its strategy of growing the production portfolio by pursuing acquisitions of operating assets that are accretive to the Trust and its unitholders.”
For further information please contact:
Chief Financial Officer
+1 (416) 625-5064
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’s discussion & analysis dated May 3, 2017, 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 “Review of Operations” in the Trust’s Management’s Discussion and Analysis for the year ended December 31, 2016 for further details.