Business
Capital Power reports first quarter 2010 results
Capital Power reports first quarter 2010 results
About this update from Capital Power Corporation
[{"type":"text","content":"\n\n\n\n Apr. 30, 2010 (Canada NewsWire Group) -- Capital Power Corporation ("Capital Power", or the "Company") (TSX: CPX) today released its financial results for the three month period ended March 31, 2010. Normalized net income, after adjusting for one-time items and fair value adjustments, was $12 million or $0.55 per share in the first quarter of 2010.\n"The Company's performance in the first quarter of 2010 was ahead of management's expectations," said Brian Vaasjo, President and Chief Executive Officer of Capital Power Corporation. "Alberta spot power prices continued to remain low in the first quarter; however, the Company's strategy to sell forward a substantial portion of its Alberta power portfolio for the first quarter proved to be prudent as the captured price was approximately 63% higher than Alberta spot power prices."\n"Our recent announcements on long-term contract wins for our Quality Wind and Port Dover & Nanticoke projects, with BC Hydro and the Ontario Power Authority respectively, continue our successful execution of Capital Power's growth strategy," continued Vaasjo. "We will be investing nearly $800 million into wind projects, exceeding our 2010 target of committing at least $500 million to capital opportunities. Once construction of the wind projects is completed in late 2012 and early 2013, they will provide an additional 247 megawatts of generation capacity."\n\n\n >\n\n\nSale of interest in Battle River PSA\n\nOn January 15, 2010, the Company sold its remaining 15% interest in the Battle River Power Syndicate Agreement (PSA) for cash proceeds of $64 million resulting in a pre-tax gain of $28 million and $2 million of associated income taxes.\nThis sale was pursuant to the agreement entered into in June 2006 whereby the Company agreed to sell its Battle River Power Purchase Arrangement (PPA) and related interest in the Battle River PSA to ENMAX Corporation over a four-year period ending in January 2010. An initial interest of 55% was sold for cash proceeds of $343 million in June 2006, followed by the sale of 10% interests on each of January 1, 2007, January 15, 2008 and January 15, 2009 for cash proceeds of $59 million, $53 million and $47 million, respectively.\nThe after-tax gain was $26 million for the sale of the 15% interest in January 2...