Business
Capital Power reports fourth quarter 2009 results
Capital Power reports fourth quarter 2009 results
About this update from Capital Power Corporation
[{"type":"text","content":"\n\n\n\nEDMONTON, Mar. 9, 2010 (Canada NewsWire Group) -- /CNW/ -- Capital Power Corporation (Capital Power, or the Company) (TSX: CPX) released today its financial results for the three and six month periods ended December 31, 2009. Reported net income for the fourth quarter 2009 was $7 million or $0.33 per share. For the six months since completion of the Company's Initial Public Offering, net income was $21 million or $0.97 per share. After adjusting for one-time items and fair value adjustments, normalized earnings per share in the fourth quarter 2009 was $0.18 per share and $0.60 per share for the six months ended December 31, 2009.\"Fourth quarter operating performance was in line with our expectations,\" said Brian Vaasjo, President and Chief Executive Officer of Capital Power. \"With the planned outage at our Genesee 1 plant in the quarter, average plant availability was 92 per cent in the quarter and 94 per cent for the six months. Alberta power prices were significantly lower in the second half of 2009 compared to the same period in 2008. However, a significant portion of the company's merchant production in the latter half of 2009 was hedged at an average price approximately 16 per cent higher than the average spot price for electricity.\"\"We continue to experience weak power prices in Alberta that are expected to remain low in 2010, mainly due to low natural gas prices,\" continued Vaasjo. \"However, substantially all of the company's merchant production in 2010 has been hedged at an average price above the current forward curve, thereby minimizing the company's exposure to depressed power prices. The long-term fundamentals of the Alberta power market remain positive and Alberta power prices are expected to be amongst the first to recover in North America based on the favourable supply/demand balance.\"\"In December 2009, we completed the commissioning of the third and final natural gas turbine at the Clover Bar Energy Centre, well ahead of schedule and at a cost approximately $21 million lower than previous estimates, with the facility now at full capacity to provide 243 megawatts of peaking power to the Alberta market,\" added Vaasjo. \"In addition, the construction of the Keephills 3 plant is on track for completion in the second quarter of 2011, providing us with further significant leverage to recovering Albert...