Business
EPCOR Power L.P. reports third quarter results
EPCOR Power L.P. reports third quarter results
About this update from Capital Power Corporation
[{"type":"text","content":"\n\n\n\nOct. 26, 2009 (Canada NewsWire Group) -- EDMONTON, Oct. 26 /CNW/ -- (TSX: EP.UN) - EPCOR Power Services Ltd., the general partner of EPCOR Power L.P. (the Partnership), today released the Partnership's quarterly results for the period ended September 30, 2009.Third quarter revenue was $155.5 million, up 16.5 per cent from the year earlier level. Gross margin from the Partnership's plants, before adjustments for fair value changes, totaled $53.4 million, a 5.8 per cent reduction from the 2008 period. Cash provided by operating activities from continuing operations excluding working capital changes was $37.3 million in the quarter, consistent with expectations, compared with $41.4 million for the same period last year. This resulted in a third quarter, 2009 payout ratio of 71 per cent, which reflected maintenance capital expenditures of $3.9 million. The 71 per cent payout ratio is in-line with the Partnership's long-term payout ratio target of 75 per cent and represents a more conservative payout level when compared to the 89 per cent level in the corresponding period in 2008.\"Performance at our facilities was mixed in the third quarter of 2009,\" said Stuart Lee, President of the General Partner of EPCOR Power L.P. \"We benefited from the additional contribution from the Morris facility acquired in October 2008 and higher contributions from our Northwest U.S. plants and the Curtis Palmer facility compared to the third quarter of 2008. However, these increases were more than offset by lower power demand in our Ontario and North Carolina regions that negatively impacted the financial performance of our plants operating in those areas.\"\"The Partnership remains committed to the diversification of our portfolio, both in terms of geography and fuel type, as one of the cornerstones of our strategy,\" added Mr. Lee. \"As seen in this quarter, the diversity leads to mixed facility performance but stable consolidated results, supporting a consistent distribution policy.\"On October 13, 2009, the Partnership announced the launch of a Premium Distribution(TM) and Distribution Reinvestment Plans and a change in the cash distribution frequency to monthly from quarterly payments, effective October 2009.Also on October 13, 2009, the Partnership announced that a subsidiary will issue $100 million of 7.0% cumulative rate reset preferre...