STOCK SYMBOL: GLH.UN/TSX
GATINEAU, QC, July 28 /CNW Telbec/ - Great Lakes Hydro Income Fund
(GLH.UN: TSX) today reported its financial results for the second quarter
ended June 30, 2006. In addition to strong operational results and continued
growth in revenues and income, the Fund also announced that the Board of
Trustees approved an increase in distributions payable September 29, 2006.
<<
- Power generation in the second quarter exceeded the long-term average
in three of the Fund's four regions. Total power generation of
1,120 GWh was 13 percent higher than the same quarter in 2005.
- Driven by strong hydrology conditions throughout the Fund's
portfolio, revenue from operations totalled $48.7 million in the
second quarter of 2006 compared with $43.3 million a year earlier.
For the six-month period, revenue from operations increased to
$97.5 million from $83.8 million in 2005.
- Income before non-cash and special items totalled $25.7 million
compared with $22.9 million in the second quarter of 2005. For the
six-month period, income before non-cash and special items increased
to $51.2 million from $41.7 million a year earlier.
- Monthly distributions by the Fund will increase from 10.33 cents to
10.42 cents per unit, beginning with the distribution payable
September 29, 2006. This reflects the increase in income before
non-cash items from the Carmichael Falls acquisition that closed in
July 2006. On an annual basis, distributions will increase from $1.24
to $1.25 per unit.
"The strength of Great Lakes Hydro Income Fund lies in our ability to
deliver a stable, reliable and consistent return on investment in addition to
enhancing the value of the portfolio," said Richard Legault, President and
Chief Executive Officer. "By capitalizing on strong hydrology conditions,
maintaining strict control over our fixed-cost base and adding to our asset
base through the acquisition of Carmichael Falls, we are able to pass on this
success to our unitholders in the form of an increase in distributions."
2006 Financial and Operating Highlights
-------------------------------------------------------------------------
Unaudited Three months Six months
ended June 30 ended June 30
CDN $ millions, except
where noted 2006 2005 2006 2005
-------------------------------------------------------------------------
Revenues $ 48.7 $ 43.3 $ 97.5 $ 83.8
Income before non-cash
and special items 25.7 22.9 51.2 41.7
Distribution 14.9 14.6 29.9 29.3
Per unit
Income before non-cash
and special items 0.53 0.47 1.06 0.86
Distribution 0.31 0.30 0.62 0.61
Power generated (GWh) 1,120 989 2,260 1,911
Average price (cents/KWh) 4.3 4.4 4.3 4.4
-------------------------------------------------------------------------
DISTRIBUTIONS
The Fund will increase monthly distributions to unitholders from
10.33 cents per unit to 10.42 cents per unit, effective August 2006. This will
result in a total annual distribution in 2006 to unitholders of $60.0 million
compared to $58.7 million in 2005. Distributions are payable September 29,
2006 to unitholders of record as at August 31, 2006.
The schedule below sets out cash distribution history for the last six
months:
RECORD DATE PAYMENT DATE DISTRIBUTION PER UNIT
-------------------------------------------------------------------------
June 30, 2006 July 31, 2006 10.33 cents
May 31, 2006 June 30, 2006 10.33 cents
April 28, 2006 May 31, 2006 10.33 cents
March 31, 2006 April 28, 2006 10.33 cents
February 28, 2006 March 31, 2006 10.33 cents
January 31, 2006 February 28, 2006 10.33 cents
>>
Forward-Looking Statements
This new release may contain forward-looking statements concerning the
Great Lakes Hydro Income Fund ("Fund") business and operations. Forward
looking statements can be identified by the use of words, such as "believe",
"well positioned", "long-term", "grow", "expand", "enhance" or variations of
such words and phrases or state that certain actions, events or results "will"
be taken, occur or be achieved. Forward looking statements involve
assumptions, known and unknown risks, uncertainties and other factors which
may cause the actual results or performance to be materially different from
any future results or performance expressed or implied by the forward
statements. More details relating to risk factors can be found in the Fund's
annual information form in the section entitled Risk Factors.
Examples of such statements include, but are not limited to factors
relating to production and the business, financial position, operations and
prospects for the Fund. They include (1) the Fund's level of generation; (2)
the Fund's cost of production; (3) interest rates as they bear on the Fund's
indebtedness; (4) planned capital expenditures; (5) the impact of changes in
the Canadian dollar - U.S. dollar on the Fund's costs and results of
operations; (6) the negotiation of collective agreements with its unionized
employees; (7) business and economic conditions; (8) the legislation governing
air emissions, discharges into water, waste, hazardous materials and workers'
health and safety as well as the impact of future legislation and regulations
on expenses, capital expenditures and restrictions on operations; (9)
regulatory investigations, claims, lawsuits and other proceedings; and (10)
reliance on the guaranteed price for electricity by Brookfield Power Inc.
Actual results and developments are likely to differ, and may differ
materially, from those expressed or implied in the forward-looking statements
contained herein, and as a such, you are cautioned not to place undue reliance
on these forward-looking statements.
These forward-looking statements represent our views as of the date of
this news release. While the Fund anticipates that subsequent events and
developments may cause the Fund's views to change, the Fund disclaims any
obligation to update these forward-looking statements. These forward-looking
statements should not be relied upon as representing the Fund's views as of
any date subsequent to the date of this news release.
Q2 CONFERENCE CALL
A conference call for investors and media to review the second quarter
results for 2006 will be held on July 31, 2006 at 10:00 a.m. (EST). To
participate in the conference call, please dial 416-644-3414 or 1-800-796-7558
toll free in North America, at 9:50 a.m. (ET). For those unable to participate
in the conference call, a taped rebroadcast will also be available until
midnight August 2, 2006. To access this rebroadcast, please call
1-877-289-8525 toll free in North America, and enter the passcode
21195034(pound key).
ABOUT GREAT LAKES HYDRO INCOME FUND
Great Lakes Hydro Income Fund is a premier Canadian income fund and one
of the largest power income funds in North America with 1,015 megawatts of
power generating capacity and an average annual production of 3,874 gigawatt
hours.
Great Lakes Hydro Income Fund produces electricity exclusively from
environmentally friendly hydroelectric resources. The Fund owns, operates and
manages 26 high quality hydroelectric generating stations located on eight
river systems in four distinct geographic regions across North America:
Quebec, Ontario, British Columbia and New England.
Brookfield Power, which comprises the majority of the power operations of
Brookfield Asset Management, owns 50.1% of the Fund's outstanding units. Great
Lakes Hydro Income Fund units are traded on the Toronto Stock Exchange under
the symbol GLH.UN.
%SEDAR: 00013106EF
