Nevada Geothermal Power Reports Results for the Three Months Ended September 30, 2012
VANCOUVER, Nov. 28, 2012 /PRNewswire/ – Nevada Geothermal Power Inc. (“NGP” or “the Company”) (TSXV: NGP) today announced results for the three months ended September 30, 2012.
The Condensed Consolidated Interim Financial Statements and
Management’s Discussion and Analysis (MD&A) are available at www.sedar.com and on the Company’s website at http://www.nevadageothermal.com.
For the three months ended
(millions of US $ unless September 30, September 30, Variance %
stated otherwise) 2012 2011
Net profit (loss) from $ 0.0 $ (1.5) $ 1.5 100%
continuing operations
Results of discontinued
operations
Operating profit 2.5 2.5 - -
Finance costs (3.9) (4.9) 1.0 20%
Net loss: operations (1.4) (2.3) 0.9 39%
being disposed of
Effect of services to 0.4 0.2 0.2 100%
operations being
disposed of
Total loss from (1.0) (2.2) 1.2 55%
discontinued operations
Total net loss (0.9) (3.7) 2.8 76%
Net loss per share (basic (0.01) (0.03) 0.02 67%
and diluted) ($)
Cash generated from 2.9 2.6 0.3 12%
operating activities
As at As at Variance %
September 30, June 30,
2012 2012
Cash & cash equivalents $ 1.7 $ 2.1 $ (0.4) (19%)
Total assets 86.0 84.8 1.2 1%
Total liabilities 161.7 159.7 (2.0) (1%)
NGP is a geothermal energy company, focused on developing and generating
clean, sustainable electrical power from geothermal resources. The
Company developed and constructed the Faulkner 1 geothermal power
plant, at Blue Mountain, which it currently operates. In addition, the
Company holds leases on other properties in various stages of
development: two in Nevada, one in California’s Imperial Valley and a
50% interest in a joint venture development with Ormat Nevada Inc.
(“Ormat”) at the Crump Geyser property in Oregon.
The Company is continuing work with the mezzanine lender on the Blue
Mountain project, EIG Global Energy Partners (“EIG”), to transfer NGP’s
ownership interest in the Blue Mountain project to EIG. This follows
earlier breaches of the loan terms of the EIG loan. The transfer will
result in a reduction of assets of approximately $80.3 million, and a
reduction in liabilities of approximately $160.7 million (at September
30, 2012 values). NGP will continue as operator of the plant for a
period of time to ensure a smooth transition. NGP and EIG are
currently concluding negotiations. The remaining business will consist
of the Company’s exploration stage properties in Nevada, California and
Oregon.
The Company recorded a profit from continuing operations of $42,326 for
the quarter ended September 30, 2012. This was the result of cost
reductions, in particular a reduction in staff costs and resource
property expenses, and a gain on $1,000,000 recorded in respect of the
earlier sale of 50% of the Crump Geyser project. On August 10, 2012,
the Company and Ormat reached an agreement to extend the time period in
which Ormat is required to complete the initial development spending of
$15 million to maintain their interest in the Crump Geyser project to
June 30, 2014. In return the total cash instalments payable under the
agreement were increased from $2.5 million to $3.0 million. A payment
of $500,000 was received during August 2012, and a further guaranteed
payment of $500,000 was received during November 2012. The final
payment of $1.7 million is due on June 30, 2014. Ormat has the right to
early termination of the agreement, in which case the $1.7 million is
no longer payable and 100% of the project reverts to NGP.
Cash and cash equivalents in continuing operations amounted to $1.7
million as at September 30, 2012, which excludes the $500,000 received
in November 2012.
Depreciation of the Blue Mountain power plant assets ceased upon
classification of the assets as held for sale. This enabled the
operations being disposed of to record an operating profit of $2.5
million, despite a difficult operating quarter. The Company continues
to operate the Blue Mountain power plant, and will continue to earn
some fees for a period not to exceed 12 months from the date ownership
is transferred to EIG.
Management continues to pursue various strategic options and the
advancement of the Company’s other projects. Management also expects
that the contemplated Blue Mountain transfer will improve the financial
condition of the continuing operations and make it easier for the
Company to advance its plans.
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. is an experienced renewable energy producer
focusing on the development of CLEAN electrical power from high
temperature geothermal resources in the United States. NGP currently
owns a 100% leasehold interest in several properties in Nevada and
California, and a 50% interest in Crump Geyser, in Oregon. These properties are at different levels of exploration
and development.
This Press Release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
We have tried, whenever possible, to identify these forward-looking
statements using words such as “anticipates,” “believes,” “estimates,”
“expects,” “plans,” “intends,” “potential” and similar expressions.
These statements reflect our current belief and are based upon
currently available information. Accordingly, such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which could cause the Company’s actual results, performance or
achievements to differ materially from those expressed in or implied by
such statements. We undertake no obligation to update or advise in the
event of any change, addition, or alteration to the information catered
in this Press Release including such forward-looking statements.
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.
Brian D. Fairbank, P. Eng.
President & CEO
Nevada Geothermal Power Inc.
http://www.nevadageothermal.com
Telephone: 604-688-1553
Toll Free: 866-688-0808
Investor Inquiries:
Telephone: 604-688-1553
Toll Free: 866-688-0808
Email: info@nevadageothermal.com
SOURCE Nevada Geothermal Power Inc.
