Nevada Geothermal Power Reports Results for the three months and six months ended December 31, 2012
VANCOUVER, Feb. 28, 2013 /PRNewswire/ – Nevada Geothermal Power Inc. (“NGP” or “the Company”) (TSX.V: NGP) today announced results for the three months and six months ended
December 31, 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 December 31, December 31, Variance % stated otherwise) 2012 2011 Net loss from continuing $ (0.7) $ (1.3) $ 0.6 46% operations Results of discontinued operations Operating profit 3.6 1.2 2.4 200% Finance costs (3.9) (4.0) 0.1 3% Net loss: operations being (0.3) (2.8) 2.5 89% disposed of Effect of services to 0.3 0.2 0.1 50% operations being disposed of Total profit (loss) from 0.1 (2.6) 2.7 104% discontinued operations Total net loss (0.7) (3.9) 3.2 82% Net loss per share (basic and (0.01) (0.03) 0.02 67% diluted) ($) Cash generated from operating 3.2 1.4 1.8 129% activities As at As at Variance % December 31, June 30, 2012 2012 Cash & cash equivalents $ 2.0 $ 2.1 $ (0.1) (5%) Total assets 86.6 84.8 1.8 2% Total liabilities 163.1 159.7 3.4 (2%)
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.
On January 11, 2013, the Company entered into an Equity Transfer
Agreement (“ETA”) under which NGP will transfer its 100% interest in
the Blue Mountain power plant to its mezzanine lender, EIG Global
Energy Partners (“EIG”). NGP will continue as project operator of the
Blue Mountain power plant and will provide management and
administrative services during a cooperative transition period of up to
twelve months from the BM Holdco equity transfer date. EIG may also
exercise an option to purchase the operating company, Nevada Geothermal
Operating Company LLC (“Opco”), for a nominal amount plus the value of
the then existing working capital (capped at $350,000). The Agreement
is subject to certain conditions precedent.
The signing of the ETA represents a significant milestone for the
Company, since all assets and liabilities associated with the Blue
Mountain project will be derecognized upon closing of the agreement,
resulting in a substantial gain and freeing the Company to pursue its
other opportunities. The assets and associated liabilities of NGP I and
BM Holdco are classified as “held for sale” and the results as
“discontinued operations” in the financial statements for the three
months and six months ended December 31, 2012. The results of Opco, the
operator of the Blue Mountain power plant, are also included in
discontinued operations, along with other revenue generated from fees
charged to Blue Mountain for services.
The loss from continuing operations for the quarter ended December 31,
2012 amounted to $0.7 million, down from $1.3 million in the three
months ended December 31, 2011. The Company has cut costs and staff
numbers dramatically, although legal and consulting costs will remain
significant until the equity transfer agreement referenced above
closes. Cash and cash equivalents in continuing operations amounted to
$2.0 million as at December 31, 2012.
Depreciation of the Blue Mountain power plant assets ceased upon
classification of the assets as held for sale. Profit from
discontinued operations amounted to $0.1 million for the quarter,
compared to a loss of $2.6 million in the quarter ended December 31,
2011. NGP Blue Mountain I LLC, which owns the Blue Mountain power
plant, continues to make interest and capital payments on its loan from
John Hancock Life Insurance Company, which is 80% guaranteed by the
United States Department of Energy.
The Company expects that a reorganization plan, involving a one for five
reverse split of the stock and a name change to “Alternative Earth
Resources Inc”, will be implemented soon. Management continues to
pursue various strategic options and the advancement of the Company’s
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
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.
SOURCE Nevada Geothermal Power Inc.