Northland Power Income Fund Announces Strong 2007 Results
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Northland Power Income Fund (the “Fund”) (TSX: NPI.UN)(TSX: NPI.DB) reported its financial results today for the quarter and year ended December 31, 2007. Total distributable cash increased 63% in the fourth quarter compared to 2006 and 29% year over year. Total distributions paid to Unitholders for the year amounted to $1.08/unit representing a payout ratio of 75% of distributable cash.
FINANCIAL AND OPERATING HIGHLIGHTS —————————————————————————- 3 Months Ended Dec. 31 12 Months Ended Dec. 31 2007 2006 2007 2006 —————————————————————————- —————————————————————————- FINANCIAL (thousands, except per unit amounts) Sales $ 48,628 $ 47,936 $ 184,294 $ 164,791 Net income $ 31,293 $ 12,746 $ (27,190) $ 34,149 Standardized distributable cash $ 33,814 $ 18,090 $ 98,540 $ 70,415 Distributable cash $ 29,908 $ 18,403 $ 90,882 $ 70,515 Distributions declared to Unitholders $ 16,835 $ 17,921 $ 67,334 $ 64,937 Units Outstanding at Quarter End 62,352 62,333 62,352 62,333 Average Number of Units Outstanding — basic 62,352 62,293 62,345 59,311 Average Number of Units Outstanding — diluted 64,815 64,992 62,345 59,311 Per Unit — basic Standardized distributable cash $ 0.5423 $ 0.2904 $ 1.5806 $ 1.1872 Distributable cash $ 0.4797 $ 0.2954 $ 1.4577 $ 1.1889 Distributions declared to Unitholders $ 0.2700 $ 0.2875 $ 1.0800 $ 1.0800 —————————————————————————- —————————————————————————- OPERATIONS Electricity sales volume (megawatthours) 390,641 362,377 1,410,423 1,256,241 Steam sales volume (thousands of pounds) 366,453 361,176 1,358,312 1,317,541 Fuel consumption (thousands of gigajoules) 3,124 2,880 11,344 10,445 —————————————————————————- —————————————————————————-
Fourth Quarter Results
Sales of $48.6 million in the quarter increased by $0.7 million, while distributable cash of $29.9 million was higher by $11.5 million compared to the fourth quarter of 2006.
Electricity revenue under the Iroquois Falls power purchase agreement was up $1.9 million from the fourth quarter of the previous year because of an increase in off-peak electricity production due to the availability of affordable market gas; 2006 production was curtailed during lower-priced off-peak periods (nights, weekends and statutory holidays) due to reduced availability of contracted gas as a result of the supply default by Calpine Canada Natural Gas Partnership (“Calpine”). Non-contracted revenue earned from sales of electricity and operating reserves into the wholesale market increased $0.1 million from the previous year, consistent with higher sales volumes. Steam sales were in line with 2006, while sales of natural gas were down $1.0 million as more gas was used for electricity production, reducing the amount of unused capacity available under the plant’s gas transportation contract compared to the fourth quarter of 2006. The cost of sales was $0.6 million higher than last year as an increase in the cost of gas consumed, commensurate with higher production, was only partially offset by a decrease in the cost of gas resold.
Electricity revenue at the Kingston facility increased from the same period last year due largely to a 7% increase in production. Steam revenue was down due to lower demand and a decrease in the average selling price of steam. The contract price for steam is tied to Union Gas tariff rates in effect January 1st each year. Revenue from the resale of natural gas was down from the previous year due to a combination of lower volumes and lower gas prices. Cost of sales was up largely due to higher production.
Mont Miller’s production during the fourth quarter approximated the same period last year, in spite of unseasonably calm weather in December. The wind farm achieved a capacity factor of 38% during the quarter. The turbines achieved overall quarterly equipment reliability of 92% which was slightly below expectations as Vestas replaced three gearboxes and one generator; all associated costs were covered under Mont Miller’s warranty, maintenance and service (“WMS”) agreement. Mont Miller continues to surpass the 95% annual equipment reliability guaranteed under the WMS agreement.
Combined production from the German wind farms during the fourth quarter was 22% below last year due to calmer weather in October, resulting in a $0.4 million decrease in revenue. The turbines continued to perform very well as the farms achieved an overall reliability of 97% and a capacity factor of 19%.
The Fund’s management and administration costs were down $2.7 million in the quarter; the 2006 costs included a management incentive fee to the Manager ($1.8 million vs $nil in 2007) and legal fees incurred preparing for the special Unitholder meeting in January 2007 to approve the internal reorganization associated with the 2006 Kingston acquisition.
The Fund’s investment in Panda Energy Corporation (“PEC”) generated investment income of $2.0 million this quarter through a combination of interest and dividend payments, slightly lower than the same period last year.
On December 19, 2007, the Fund announced that it had reached a settlement with Calpine concerning its default in 2006 in supplying natural gas to the Iroquois Falls plant under a long-term contract. Calpine agreed to pay $32.0 million to settle the claim and IFPC agreed to pay $10.5 million to one of its other long-term gas suppliers to settle IFPC’s mitigation obligation under the backstop provisions of that supplier’s contract. Under the terms of IFPC’s management agreement and in connection with the settlement, the Fund’s Manager received a $6.5 million gas management incentive fee. Certain future incentive fees to the Manager will be lowered to take into consideration this one-time fee.
During the fourth quarter, the Fund recorded a non-cash foreign exchange loss of $0.2 million on the translation of the PEC senior loan balance to the quarter-end Canadian dollar/U.S. dollar exchange rate, and a $0.3 million non-cash loss in the fair value of the Kingston facility’s interest rate swaps.
A $4.5 million current tax charge was recorded in the quarter by IFPC related to the Calpine settlement, which was offset by a $7.8 million non-cash future tax recovery, mostly related to a reduction in the liability for future SIFT taxes as the Federal Government announced a reduction in the anticipated rate from 31.5% to 29.5% in 2011 and 28% thereafter.
The above factors resulted in net income for the fourth quarter of 2007 being $18.5 million higher than the fourth quarter of 2006.
Cash and cash equivalents increased by $8.6 million during the quarter, mainly due to receipt of the proceeds from settlement of the Calpine claim, partially offset by $2.8 million in funding to Thorold CoGen LP and $4.5 million in debt repayments at KCLP and Miller LP. To date, the Fund has advanced Thorold CoGen $4.1 million of the $30 million subordinated loan, following financial close and the start of construction.
Full Year 2007 Results
The results for 2007 include the financial contribution of 100% of the Kingston facility compared to 50% prior to March 23, 2006, and results from the German wind farms which were acquired in the second quarter of 2006. Differences in financial results between 2007 and 2006 are largely accounted for by these events and by continued strong performance at all of the Fund’s facilities and the Calpine settlement.
Revenue rose strongly in 2007, 12% over 2006 while income before taxes was $18.3 million (55%) higher than the previous year primarily due to the Kingston and German acquisitions, higher electricity production and sales at most of our facilities and the $15.3 million net settlement of the Calpine claim. In particular, production from the Mont Miller wind farm exceeded 2006 by 14% and the German wind farms exceeded long-term expectations.
Distributable cash at $90.9 million exceeded that of 2006 by $20.4 million (29%) and was $23.5 million higher than total distributions declared to Unitholders. Per unit cash distributions were $1.08 per unit — in line with 2006 distributions per unit. Distributions to Unitholders in 2007 were 8% tax deferred. The payout ratio of distributions to distributable cash was 75%, providing the Fund with flexibility for future acquisitions, funding of the loan commitment for the Thorold project and as a cushion against potential future tax obligations commencing in 2011.
Annual audited financial statements and MD&A are expected to be filed February 22nd at www.SEDAR.com and posted on the Fund’s website at www.NPIFund.com.
Outlook
Management expects the Fund’s 2008 distributable cash to be lower than 2007′s largely because of the one-time payment received from Calpine in 2007. Also, the Fund benefited in 2007 from the Kingston facility’s forward gas sales contracts that were entered into when natural gas prices peaked in late 2005 and are beginning to expire. However, distributable cash is still expected to exceed distributions by a comfortable margin.
Distributions to Unitholders in 2008 should continue at the level of $1.08 per unit and are expected to be approximately 10% tax-deferred and 90% taxable.
In light of the federal government’s decision to tax publicly-traded flow-through entities, the Fund’s Manager continues to receive questions from Unitholders and others in the investment community with regard to the future of Northland Power Income Fund. Management and the board of trustees are considering the Fund’s strategic alternatives prior to 2011. In the meantime, management sees no reason to change the Fund’s current legal status as a trust based on the benefit of the tax-free interim period that extends until 2011, which supports the Fund’s business model of generating strong, stable cash flows that are secured by long-life assets and contracts.
The Manager expects that the Fund’s strong financial position will allow it to continue to seek investment and acquisition opportunities that meet its criteria for increasing distributions while also protecting the Fund’s current risk profile.
ABOUT THE FUND
Northland Power Income Fund indirectly owns interests in six power-generating facilities: three natural gas-fired combined-cycle cogeneration power plants that efficiently and cleanly produce electricity and steam for sale, and three wind farms. Two cogeneration plants are located in Ontario: the 120 megawatt (“MW”) Iroquois Falls facility, and the 110 MW Kingston facility. Through its 19% equity interest in Panda Energy Corp (PEC) and loan to a PEC subsidiary, the Fund has an interest in the 230 MW Panda-Brandywine cogeneration power plant located just outside Washington, D.C. Electricity produced from the cogeneration plants is sold under long-term power purchase agreements (PPAs) with creditworthy entities to ensure revenue stability, and long-term contracts assure the supply and price of natural gas, which is the Fund’s largest cost. The 54 MW Mont Miller wind farm in the Gaspesie region of Quebec supplies electricity to Hydro-Quebec under a long-term PPA while the Fund’s two wind farms in Germany, with a combined capacity of 21.5 MW, sell electricity to regional power utilities under the provisions of German renewable energy legislation. The Fund has committed to provide $30 million as subordinated debt to Northland Power Inc.’s 265 MW Thorold Cogeneration Project that is under construction near the Town of Thorold, Ontario.
The Fund’s trust units and convertible debentures, which trade on the Toronto Stock Exchange under the symbols NPI.UN and NPI.DB respectively, are qualified investments for RRSPs and DPSPs under the Canadian Income Tax Act. The Fund has in place a distribution re-investment plan that allows unitholders who are residents of Canada to automatically have their monthly cash distributions reinvested in additional units. Participants do not pay any costs associated with the plan, including brokerage commissions. For further information or to join the plan, contact your financial advisor or broker.
FORWARD LOOKING STATEMENTS
The disclosure above contains certain forward-looking statements. Although these forward-looking statements are based upon Northland Power Income Fund’s Manager’s current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties including those set out in the management’s discussion and analysis section of the Fund’s 2006 annual report and in the Fund’s Annual Information Form dated March 30, 2007, certain of which are beyond the Manager’s control. For this purpose, any statements that are contained herein that are not statements of historical fact may be forward-looking statements. The Fund’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or what benefits, including the amount of distributions, the Fund and Unitholders will derive therefrom.
NORTHLAND POWER INCOME FUND Consolidated Balance Sheets (stated in thousands) ASSETS Dec. 31, 2007 Dec. 31, 2006 Current Cash and cash equivalents $ 28,311 $ 13,484 Cash reserves 2,630 1,664 Accounts and other receivables 32,073 30,380 Inventories 9,619 9,598 Prepaid expenses 2,789 1,907 Current portion of senior loan receivable 2,557 2,710 —————————————————————————- Total current assets 77,979 59,743 —————————————————————————- Deferred charges 1,932 4,766 Property, plant and equipment, net 405,744 434,928 Contracts 128,827 142,729 Investment in Panda Energy Corporation 7,946 7,946 Senior loan receivable 64,659 79,042 Loan receivable from Thorold CoGen LP 3,113 – Future income tax asset 590 1,404 —————————————————————————- $ 690,790 $ 730,558 —————————————————————————- LIABILITIES AND UNITHOLDERS’ EQUITY Current Accounts payable and accrued liabilities $ 16,233 $ 13,632 Current portion of KCLP debt 8,539 8,008 Current portion of Mont Miller term loan 1,108 951 Distribution payable to Unitholders 5,612 6,701 —————————————————————————- Total current liabilities 31,492 29,292 KCLP debt 76,494 85,033 Mont Miller term loan 37,133 38,241 Bank credit facility – 5,000 Other long term liabilities 2,475 9,715 Asset retirement obligation 2,275 2,935 Convertible debentures 29,044 29,282 Future income tax liability 73,850 – Derivative financial instruments 10,767 – —————————————————————————- 263,530 199,498 —————————————————————————- Trust Units 670,422 670,184 Accumulated other comprehensive income 151 145 Deficit (243,313) (139,269) —————————————————————————- Total Unitholders’ equity 427,260 531,060 —————————————————————————- $ 690,790 $ 730,558 —————————————————————————- NORTHLAND POWER INCOME FUND Consolidated Statements of Income (Loss) and Deficit (stated in thousands except per unit amounts) 3 Months Ended Dec. 31 12 Months Ended Dec. 31 2007 2006 2007 2006 Sales Electricity $ 41,201 $ 38,540 $ 149,147 $ 130,725 Steam 2,325 2,537 8,547 9,234 Natural gas 5,102 6,859 26,600 24,622 Emission allowances – – – 210 —————————————————————————- Total sales 48,628 47,936 184,294 164,791 —————————————————————————- Cost of sales 18,892 17,693 73,932 66,070 —————————————————————————- —————————————————————————- Gross profit 29,736 30,243 110,362 98,721 —————————————————————————- —————————————————————————- Expenses —————————————————————————- Plant operating costs 4,288 4,013 15,942 14,920 Amortization 6,781 6,908 27,369 25,355 Management and administration costs 1,622 4,318 5,531 11,111 Accretion expense 47 45 187 174 ————————————————————————— 12,738 15,284 49,029 51,560 —————————————————————————- Settlement of claim 15,343 – 15,343 – Investment income 2,013 2,528 8,981 11,123 —————————————————————————- Income from operations 34,354 17,487 85,657 58,284 Foreign exchange 275 (3,013) 10,774 (26) Amortization of deferred charges 26 165 105 654 Amortization of contracts 2,672 3,744 13,902 11,532 Change in fair value of interest rate swaps 288 – (3,205) – Interest income (237) (180) (950) (840) Interest expense and bank fees 3,348 3,586 13,513 13,700 —————————————————————————- Income before income taxes 27,982 13,185 51,518 33,264 —————————————————————————- Provision for (recovery of) income taxes Current 4,529 (671) 4,441 (588) Future (7,840) 1,110 74,267 (297) —————————————————————————- (3,311) 439 78,708 (885) —————————————————————————- Net income (loss) for the period $ 31,293 $ 12,746 $ (27,190) $ 34,149 —————————————————————————- Deficit, beginning of period as previously stated (257,771) (134,094) $ (139,269) $ (108,481) Cumulative effect of Adopting new accounting standards – – (9,520) – —————————————————————————- Deficit, beginning of period as adjusted (257,771) (134,094) (148,789) (108,481) Distributions declared to Unitholders (16,835) (17,921) (67,334) (64,937) Net income (loss) for period 31,293 12,746 (27,190) 34,149 —————————————————————————- Deficit, end of period $ (243,313) $ (139,269) $ (243,313) $ (139,269) —————————————————————————- Average number of units outstanding – basic 62,352 62,293 62,345 59,311 Average number of units outstanding – diluted 64,815 64,992 62,345 59,311 Net income (loss) per trust unit- basic $ 0.5019 $ 0.2046 $ (0.4361) $ 0.5758 Net income (loss) per trust unit – diluted $ 0.4904 $ 0.2039 $ (0.4361) $ 0.5758 NORTHLAND POWER INCOME FUND Consolidated Statement of Comprehensive Income (Loss) (stated in thousands except per unit amounts) 3 Months Ended Dec. 31 12 Months Ended Dec. 31 2007 2006 2007 2006 Net income (loss) for the period $ 31,293 12,746 $ (27,190) $ 34,149 Other comprehensive income (loss): Net change in translation of net investment in foreign operations 292 1,695 (1,300) 1,390 Net change in fair value of hedged foreign currency forward contracts (180) (1,364) 1,306 (1,245) —————————————————————————- Total other comprehensive income 112 331 6 145 —————————————————————————- Total comprehensive income (loss) $ 31,405 13,077 $ (27,184) $ 34,294 —————————————————————————- NORTHLAND POWER INCOME FUND Consolidated Statements of Cash Flows (stated in thousands except per unit amounts) 3 Months Ended Dec. 31 12 Months Ended Dec. 31 2007 2006 2007 2006 Operating activities Net income (loss) for the period $ 31,293 $ 12,746 $ (27,190) $ 34,149 Items not involving cash: Amortization 6,781 6,908 27,369 25,355 Amortization of contracts 2,672 3,744 13,902 11,532 Amortization of deferred charges 26 165 105 654 Amortization of financing and commitment fees (38) – (63) – Interest receivable from Thorold CoGen LP (83) – (101) – Change in fair value of interest rate swaps 288 – (3,205) – Foreign exchange 275 (3,013) 10,774 (26) Accretion expense 47 45 187 174 Other long term liabilities 408 168 1,133 425 Future income taxes (7,840) 1,110 74,267 (297) —————————————————————————- 33,829 21,873 97,178 71,966 Net change in non-cash working capital balances related to operations – (3,708) 1,509 (1,399) —————————————————————————- Cash provided by operating activities 33,829 18,165 98,687 70,567 —————————————————————————- Investing activities Cash reserves funding (28) (161) (966) (835) Loan to Thorold CoGen LP (2,777) – (4,112) – Thorold CoGen LP financing and commitment fees – – 1,165 – Investment in KCLP – – – (117,798) Receipts of principal on senior loan 675 706 2,701 2,793 Investment in German wind farms – – – (25) Purchase of German receivables form vendors – – – (3,879) Purchase of property, plant and equipment (15) (75) (147) (152) —————————————————————————- Cash (used in) provided by investing activities (2,145) 470 (1,359) (119,896) —————————————————————————- Financing activities Repayment of Mont Miller term loan (237) (202) (951) (808) Bank Indebtedness (1,765) (5,590) – – Prospectus receipts, net – – – 165,825 KCLP repayments of debt, net (4,293) (3,716) (8,008) (38,815) Repayment of German debt – – – (18,965) Credit facility increase (decrease) – – (5,000) 5,000 Distributions to Unitholders (16,835) (16,817) (68,423) (63,921) —————————————————————————- Cash (used in) provided by financing activities (23,130) (26,325) (82,382) 48,316 —————————————————————————- Effect of exchange rate differences on cash and cash equivalents 59 56 (119) 15 —————————————————————————- Net change in cash and cash equivalents 8,613 (7,634) 14,827 (998) Cash and cash equivalents, beginning of the period 19,698 21,118 13,484 14,482 —————————————————————————- Cash and cash equivalents, end of period $ 28,311 $ 13,484 $ 28,311 $ 13,484 —————————————————————————- PER UNIT Distributions declared to Unitholders $ 0.2700 $ 0.2875 $ 1.0800 $ 1.0800 —————————————————————————- NORTHLAND POWER INCOME FUND Distributions to Unitholders and Distributable Cash (stated in thousands except per unit amounts) —————————————————————————- —————————————————————————- 3 Months ended Dec. 31 12 Months ended Dec. 31 2007 2006 2007 2006 —————————————————————————- Cash provided by operating activities $ 33,829 $ 18,165 $ 98,687 $ 70,567 Capital expenditures (15) (75) (147) (152) —————————————————————————- —————————————————————————- Standardized distributable cash $ 33,814 $ 18,090 $ 98,540 $ 70,415 NPIF adjustments: Net change in non-cash working capital balances related to operations – 3,708 (1,509) 1,399 Scheduled receipts of principal on senior loan 675 706 2,701 2,793 Thorold Cogen LP financing and commitment fees – – 1,165 – Acquisition fees paid to Manager (1) – – – 2,385 KCLP cash reserve drawdown (funding) (28) (161) (966) (835) Scheduled Mont Miller repayment of debt (237) (202) (951) (808) Scheduled KCLP repayment of debt, net (2) (4,293) (3,716) (8,008) (5,357) Funds set aside for future maintenance (23) (22) (90) (77) Future maintenance funds utlized – – – 600 —————————————————————————- Distributable cash $ 29,908 $ 18,403 $ 90,882 $ 70,515 Distributions paid to Unitholders $ 16,835 $ 16,817 $ 68,423 $ 63,921 Standardized distributable cash payout ratio 50% 93% 69% 91% Distributable cash payout ratio 56% 91% 75% 91% —————————————————————————- —————————————————————————- Cumulative – since inception Standardized distributable cash $ 359,311 $ 260,771 Distributable cash $ 478,574 $ 387,692 Distributions paid to Unitholders $ 433,981 $ 365,558 Standardized distributable cash payout ratio 121% 140% Distributable cash payout ratio 91% 94% —————————————————————————- —————————————————————————- Average number of trust units – basic (thousands of units) 62,352 62,293 62,345 59,311 Average number of trust units – fully diluted (thousands of units) 64,815 64,992 62,345 59,311 —————————————————————————- —————————————————————————- Per unit ($/unit) Standardized distributable cash – basic $ 0.5423 $ 0.2904 $ 1.5806 $ 1.1872 Standardized distributable cash – fully diluted $ 0.5217 $ 0.2783 $ 1.5806 $ 1.1872 Distributable cash – basic $ 0.4797 $ 0.2954 $ 1.4577 $ 1.1889 Distributable cash – fully diluted $ 0.4614 $ 0.2832 $ 1.4577 $ 1.1889 —————————————————————————- (1) Fees to the Manager in connection with the acquisition of 50% of KCLP on March 23, 2006 and the German wind farms on April 25, 2006. (2) Excludes $33.5 million lump-sum repayment of KCLP’s levelization account with OEFC on March 22, 2006. NORTHLAND POWER INCOME FUND Supplemental Facility Information (stated in thousands, except as indicated otherwise) Iroquois Falls Facility ———————– 3 Months Ended Dec. 31 12 Months Ended Dec. 31 2007 2006 2007 2006 Sales Volume Electricity (MWh) 202,963 179,092 713,687 636,795 Steam (000 lb.) 293,001 283,286 1,075,154 1,070,538 Fuel Consumption (000 GJs) 1,861 1,700 6,685 6,225 Sales Electricity $ 20,134 $ 18,058 $ 68,469 $ 62,028 Steam 1,794 1,709 6,800 6,593 Natural Gas 227 1,208 4,064 5,880 Other – – – 210 —————————————————————————- Total sales $ 22,155 $ 20,975 $ 79,333 $ 74,711 —————————————————————————- Cost of sales Gas Consumed 8,598 7,091 30,157 26,676 Gas Resold 252 1,181 4,168 5,817 —————————————————————————- 8,850 8,272 34,325 32,493 —————————————————————————- Gross profit $ 13,305 $ 12,703 $ 45,008 $ 42,218 —————————————————————————- Plant Operating costs $ 1,845 $ 1,770 $ 6,575 $ 6,905 Capital Expenditures $ 15 $ 48 $ 139 $ 91 —————————————————————————- Kingston Facility —————– 3 Months Ended Dec. 31 12 Months Ended Dec. 31 2007 2006 2007 2006 Sales Volume Electricity (MWh) 133,547 124,978 489,976 449,019 Steam (000 lb.) 73,452 77,890 283,158 247,003 Fuel Consumption (000 GJs) 1,263 1,180 4,659 4,220 Sales Electricity $ 17,060 $ 16,049 $ 65,007 $ 56,590 Steam 531 827 1,747 2,641 Natural Gas 4,875 5,652 22,536 18,742 Other – – – – —————————————————————————- Total sales $ 22,466 $ 22,528 $ 89,290 $ 77,973 —————————————————————————- —————————————————————————- Cost of sales Gas Consumed 7,964 7,039 30,148 25,380 Gas Resold 2,078 2,383 9,459 8,197 ————————————————————————— 10,042 9,422 39,607 33,577 —————————————————————————- —————————————————————————- Gross profit $ 12,424 $ 13,106 $ 49,683 $ 44,396 —————————————————————————- Plant Operating costs $ 1,543 $ 1,458 $ 6,343 $ 5,321 Capital Expenditures $ – $ 27 $ – $ 61 —————————————————————————- NORTHLAND POWER INCOME FUND Supplemental Facility Information (stated in thousands, except as indicated otherwise) Mont Miller Facility ——————– 3 Months Ended Dec. 31 12 Months Ended Dec. 31 2007 2006 2007 2006 Sales Volume Electricity (MWh) 44,995 46,635 168,402 147,160 Sales Electricity $ 2,820 $ 2,884 $ 10,482 $ 9,050 —————————————————————————- Gross profit $ 2,820 $ 2,884 $ 10,482 $ 9,050 —————————————————————————- Plant Operating costs $ 549 $ 502 $ 2,074 $ 1,933 Capital Expenditures $ – $ – $ 8 $ – German Wind Farms —————– 3 Months Ended Dec. 31 12 Months Ended Dec. 31 2007 2006 2007 2006 Sales Volume Electricity (MWh) 9,136 11,666 38,358 23,267 Sales Electricity $ 1,187 $ 1,550 $ 5,189 $ 3,057 —————————————————————————- Gross profit $ 1,187 $ 1,550 $ 5,189 $ 3,057 —————————————————————————- Plant Operating costs $ 351 $ 282 $ 950 $ 761 Capital Expenditures $ – $ – $ – $ – Investment Income —————– 3 Months Ended Dec. 31 12 Months Ended Dec. 31 2007 2006 2007 2006 Panda Energy Corporation (“PEC”) Dividends $ 55 $ 133 $ 815 $ 1,024 Interest Income 1,837 2,395 8,002 10,099 —————————————————————————- $ 1,892 $ 2,528 $ 8,817 $ 11,123 Thorold CoGen LP interest and fees $ 121 $ – $ 164 $ – —————————————————————————- Total Investment Income $ 2,013 $ 2,528 $ 8,981 $ 11,123
Contacts: Northland Power Income Fund Management Inc. Barb Bokla Manager, Investor Relations (416) 962-6262 x156 (416) 962-6266 (FAX) Northland Power Income Fund Management Inc. Boris Balan Director of Communications (416) 962-6262 x116 (416) 962-6266 (FAX) Email: info@NPIFund.com Website: www.NPIFund.com
SOURCE: Northland Power Income Fund