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 stated otherwise) | September 30, 2012 |
September 30, 2011 |
Variance | % | ||||||||||||
| Net profit (loss) from continuing operations | $ | 0.0 | $ | (1.5) | $ | 1.5 | 100% | |||||||||
| Results of discontinued operations | ||||||||||||||||
| Operating profit | 2.5 | 2.5 | - | - | ||||||||||||
| Finance costs | (3.9) | (4.9) | 1.0 | 20% | ||||||||||||
| Net loss: operations being disposed of | (1.4) | (2.3) | 0.9 | 39% | ||||||||||||
| Effect of services to operations being disposed of | 0.4 | 0.2 | 0.2 | 100% | ||||||||||||
| Total loss from discontinued operations | (1.0) | (2.2) | 1.2 | 55% | ||||||||||||
| Total net loss | (0.9) | (3.7) | 2.8 | 76% | ||||||||||||
| Net loss per share (basic and diluted) ($) | (0.01) | (0.03) | 0.02 | 67% | ||||||||||||
| Cash generated from operating activities | 2.9 | 2.6 | 0.3 | 12% | ||||||||||||
| As at September 30, 2012 |
As at June 30, 2012 |
Variance | % | |||||||||||||
| 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: [email protected]
SOURCE Nevada Geothermal Power Inc.
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