Nevada Geothermal Power reports results for last quarter of 2010
Nevada Geothermal Power reports financial results for last quarter of 2010, reporting an increase of 123% in revenues over the same period last year, based mostly in the improvement of operations at its Blue Mountain geothermal power plant in Nevada.
In a release last week, “Nevada Geothermal Power Inc. (TSX.V: NGP) announced results for the quarter ended December 31, 2010. Gross margin for the three months was $3.0 million and the net profit was $20,231.
The full financial results are available at www.sedar.com and on the Company’s website at http://www.nevadageothermal.com.
Revenues have increased by 123% to US$5.8m compared to the same quarter last year, with an increase in operating expenses of 50% from US$1.2m to US$1.8m.
Commenting on the results, the Company’s president and CEO Mr. Brian Fairbank said, “Operations at Blue Mountain have shown a steady improvement throughout the last year and this is reflected in this quarter’s financial results. The plant generated an average of approximately 47MW (gross), 36 MW (net) during the quarter, despite electrical repair work lowering production. The Company expects further improvement in plant output once current well field work has been completed.”
Drilling began at Crump Geyser under a Joint Venture Agreement with Ormat to develop an up to 30 MW project that is anticipated to qualify for an American Recovery and Reinvestment Act (ARRA) Federal Treasury Grant.
Downward revision of long term Blue Mountain power production forecast results in (non cash) gain of $3.6 million during the quarter, as a result of a lower estimate of the cash settled option value in 2023 and further deferral of EIG (previously TCW) loan costs.
Agreement reached to purchase Imperial Valley, California properties from Iceland America Energy, Inc. adds development opportunities.
Testing of recently completed wells is underway at Blue Mountain and Crump Geyser. Mr. Fairbank said, “We are excited about the start of development drilling at Crump Geyser with Ormat and acquiring two new advanced stage projects in the Imperial Valley, Southern California.”
Source: Company release via Centre Daily