Ram Power reports record revenues for the first half of 2012
Developer and operator Ram Power Corp. announces record revenues and EBITDA for the first half of 2012. Achievement of commercial operation of the Phase I extension of its San Jacinto-Tizate project in Nicaragua leds to increased revenues and earnings.
Last week, geothermal developer and operator Ram Power announced record revenue and EBITDA numbers for the second quarter of 2012.
The achievement of commercial operation of the Phase I expansion at San Jacinto in January 2012 led to record revenue and earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the three and the six months ended June 30, 2012. The Company recorded revenue of $7 million and EBITDA of $6.9 million for the quarter, and revenue of $13.4 million and EBITDA of $9.5 million year-to-date.
For the six months ended June 30, 2012, the Company reported revenue of $13.4 million and a net loss of $2.5 million ($0.01 per share) versus revenue of $2.1 million and a net loss of $11.2 million ($0.06 per share) for the same period in 2011. Increased revenue resulted from the Phase I Expansion being placed in service in January 2012.
EBITDA increased to $9.5 million for the six months ended June 30, 2012 versus negative EBITDA of $11.4 million in the prior year’s comparable period. The increase in EBITDA of $20.9 million principally resulted from a $10.1 million increase in gross profit from San Jacinto operations, a $6.3 million decrease in the valuation of the Company’s warrant liability, $3.6 million of 2011 delay damages and a $2.3 million decrease in other operating costs and expenses, partially offset by $1.4 million of 2011 stock compensation credits.
For the six months ended June 30, 2012, the Company used $4.8 million of cash for operating activities and $33.6 million for additions to geothermal properties and other capital assets, with $21 million of cash provided by the San Jacinto Phase II credit facility less $1.5 million in repayments of the San Jacinto Phase I credit facility. At June 30, 2012, the Company had cash of approximately $38.3 million of cash, of which $30.6 million was held for use in the San Jacinto project and operations.
Shuman Moore, President and CEO of Ram Power, stated, “The Company continues to make great strides in the development of the Phase II expansion. With approximately 84% of construction completed, we fully expect Phase II to be operational in December 2012, which will result in further increases in revenue and EBITDA in 2013. In addition, we have reached agreement with the supervising Government agencies on the tariff increase and are awaiting its final review and approval by President Ortega’s Administration, which we expect in the near future.”
Source: Company release via equities.com
Currently, the Phase I Expansion is operating at 36 MW (net), and the Company is completing the full integration of the steamfield gathering and injection systems required for both Phase I and Phase II operations, which is expected to result in 72 MW (net) output upon completion of the Phase II Expansion. The existing 10 MW back pressure facility is not currently in operation, and will be decommissioned following the completion of the Phase II Expansion. In addition, the Company has deferred commencement of the planned 10 MW (net) San Jacinto-Tizate Binary Unit expansion until the available brine flow from the Phase I and Phase II Expansions is confirmed.