Raser Technologies reports US$64m loss after impairment charge

Raser Technologies reports US$64m loss after impairment charge Thermo No.1 plant in Utah (source: Raser Technologies)
Alexander Richter 13 Aug 2010

Impairment charges of US$52million for its Thermo No.1 plant land a deep US$64million loss for Q2 of 2010 for Raser Technologies.

In a release by the company, “Raser Technologies  announced it recorded a net loss for common shareholders of $64 million on revenues of $1.0 million for the quarter ended June 30, 2010, compared to a net loss of $4 million on revenues of $0.4 million. The loss came as Raser took a $52 million impairment charge for its Thermo No.1 plant.

Commenting on economic viability of Thermo No.1, Nick Goodman, CEO of Raser, said, “While the output of Thermo No. 1 is lower than anticipated, our discussions with other geothermal equipment manufacturers indicate that the current temperature and flow of the project could be sufficient to achieve output of 10-11 MW using larger binary generators. While there are certain benefits to the smaller generators currently in use at Thermo No. 1, they are not as efficient as larger units.”

In a press release last July, the company announced that plans are being made to sell all or a part of its interest in the Thermo No.1 plant in order to raise the cash needed to satisfy its obligations to its senior secured lenders.

Under its agreement with its senior secured lenders, Raser has paid $27 million out of project escrow accounts and is obligated to make an additional payment of $6 million before June 29, 2011.

Raser announced that its Lightning Dock project, a geothermal resource project located in southwestern New Mexico, has started drilling. The company believes the geothermal project will be able to support a 15 megawatt power plant.

The company has also entered into a non-binding Memorandum of Understanding with Hyundai Heavy Industries to collaborate on developing renewable energy and electric vehicles.”

Source: Company release via Proactive Investors