Highlights for the Year:
- Raised $6.3 million in new equity.
- Received zoning approval for its 120MW Windstar wind energy project.
- Engaged a senior lender to provide $200m in financing for Windstar
subject to final lender approval.
- Entered into a turbine reservation order for Windstar with a leading
turbine supplier.
- Received a 24 year extension of the Mesa land lease and the right to
repower and expand.
- Secured an 11MW PPA for a combined wind and solar project in Arizona.
- Signed an amendment to the Windstar PPA that updates the terms to
reflect the current market conditions and completion schedule.
- Secured additional prime wind and solar resource land in Tehachapi,
California.
Subsequent to the year end:
- Closed two loan agreements with institutional investors for a total
of $2.5 million.
- Selected a Institutionally recognized EPC - BOP contractor for
Windstar
- Commenced Engineering, design and preliminary construction on
Windstar
2009 FINANCIAL RESULTS
The Company is pleased to announce a 10% increase in electricity production to 58,859 MWh for the year ended December 31, 2009 compared to 53,579 MWh for the year ended December 31, 2008. However lower natural gas prices led to a decrease in the average Short Run Avoided Cost electricity selling prices which resulted in revenues decreasing 45% to $2,798,496 compared to $5,116,652 for the year ended December 31, 2009. Net loss from continuing operations increased from $4,993,000, or fifteen cents ($0.15) per share, for the year ended December 31, 2008 to a net loss of $5,023,162, or twelve three cents ($0.12) per share. The slight increase in net loss from continuing operations for the period was due to lower revenues and no interest recovery in 2009, which were mostly offset by a $1,400,182 (34%) decrease in general and administration costs and decreases in foreign exchange losses and amortization. Net loss for the year was $5,023,162, or twelve cents ($0.12) per share, compared to a net loss of $2,269,275, or seven cents ($0.07) per share, for the prior year. Net loss last year included income from discontinued operations of $2,724,047 primarily relating to a one-time US$3,000,000 reduction of the loan principal due to the Mesa loan repayment before the agreed upon repayment date of June 24, 2008. The net gain recorded was $2,900,000 after taking into account a Mesa Loan extension fee of $100,000.
Although electricity production for the three months ended December 31, 2009 was similar to the same period in the prior year, the decrease in average Short Run Avoided Cost electricity selling prices resulted in revenues decreasing 53% to $321,952 from $687,666 for the three months ended December 31, 2008. Despite the drop in revenues, net loss for the three months ended December 31, 2009 improved 33% to $1,512,001 or two cents ($0.02) per share compared to a net loss of $2,251,537 or seven cents ($0.07) per share for the comparable period in 2008 due primarily to a reduction in amortization, stock based compensation and travel expenses.
The Company's financial position continued to strengthen as cash increased from $1,817,371 as at December 31, 2008 to $1,882,152 as at December 31, 2009. Shareholders equity improved 11% from $22,442,493 last year to $24,843,162 primarily as a result of $6.3 million of new equity from the issue of shares and warrants.
The information in this news release should be read in conjunction with the Consolidated Financial Statements for the year ended December 31, 2009, prepared in accordance with Canadian generally accepted accounting principles, and the Management Discussion and Analysis for the year ended December 31, 2009. The financial statements and MD&A will be available at the Company's website at www.westernwindenergy.com and at www.sedar.com.
Western Wind is a vertically integrated renewable energy electrical production company that currently owns over 500 wind turbines with 34.5 MW of rated capacity and a further 131MW of expansion power purchase agreements in the States of California and Arizona. Western Wind further owns additional development assets for both Solar and Wind Energy in California, Arizona, Ontario, Canada and a development team in the Commonwealth of Puerto Rico. Western Wind is in the business of owning and acquiring land sites and technology for the production of electricity from wind and solar energy. Management of Western Wind Energy includes individuals involved in the operations and ownership of utility scale wind energy facilities in California since 1981.
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