Western Wind Energy Corp. ("Western Wind" or the "Company") announced
today its financial results for the year ended
December
31, 2009.
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.