Tonbridge Power earns nine cents per share in Q2

2010-08-31 20:51 MT - News Release

Mr. Johan van't Hof reports

TONBRIDGE POWER INC. - 2010 SECOND QUARTER RESULTS AND CONSTRUCTION PROGRESS

Tonbridge Power Inc. has released its financial results for the second quarter ended June 30, 2010. There was a net income on a per share basis of nine cents (June 30, 2009 -- one cent). Total income for the three months ended June 30, 2010, was $3.3-million (June 30, 2009 -- $400,000).

"Permitting, design and ordering of materials is essentially completed and physical construction has started on both the substations and the transmission line. As well, the corporation has actively begun development work on its second project, the Green Line project, and is evaluating several other transmission line development opportunities," said Johan van't Hof, president and chief executive officer.

Significant quarterly highlights

MATL project construction in progress

• Pole insertions commenced Aug. 31, 2010.
• A notice to proceed with construction was issued on June 20, 2010, under the engineering procurement and construction agreement and is scheduled for a mid-2011 in-service date and on budget.
• Construction work commenced with the construction of the Marias substation in June.
• The required materials have been ordered, with many arriving at the two staging areas at Craddock, Alta., and Shelby, Mont.
• The contract to ship the phase shifting transformer (PST) from Germany has been finalized and the shipping process has begun. The PST is expected to be on site mid-November, 2010, in Lethbridge.
• Sufficient land easements have been completed, allowing construction to proceed.

Regulatory update

• On June 28, 2010, the Alberta Utilities Commission (AUC) extended the MATL permit, which was to expire on Dec. 31, 2010, and which now requires construction completion by Dec. 31, 2011.
• On June 30, 2010, the National Energy Board (NEB) denied the review and variance application of the landowners to amend the NEB permit, which was filed in November, 2009.
• On Aug. 18, 2010, the NEB confirmed that all required construction and environmental conditions of the NEB permit have been satisfied.
• On Aug. 27, the AUC denied a permit review and variance application filed by landowners early in 2010.
• The Alberta Surface Rights Board has issued 21 right-of-entry orders to date and rejected none of the company's requests for such orders.
• All material crossing agreements have been received or are now filed with counterparties.
• A total of 110 miles is now under easement from Marias north to 10 miles north of Highway 61. Construction has started on this section.
• The U.S. Army Corps of Engineers granted a federal wetlands temporary construction impact permit for five specific sites north of Marias.

Financial highlights

• As of June 30, 2010, the corporation had drawn down $38-million (U.S.) under the Western construction facility, and has received a further $21.9-million (U.S.) to Aug. 27, 2010, to finance project construction costs and accruals.
• Cash resources and aggregate favourable budget variances to date continue to indicate that the corporation has sufficient resources to complete the construction.
• In accordance with Canadian GAAP (generally accepted accounting principles), the company has determined that it is now more likely than not to recover the tax benefit from past non-capital losses, resulting in a $9-million future income tax benefit reflected and recorded in this quarter.

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