British Columbia-based Western Wind Energy nearly doubles its Q2 net loss year-over-year to US$1.2M on higher operating expenses; revenues grow 12% to US$1M on increased energy production, partially offset by decreased price

Rachel Carter

Rachel Carter

Aug 16, 2011 – Western Wind Energy

VANCOUVER, British Columbia , August 16, 2011 (press release) – Western Wind Energy Corp. (TSX.V - "WND") (the "Company") reported today, its unaudited condensed interim consolidated financial results for the three and six months ended June 30, 2011. For complete details of the second quarter Condensed Interim Consolidated Financial Statements and related Management's Discussion and Analysis, please see the Company's filings on SEDAR (www.sedar.com) or on EDGAR (www.sec.gov). All amounts herein are reported in US dollars unless otherwise specified.

HIGHLIGHTS

The 10.5 MW Kingman wind and solar project has reached mechanical completion of the five (5) 2MW Gamesa G90 wind turbines. The solar panels, inverters, and tracking system have been delivered and Western Wind expects completion of the solar portion by the end of August 31, 2011. Western Wind expects the utility provider to energize the project by August 31, 2011 and commercial operations to commence shortly thereafter.

The 120 MW Windstar wind project has 88% of the foundations completed, 83% of the base-set towers installed, 82% of the mid-set towers installed, 32% of the top-set towers installed, and 25% of the turbines are structurally & electrically complete. To date, 85% of the G80 & G87 wind turbines have been delivered to the site. Western Wind expects the first phase (106MW) of the 120MW project to be commercially operational in the fourth quarter of 2011 and the remaining 14MW to be commercially operational in the first quarter of 2012.

SELECTED QUARTERLY DATA AND RESULTS OF OPERATIONS

For the three and six months ended June 30, 2011 and 2010
($000's except per share and share amounts)

  Three
months
ended June
30, 2011
Three
months
ended June
30, 2010
Six months
ended June
30, 2011
Six months
ended June
30, 2010
Total revenues $1,047 $936 $1,559 $1,427
Loss before discontinued operations operations $1,235 $648 $1,633 $1,686
Loss before discontinued operations per share $0.02 $0.01 $0.03 $0.03
Net loss $1,235 $648 $1,633 $1,686
Loss per share, basic and diluted $0.02 $0.01 $0.03 $0.03
Weighted average common shares outstanding, basic and diluted 58,653 49,521 57,213 48,946


Western Wind generated a loss of $1,234,965 and $1,633,063 for the three and six months ended June 30, 2011, respectively, compared to a loss of $648,326 and $1,685,856 for the three and six months ended June 30, 2010. Basic and diluted loss per share was ($.02) and ($.03) per share for the three and six months ended June 30, 2011, respectively, compared to a loss of ($.01) and ($.03) per share for the same period of 2010.

Energy Sales

Western Wind's Mesa and Windridge wind farm sales totalled $1,047,212 and $1,558,562, for the three and six months ended June 30, 2011, respectively, compared to $936,263 and $1,427,402 for the same period of 2010. The increase in energy sales was primarily attributable to an 18% increase in energy production, partially offset by an 8% decrease in price, due to lower natural gas prices. The increase in energy production is due to a higher than normal wind year in 2011 (5.3% above the 10 year average), compared to a low wind year in 2010 (9.7% below the 10 year average).

Operating Expenses

For the three and six months ended June 30, 2011, Western Wind incurred continuous operating expenses totalling $2,556,583 and $4,709,747, respectively, compared to $1,657,894 and $3,333,126 for the same period of 2010. The increase in continuous operating expenses was largely attributable to an increase in genereal and administrative expense of $542,941 and $876,280, for the three and six months ended June 30, 2011, respectively. Additional increases in operating expense can be attributed to increases of $131,023 and $234,087 in interest on loans payable, and increases of $162,270 and $153,047 in foreign exchange losses, for the three and six months ended June 30, 2011, respectively.

Western Wind's increase in general and adminstrative expense primarily related to an increase in stock based compensation expense, due to the issuance of 3,100,000 options to the Company's contractors, employees and directors in December, 2010. Further increases in general and administrative expense, can be attributed to the additional salaries, professional and consulting fees required to accommodate the increased work load from the construction of our Windstar and Kingman wind farms.

The Company's increase in interest expense is directly attributed to the corporate debt obtained in December, 2010.

Mark to Market Gain (Loss) on Canadian Dollar Warrants

For the three and six months ended June 30, 2011, Western Wind recorded $168,797 and $1,003,269, respectively, in mark to market gains on its Canadian dollar warrants, compared to $Nil for the three and six months ended June 30, 2010. These mark to market gains can be attributed to the appreciation of the Canadian dollar against the US dollar. The gain is reported in the statement of operations in accordance with US GAAP, which was adopted by Western Wind as of January 1, 2011.

Income Tax Recovery

For the three and six months ended June 30, 2011, Western Wind incurred an income tax recovery of $97,046 and $501,579, respectively, up from $72,867 and $196,582 for the same period of 2010. The increase was directly related to the recognition of taxable net operating losses for the three and six months ended June 30, 2011.

ABOUT WESTERN WIND ENERGY CORP.

Western Wind is a vertically integrated renewable energy electrical production company that currently owns over 500 wind turbines with 165 MW of rated capacity either in production or in construction in the States of California and Arizona. Western Wind further owns additional development assets for both solar and wind energy in California, Arizona, and Ontario, Canada; and 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 includes individuals involved in the operations and ownership of utility scale wind energy facilities in California since 1981.

ON BEHALF OF THE BOARD OF DIRECTORS

"SIGNED"

Jeffrey J. Ciachurski
President & Chief Executive Officer

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

Share:

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025 795

+1 (310) 558 0008
+1 (310) 558 0080 (FAX)

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.