Thursday, August 18, 2016

Alterra Energy reports earnings. Stock price in stealth blowoff since early summer

Alterra Energy:

Revenue was $13.8 million for the quarter, up 2% from the comparative quarter primarily due to the strengthening of the Icelandic Krona.

The Company recorded net income of $3.4 million, down from the comparative quarter ($6.8 million), resulting primarily from changes in non-cash items such as the change in fair value of holding company bonds (Sweden).

Consolidated cash and cash equivalents at June 30, 2016 was $11.7 million of which $9.1 million is held in the Company's Icelandic subsidiary ($10.3 million and $6.4 million respectively at December 31, 2015).


Continued strong generation at Toba Montrose: Toba Montrose achieved record second quarter generation at 121% of budget, an increase from the comparative quarter (118% of budget).

Deep drilling project at HS Orka: The last major contract was signed for a 5,000 meter deep drilling program at the Reykjanes plant in Iceland. The rig has been deployed to site and drilling will commence in August.

Jimmie Creek project completion: Construction of the 62 MW hydro project was completed on time and within budget with first test power generated on June 10, 2016. Jimmie Creek commenced commercial operations on August 1 and began selling power to the British Columbia Hydro and Power Authority under a 40-year power purchase agreement.

The company continues to operate its existing assets at a high level while bringing on new generation on budget and on schedule. Listening to the conference call a couple of the analysts were asking management about instituting a dividend. Management gave the standard answer that it is under consideration by the board but that they are not going to confirm or deny if or when they would proceed. Nevertheless, something is going on as the company shares have advanced about 50% over the last few months.

Something is up here?

I will continue to hold this stock.

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