Run of River Power Inc. (TSX-V:ROR) reduced its net loss in 2011 by $4.4 million over 2010, according to the company’s annual financial report.
The company, which builds run-of-river hydro power projects, recorded a $2.7 million net loss in 2011, compared with $7.1 million in 2010.
That change was largely attributed to the write-down of two biomass energy projects last year. The projects were shelved due to uncertainty over BC Hydro’s intentions with respect to offering energy purchase agreements.
ROR took a $3.9 million hit on the two proposed projects, due to money it spent on engineering and other development work, ROR CEO Rick Hopp told Business in Vancouver.
ROR has one producing run-of-river power plant – Brandywine, which is generating revenue – and another in the works.
ROR managed to reduce its operating costs to $1.6 million in 2011, compared with $2.5 million in 2010. The increased cost efficiencies were attributed primarily to reduced corporate governance and operational improvements at the Brandywine facility.
In 2011, electricity sales from the Brandywine plant were $2 million – an increase of 7.1% ($137,743) over 2010.
“Our Brandywine facility demonstrated considerable efficiency and reliability improvements, allowing us to deliver our best production year since 2007,” Hopp said.
ROR is now working on the 25-megawatt Skookum Power Project. Under an agreement development company Concord Pacific, ROR will build the plant for a fee and Concord will eventually own the plant.
