Canadian Magma Energy swings to profit in Q1 FY 2010/2011

(ADPnews) - Nov 17, 2010 - Canadian geothermal power firm Magma Energy (CVE:MXY) said on Monday it returned to profit of CAD 13.4 million (USD 13.3m/EUR 9.7m) in the first quarter to September 30 of its fiscal 2010/2011 from a loss of CAD 2.7 million a year earlier.

The company said the result was mainly driven by CAD 8.4 million equity income from its investment in HS Orka power plant operations in Iceland, gained before taking controlling stake in August, CAD 7.6 million gains from changes to fair value of debt and derivatives, and CAD 6 million higher foreign exchange proceeds.

Magma increased its stake in HS Orka to 84.21% in August and to 98.53% in September.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came to CAD 5.9 million from a loss of CAD 2.5 million a year ago.

Revenue grew to CAD 8 million from CAD 1 million as net electricity production surged to 327,042 MWh from 12,240 MWh.

The company targets to increase production at its HS Orka and Soda Lake operations and to develop its Mariposa project in Chile to a large-scale drilling.

(CAD 1.0 = USD 0.989/EUR 0.727)

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