Consolidated Results Revenue was up 9% at $16.5 million for the quarter ended June 30, 2014, due to increased generation at both HS Orka and Soda Lake which resulted in an increase in gross profit by $0.7 million.
Net income was $6.0 million, an improvement against the comparative quarter ($2.3 million loss) resulting from the increase in revenue and a reduction in general and administrative expenses, as well as certain non-cash items including:
- A $4.0 million non-cash gain ($6.8 million loss in the comparative quarter) resulting from an increase in long-term forecast aluminum prices from March 31, 2014, which caused a reduction in the value of the embedded derivative liabilities.
- A $4.3 million non-cash gain ($2.4 million loss in the comparative quarter) on foreign exchange due to favorable movements in exchange rates.
The increases were offset by a reduction in the share of results of equity investees to $2.9 million, from $7.2 million in the comparative quarter. The reduction is due to the recognition of property insurance proceeds at Toba Montrose of $4.1 million in the comparative quarter, against $0.8 million recognized in the three months to June 30, 2014, as well as lower winds at Dokie 1 in the current quarter and lower water flows at Toba Montrose.
Consolidated cash and cash equivalents at June 30, 2014 were $38.6 million of which $36.1 million is held in the Company's Icelandic subsidiary ($41.7 million and $33.9 million respectively at December 31, 2013).