NaiKun Wind Energy Group Inc.
TSX VENTURE : NKW

NaiKun Wind Energy Group Inc.

February 05, 2010 08:30 ET

NaiKun Wind: First Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 5, 2010) - NaiKun Wind Energy Group Inc. (TSX VENTURE:NKW) continued in its most recent financial quarter to realize significant progress and achieved key milestones in the development of Canada's first offshore wind energy project, in British Columbia's Hecate Strait.

"Our most significant milestone in the quarter was the Environmental Assessment Certificate issued by the provincial government," said Paul Taylor, NaiKun Wind's President and CEO. "The NaiKun Wind project is now one of only a handful of projects participating in BC Hydro's Clean Power Call to have been granted a provincial certificate."

The Environmental Assessment Certificate was granted on December 10, 2009, by the British Columbia Environmental Assessment Office, marking the culmination of over six years of extensive environmental studies, analysis and community consultation. The Federal Government's decision on the environmental assessment application is expected in early 2010. The Haida Nation has also undertaken an environmental assessment of the project.

During the quarter, NaiKun Wind signed a Letter of Intent with Danish firm MT Højgaard covering the design, supply and installation of foundations, inter-array cables and other key project elements. MT Højgaard is a leading marine contractor for offshore wind energy projects in Europe.

Haida Enterprise Corporation (HaiCo), on behalf of the Council of the Haida Nation, continued during the quarter to pursue the opportunity to acquire up to 40 per cent of the project.

Also, during the quarter, there were a number of actions taken by the B.C. Government to support the growth of the renewable energy sector in the province. On October 28, 2009, the Provincial Government provided direction to BC Hydro to end its reliance on its Burrard Thermal generating facility. As well, on November 2, 2009, the B.C. government announced the establishment of a Green Energy Task Force to maximize the province's clean power potential, including an electricity export policy.

"The Provincial Government's recent actions to support the development of the renewable energy sector are very encouraging," said Taylor. "We look forward to the awarding of contracts under the Clean Power Call in the very near future and to understanding how the Green Energy Task Force's recommendations will contribute to the development of successful power procurement in B.C."

During the quarter ended December 31, 2009, NaiKun Wind incurred a net loss of $1.46 million ($0.04 net loss per share), compared to a net loss of $3.70 million ($0.09 net loss per share) for the quarter ended December 31, 2008. As at December 31, 2009, NaiKun Wind had $11.52 million in cash and cash equivalents, compared to $14.29 million at the end of September 2009.

The Company will continue efforts to preserve cash and ensure that its cost structure is affordable while sustaining business objectives. The current project plan will see operating revenue from the project begin to flow in the second half of 2013, and the Company continues to seek opportunities to complement this with near-term revenue.

NaiKun Wind Energy Group Inc. is a British Columbia-based renewable energy company with offices in Vancouver, Masset and Skidegate. The 396MW offshore wind energy project will generate enough energy to provide electricity to 130,000 B.C. homes and play a significant role in combating climate change. The project will also create an estimated 200 jobs during construction and 50 permanent jobs for maintenance and operations. NaiKun Wind is committed to working in partnership with First Nations and collaboratively with stakeholder groups and local communities in the development of its project. For more information on NaiKun Wind, please visit www.naikun.ca.

Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • NaiKun Wind Energy Group Inc. - Media Enquiries
    Doug McClelland
    Director, Communications
    604-631-4487
    dmcclelland@naikun.ca
    or
    NaiKun Wind Energy Group Inc. - Investor Enquiries
    Peter Murray
    Manager, Investor Relations
    604-631-4494
    pmurray@naikun.ca
    www.naikun.ca