News

VRB Power Systems Reports Third Quarter Financial Results

November 30, 2006 by Jeff Shepard

VRB Power Systems Inc. reported its financial results for the three and nine month periods ended November 29, 2006. Sales revenue and other income was $43,919 for the quarter and $226,842 for the nine months compared to $47,181 and $83,694 for the comparative periods in 2005. Expenses were $2,516,640 for the quarter and $7,765,330 for the nine months compared to $2,280,953 and $5,745,697 for the comparative periods in 2005.

Net loss after other items of $2,472,721 ($0.02 per share) for the quarter and $7,538,488 ($0.07 per share) for the nine months compared to $2,133,672 ($0.02 per share) and $794,883 ($0.01 per share) for the comparative periods (the net loss in the comparative nine month period included a gain of $4,467,050 on the disposal of the company's former subsidiary, Pinnacle VRB Ltd..

"During the quarter ended September 30, 2006, the company announced its largest sale to date," said Tim Hennessy, VRB Power Chairman & CEO. "This is a 1.5MW x 8hr (12MWH) VRB-ESS which is being sold to Tapbury Management Limited of Letterkenny, Co. Donegal, Ireland ("Tapbury") for approximately US$6.3 million. This VRB-ESS will be coupled to Phase II (6.9MW of wind generation) at Sorne which is due to be installed in Fall, 2007."

In September, the company announced that Sustainable Energy Ireland ("SEI") and Tapbury were jointly funding a study to ascertain and quantify the full potential economic benefits of coupling Vanadium Redox Batteries with wind farms in Ireland. This study focuses on Sorne and the benefits that will accrue through the coupling of the 12 MWH VRB-ESS to Phase II at Sorne. The data for this study is now complete and the report is being finalized. This report will form a "blue-print" for the sizing of VRB Energy Storage Systems with wind farms across Ireland and it will be used by SEI as part of their determination of the economic potential for battery storage in Ireland. Once finalized, it is anticipated that SEI will publish details of the Study.

"Designs for the building that will house the VRB-ESS at Sorne have been completed. Tapbury will use the results of the study to finalize the offtake and other commercial agreements for Phase II at Sorne and to complete the licensing and permitting process. Thereafter, this will position Tapbury to finalize its project finance requirements and to complete final contracts with the company. With estimates that there could be a need for in excess of 700 MW of storage in Ireland to enable the successful roll out of its most abundant natural resource, this is clearly a key sale for the company. Further updates will be provided to shareholders as we move towards completion of this project." Hennessy stated.