August 7, 2009 / 12:10 PM / 9 years ago

UPDATE 1-Boralex Q2 profit up 64 pct

* Q2 EPS C$0.05 vs C$0.03 yr ago

* Revenue rises 5 pct

Aug 7 (Reuters) - Canadian power producer Boralex Inc (BLX.TO) posted a 64 percent rise in its second-quarter profit, driven by a drop in maintenance and raw material costs and gains from acquisitions.

Boralex, whose core business is development and operation of power stations that run on renewable energy, reported a net income of C$1.8 million, or 5 Canadian cents a share, compared with C$1.1 million, or 3 Canadian cents a share, a year earlier.

Revenue from energy sales rose 5 percent to C$41.8 million.

Analysts on average were expecting earnings of 4 Canadian cents a share, before special items, on revenue of C$43.01 million, according to Reuters Estimates.

The second quarter profit was helped by a fall in maintenance and raw material costs, primarily in the wood-residue sector, positive impact of higher volume of electricity production, particularly in the wind power segment and acquisition of the Ocean Falls hydroelectric power station, the company said.

“Boralex is still looking for acquisitions, especially if they have the potential for operating results in the near term,” Chief Executive Patrick Lemaire said in a statement.

In July, Boralex, through its French subsidiary, had signed an acquisition contract to build and operate an 8 megawatt wind farm in France at a total investment of C$24 million.

Shares of the Montreal, Quebec-based company closed at C$9.19 Thursday on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Maju Samuel)

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