Date: Wednesday 12 Sep 2012
LONDON (ShareCast) - Shares in Camco International, the developer of clean energy projects and solutions to reduce emissions, gained more than a quarter on Wednesday after first half revenues rose significantly.
During the half year period revenue earned totalled €12.2m, compared to €7.1m the same half the previous year and €10.2m for the whole of 2011.
The cost of sales declined, from €3.2m to €2.5m year-on-year (y/y), but the carbon price fair value downward adjustment of €2.07m, versus an upward adjustment in the first half (H1) of last year of €5.19m, resulted in lower gross profits for the period at €7.6m (2011 H1: €9.1m).
The restructuring of the carbon portfolio achieved during the period resulted in the downwards carbon price fair value adjustment for the period of €2.1m being lower than it would have been pre-restructuring and the board said it anticipates this effect will continue in future periods as volatility in the carbon price persists.
In total, revenue (including carbon price fair value adjustment) was €10.1m compared to €12.3m (H1 2011) and negative €11.5m (FY 2011).
Pre-tax profit for the period came in at €1.2m, against €2.7m the previous year and a loss of €29.3m in the whole of 2011, which included a fair value adjustment of €21.7m and capitalised cost write-down of €2.0m at the year end, to reflect carbon price reduction for floating price or unsold contracts.
Regionally, in the US Camco's 4.5 megawatt (MW) clean energy biogas plant became fully operational during the period, having been completed on time and ahead of budget. The project also received a grant of around $6m from the US Treasury in August 2012, the majority of which will be used to repay a loan which was used to fund part of the construction of the project.
In South East Asia the firm is developing a pipeline of projects that it anticipates will generate clean energy using local regulatory incentives. As part of this strategy the team acquired a 2 MW biogas development project in August 2012 to recover biogas containing methane from palm oil mill effluent. Construction of the project is expected to be completed in early 2013.
In China, the company has now successfully registered 96 carbon projects and will pursue the registration of the remainder of its projects by the end of 2012.
Camco has six offices in Africa pursing clean energy and carbon reduction projects. The company's recent successes include a contract win in Tanzania, where Camco and Rex were awarded US $4.7m to bring solar power to off-grid communities in rural Tanzania, the contract value to Camco being $1.1m.
Cash and cash equivalents increased by €1.7m to €16.1m with adjusted net cash increasing by €3.7m to €11.7m at the mid-year point from the end of 2011.
Scott McGregor, Chief Executive Officer of Camco, said: "Camco's business has developed well during the year, returning to profit and generating cash.
In H1 we continued to deliver on our strategy of developing and owning clean energy assets with success in North America and Asia. With proven project development expertise built up over 20 years, Camco is well positioned to deliver on our strategic goal of becoming a leading developer and owner of clean energy projects.
"Clean energy projects will provide the company with stable revenue streams from power production complementing our existing carbon business which we have successfully restructured to deliver returns even in a low carbon price environment and combined create long-term shareholder value."
The share price rose 23.53% to 5.25p by 08:45.
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