Aqua Resources Share Discussion Threads

[rivaldo] 29/10/2008 13:54

I thought you chaps might be interested in this article on HYD:



"October 15, 2008
Water, Water Everywhere... But Not Enough (Clean) Stuff To Drink
By Sally White

Even the official global water stats are terrible – l.1billion lacking safe drinking water, half all hospital beds filled by people suffering from water-related disease. Given the rising incidence of water-created chaos in floods across the UK, Europe and the US due to our increasingly volatile weather, unofficial water pollution and its impact is undoubtedly much higher and more dangerous.

The regulators are on to this. Tough water regulations have been coming into force in the EU and US. All of which is excellent news for a small UK company, Hydro International. The AIM-quoted £20 million cap company has a range of technologies to control water run off, treat storm water, combined sewage overflows and municipal wastewater. Relatively tiny though it is, Hydro is a world-leader in designs to bring cost-effective solutions for controlling quantity and improving quality of water.

Too small to attract much attention, it has nonetheless been growing steadily. Interim figures to end-June show sales up 35 per cent from £11million to £14.9 million, bringing pre-tax profits up 27 percent from £0.8 million to £1 million and giving earnings per share of 4.93p. This has come from both organic growth and acquisition, and there will be more of the latter given Hydro's prudent nurturing of its cash flow – outsourcing manufacturing. It closed the period with £3.7 million cash and equivalents. Forecasts are to sales this year to reach £32.2 million, giving earnings per share of 13.6p, up from 11.9p, and a dividend of 2.1p. For 2009 the forecast is for earnings of 16.3p and a 3.4p dividend, and these numbers for 2010 are 18p and a dividend of 3.7p.

Given that UK house builders had been the biggest single source of Hydro's business (15 per cent of sales) and the US economy was slowing rapidly, past progress and future expectations show the widening interest in its products. Sales are now also being made into Asia, with a new distribution agreement signed in Malaysia as well as another EU one in Belgium.

While chief executive Stephen Hides calls the current business environment (with some understatement) "challenging", he expects further progress to be made on growing Hydro. The marketing effort and acquisition targeting are designed to spread the net wider yet. Hydro is in the market for complementary technology to add to its circa 20 products, as well as for good customer lists.

A few months ago Hydro bought major US competitor, Oregon-based Eutek, in a £7 million deal. On the same day it was able to announce a £1.6 million contract for its Hydro-Brake flow control devices as part of a flood-prevention scheme in Glasgow. Eutek is important as it has patented equipment to remove fine grit, sugar sands, abrasives and solids from wastewater. Since this is the stuff that clogs up membrane filters, pumps and pipes, Eutek technology is invaluable. This adds a new dimension to the Hydro product list, built up since it was founded in 1980. Originally this was based around vortex technology, although in recent years it has added water storage, filtration and drainage devises.

Manufacturing is done by third-party engineering and fabrication companies based in Europe and North America, and sold through a wide network of independent distributors.

On its side is the urgent need of both UK and US governments to alleviate flood damage. The EU has its Water Framework Directive, with strict targets to be met by 2015. House broker KBC Peel Hunt anticipates that "this should boost Hydro's sales of storm water treatment products from 2009". Added impetus will be coming from the US Clean Water Act and other directives which force companies there to remove contaminants from storm water, and take steps to prevent sewers overflowing in storms. The US target dates are 2011 and 2012 and it is only just beginning to insist on measures that are standard in Europe, such as separation of sewage from storm water systems. As a result the aftermath of US flooding is particularly unpleasant, and positively dangerous. Hydro has products that tackle all of these issues, plus products for use in flood prevention programmes.

KBC Peel Hunt says "...these drivers should continue to benefit Hydro for many years to come." Thus, while the state of the UK and US housing markets, and a lag between the current and next EU directive, are likely to hold back Hydro's growth in the coming year, the medium term prospect looks very attractive. Profit breakdown is currently 61/39 per cent storm water/waste water management. Big buyers of the products are infrastructure builders, so Hydro will be gaining from the construction of new roads, rail and hospitals. For the UK, says KBC Peel Hunt, the likely drop in housing-related orders should be more than offset by work by water companies, on infrastructure and on "accelerated investment in flood control in the wake of 2007's disastrous floods." Much of the UK's water system dates back into Victorian times, and would need upgrading even without the escalating demands of weather and regulation!

US sales growth will be driven by tighter pollution control and the 10 per cent per annum rise in the grit removal market. Hydro is also encouraging US pipe and pre-cast concrete manufacturers to incorporate Hydro's devices within their products. The US is spending US$5 billion a year on improving its antique water systems. Outside these core markets Hydro is licensing products to companies in Australia, South Korea and New Zealand. And to help it in the more distant Asia-Pacific markets it is seeking local manufacturers.

The shares are quite a long way down from their peak – hardly surprising given its size and the state of the market. Even in the last year it has been up to 180p and the peak was around 240p, while it currently trades at around 130p. Since it has few competitors the chances of profile-raising orders to help both sales and shares look good."

[m.t.glass] 27/10/2008 07:31

sheeneqa - for future access to Post 71 I've added a clickable link in the header.

[praipus] 26/10/2008 21:57

If you like desaslination and energy from wind and wave power take a look at Renewable Energy Holdings PLC REH. They own the IP for CETO. CETO uses wave power to pump salt water on to land. Using the pressure created to desalinate the sea water and generate electricity. Very clever not fully commercialised yet but has attracted EDF as a share holder and has trials in australia at present. In the meantime they develop, manage and own their own wind farms, cash generative already.

[m.t.glass] 15/9/2008 07:10

- the Outlook paragraph from Amiad (AFS) results statement this morning:

"..The socio-economic rise of developing countries, along with the increasing demands upon water supplies in the western world, has resulted in Amiad experiencing considerable and sustained growth on a global scale in all segments. Additionally, the Company has enjoyed the fruits of marketing efforts with increased sales and new contracts in new territories.

Looking ahead, Amiad has entered the second half of 2008 with a backlog higher than at the corresponding period last year and also higher than at the beginning of the current year, as the positive trend of the first half has continued. As a result, the Company expects to report continued growth for the second half of 2008 compared to the corresponding period in 2007, and significant growth for the full year 2008 compared to 2007..."

[m.t.glass] 14/9/2008 10:58

added LWAT to header list

[mrx9000] 14/9/2008 08:50

Yes good ETF - Lyxor World Water (LWAT)

[scribbler101] 13/9/2008 17:34

There's probably a ETF.

[trigger45] 12/9/2008 07:31

Is there a UK trust devoted to water?

Apologies if I've missed anything.

[ted32] 11/9/2008 10:18

Modern Water mentioned in The Times today as "tiddler to watch"

[liarspoker] 11/9/2008 10:06

Rotork ( ROR ) is involved in the water industry. It makes actuators for both water and waste water companies ( as well as the O&G and power sector ).

Not a straight water play but very interesting none-the-less especially because it is entering China's water market in a big way ( amongst other things ):



Historically trading on a multiple of over 20 now trading at a forward multiple of less then 14. Tasty. :O)

ROR thread:

[serotine] 11/9/2008 09:46

Modern Water (MWG) Tipped in today's Independent

Modern Water

Our view: Buy

Share price: 89.5p (unchanged)

Arguing that investors should buy a stock in these iffy markets is hard enough, but when the company in question has not yet made a penny of revenues, the task is even tougher.

However, punters should buy Modern Water. The company is a water technology outfit, whose main business is running desalination plants using what they call manipulated osmosis technology: a method of osmosis that, they claim, is cheap and more efficient than normal desalination techniques.

The group issued its fairly inconsequential interims yesterday, but, more importantly, next week it will announce that its first plant in Gibraltar will be up and running, with clients in place. Following hot on the heels of that news will be the announcement of further deals, particularly in the Middle East.

Modern Water has no debt and £28.7m on its balance sheet. The company says that global spending on securing water sources in the next 10 years will reach $57bn (£32.4bn), and, while the group is very small fry indeed, next week's news should prove a boost to the share price, which has tailed off from year highs of 112.5p.

There is no getting away from the fact that Modern Water is a speculative punt and investors certainly should not bet their mortgage on the company, but, with the group set to start making money, now would be a good time to get in. Buy.

[m.t.glass] 29/8/2008 11:44

...For socially responsible and green investors, investing in water can support a double bottom line of earning returns while supporting the environment and communities. A number of indices, accompanying ETFs, and mutual funds follow global water companies. These include the Claymore S&P Global Water Index ETF, Dow Jones US Water Index, ISE-B&S Water Index, Janney Global Water Index, New Kinetics Water Infrastructure Fund, Praetor Global Water Fund, Powershares Water Resources ETF, Palisades Water Index, and S&P Water Index.

"Water is the ultimate 'green' investment," said William S. Brennan, president and managing partner for Aqua Terra Asset Management and Portfolio Manager of the Kinetics Water Infrastructure Fund. "As the most essential life-sustaining substance and the most critical input to economies around the globe, water is the only commodity that has absolutely no substitute at any price."

Aqua Terra Asset Management is a registered investment adviser that specialises in investing in global securities of water and water-related businesses. Established in 2006, the firm has a deep domain expertise in the global water industry and focuses on capital appreciation while employing an emphasis on preservation and risk management to limit portfolio exposure to market downturns and volatility....

...The Claymore S&P Global Water Index ETF has a global investment theme, giving investors access to 65 different stocks in pure play water companies across 10 countries. The ETF reflects the index's diversification between companies that focus on the material side of water production and companies that focus on the utilities and infrastructure side.

Top fund holdings as of the end of August 2008 in the Claymore S&P Global Water Index ETF include Veolia Environnement (7.59 per cent), ITT Industries inc (6.67 per cent), Geberit (6.53 per cent), Danaher Corp. (6.38 per cent), Kurita Water Industries (6.08 per cent), Nalco Holding (5.49 per cent), United Utilities Group (5.31 per cent), and Itron (4.68 per cent).

While new technologies around water are being actively explored, Brennan cautions that more than a good idea is needed for investors to make money. " While focusing on technologies, one must consider management's ability to commercialise it, open doors to customers, and the right strategies to convince the end user to adopt and scale a new technology. This requires a very specific, experienced management team."

Aqua Terra's team is looking at desalination, smart meters, nanotechnology, improved membranes and filters, and pipe rehabilitation in the form of " trenchless" replacement and "gray" pipes as new areas of growth in water technologies...

[praipus] 20/8/2008 15:23

This is from the REH Renewable Energy Holdings PLC thread. CETO a technology they own the IP for utilises wave power to pump and desalinate sea water and generate electricity!!!

Very simple massive potential.

dewi141 - 20 Aug'08 - 13:44 - 623 of 623


hi

REH appeared on cnbc this morning.

Video is here


cheers

[mart] 20/8/2008 14:16

Only just discovered this thread. Thought the following might interest:

[m.t.glass] 20/8/2008 08:37

Hmm.. I did often wonder about that. As to whether it meant on plain-looking people ;o)

[scribbler101] 20/8/2008 00:12

The rain in Spain falls mainly on the plain.

[m.t.glass] 19/8/2008 13:00

Spain is experiencing its worst drought in 40 years. Climate experts warn that the country is suffering badly from the impact of climate change and that the Sahara is slowly creeping north - into the Spanish mainland...

..the government is building more desalination plants, adding to the more than 900 already in Spain - the largest number in any one country outside the Middle East...

[celeritas] 13/8/2008 14:24

Missed this piece on Amiad



New Amiad AMF Self-Cleaning Microfiber Filter Ideal For Oil And Gas Production
August 5, 2008
Amiad Filtration Systems proudly introduces its new AMF Automatic Microfiber filtration system, a revolutionary automatic self-cleaning system that delivers filtration in the 2-to-20-micron range without consumable media - eliminating filter aids, cartridges and bag filters as well as the associated labor and disposal costs.

Fine microfibers wound around grooved plastic spools capture suspended and colloidal foulants, including both organic and inorganic particles.

The Amiad AMF is designed to perform well in oil and gas production for filtering produced water, as well as service water from either fresh or seawater sources. Cleaner produced water and service water can significantly extend the life of injection wells and equipment.

The Amiad AMF can also be used as part of a multi-stage filtration system for treating supply water or wastewater, protecting expensive membranes and dramatically reducing the need for time- and chemical-intensive membrane cleaning. In fact, installing an Amiad AMF upstream of an RO membrane can reduce membrane cleaning by a factor of four, according to Amiad vice president of sales and marketing Jim Lauria.

Extremely compact, the Amiad AMF's minimal size and weight footprint delivers fine filtration with automatic self-cleaning, minimal maintenance, and no cartridges to replace. Back-wash is far more water- and energy-efficient than with other filtration technologies, and is conducted without breaking the integrity of the filtration.

"The AMF system is a perfect extension of our Clean Water/Clean Technology philosophy," says Lauria. "It helps reduce chemical use, minimize back-flush, reduce footprint and lower energy costs. Those attributes show up on the environmental and economic bottom lines."

SOURCE: Amiad Filtration Systems

[celeritas] 30/7/2008 12:54

Blooming Deserts Turn Israeli Water Industry Into Money Magnet

By Tal Barak

July 30 (Bloomberg) -- At the end of a road winding through Israel's Negev desert, the entrance to Kibbutz Hatzerim is flanked by jojoba shrubs jutting from the arid earth.

The grove is the result of drip irrigation developed by Israeli engineer Simcha Blass in the 1960s that enabled the kibbutzniks to farm the desert. The company they started, Netafim Ltd., has sold the product in 110 countries from Germany to Peru.

``The founders were living in the middle of the desert and saw one agricultural failure after the other,'' Naty Barak, 64, a director at Netafim, said at the kibbutz visitors center. ``Back then it was their problem, but now it's a global necessity.''

Today, some 300 Israeli companies make equipment to deliver water or purify it with lasers or diffusion, putting them in a position to profit as climate change, population growth and food shortages strain supplies. With agriculture accounting for about two-thirds of global water use, the Israeli government predicts overseas sales of the technology will top $10 billion by 2017.

As a result, the businesses are attracting investors. Amiad Filtration Systems Ltd., which will help manage sewage treatment at the Beijing Olympics, is up 49 percent in the past year in London, giving it a market value of about $75 million.

Deere & Co., the world's largest maker of tractors and combines, on June 5 agreed to buy Israel's Plastro Irrigation Systems Ltd., Netafim's main competitor in agricultural irrigation, for an undisclosed sum.

`Track Record'

More than 1.1 billion people, mostly in Africa and Asia, don't have clean drinking water, according to the World Health Organization. Global food prices, meanwhile, surged 57 percent in March from a year earlier, United Nations data show.

``There is a growing lack of water in the world, and people are realizing now that it's an issue that's gaining momentum,'' said Nir Belzer, managing partner of Tel Aviv-based Gaon Agro Industries Ltd.'s $65 million clean-technology fund. ``In Israel, there's already a track record for water companies.''

Belzer's fund invested in closely held Desalitech Ltd., a Tel Aviv-based company that invented a way to take salt out of water using 20 percent less energy than standard reverse osmosis.

Amiad, founded 45 years ago on a kibbutz, developed what it calls ``suction scanning,'' a new way of filtering pollutants from water. It has a contract to remove iron from drinking water in Ramenskoye, a town near Moscow.

Atlantium Technologies Ltd. uses ultraviolet light to zap deadly organisms, a method employed by Coca-Cola Co.

`Conservative Market'

Two-thirds of Israel is desert. In the Arava region, south of Hatzerim, the average annual rainfall is less than 50 millimeters (2 inches). Wastewater there is cleaned for drip irrigation to grow fruit and vegetables, 80 percent of which are exported to Europe, Barak said.

Israel's Water Authority started a countrywide campaign in July to conserve resources as the Sea of Galilee, the main source of drinking water, dries up.

Israeli companies still face challenges finding investors and developing sales. While demand for water is high, few customers are willing to commit to new products, said Oded Distel, director at the Ministry of Industry, Trade & Labor.

``Israeli water-technology companies are dealing with a very conservative market that isn't always tempted to try the most innovative solutions,'' Distel said. ``Municipalities around the world are hesitant to try a new technology.''

With Netafim's system, farmers bury pipelines underground, allowing them to drip water and fertilizers directly onto the roots of their crops through devices that control the pressure and quality of the liquid.

Going Global

The company expects to double sales within a few years, according to Chief Executive Officer Ofer Bloch. Sales increased 25 percent to $500 million in 2007.

``An amazing agronomic knowledge has developed in Israel in the past 40 years, which we are now selling to the world,'' Bloch, 48, said at his Tel Aviv office.

One Netafim customer, Sociedad Agricola Drokasa SA in Peru, uses 10,000 miles of drip irrigation hoses. The company, known as Agrokasa, picked Netafim 12 years ago when starting production of avocados, asparagus and grapes.

``We contacted Netafim because we weren't just looking for hose, plastic or dripper suppliers, we were looking for a partner in technology,'' Jose Chlimper, Agrokasa's chief, said by telephone from the company's base in Lima.

The global water industry, which includes waste treatment, valves, pumps, filtration and desalination equipment, is worth about $400 billion, according to Francesca McCann, an analyst at Stanford Group Co., a Washington-based research company.

``There was little incentive to conserve water, but now with rising commodity prices and the climate change, that will boost demand for more efficient technologies,'' McCann said.

The market will reach $537 billion by 2010, according to Israel's Ministry of Industry, Trade & Labor.

At Kibbutz Hatzerim, surrounded by grass and trees, Barak displayed the first adapted hose used on the site.

``About 60 years ago, there was nothing here, only a dry wasteland,'' said Barak, a kibbutznik for four decades. ``This was the start of the development of a serious industry.''

To contact the reporter on this story: Tal Barak in Tel Aviv at [e-mail]

[miata] 30/7/2008 11:28

Released By South West Water

[celeritas] 30/7/2008 11:16

Agree M.T, great statement from Amiad, with substantial growth in all sectors and massive market penetration covering many sectors.