Camco International Share Discussion Threads

[battlebus2] 20/9/2012 08:18

Cause it's not their money.

[27howard] 20/9/2012 08:15

Makes you wonder why a fund would sell down a stock that is so cheap ?

[ch1ck] 20/9/2012 08:14

Sorry will remove the post

[muckshifter] 20/9/2012 08:00

Er... the RNS says that they have reduced their holding. They had to issue one because they went from above 10% to below 10%.
Regards.

[27howard] 20/9/2012 07:59

Very badly researched chaps, Tudor is the seller here, they have just gone under 10% that is why the rns.

Here is a link when they held 13%

[battlebus2] 20/9/2012 07:56

edit. should read more carefully.

[ch1ck] 20/9/2012 07:55

Tudor has just bought a 9% stake. This is a massive vote of confidence in the stock, I could not see the spike in volume in trade for the 18 th which is strange.That should be the overhang cleared with little in the way to stop a move to higher ground. A couple of positive RMS notes would be just the ticket.

[aishah] 19/9/2012 14:19

Tanzania: Kigoma Solar Power Project Takes Off

[27howard] 12/9/2012 08:22

See what I mean, sale at 4.84p when 5p bid, for the last 4 weeks or more the price
has been 4.2p offer or less so I guess they will take their profits, wait a while
and you might see a really good entry price today.

[ch1ck] 12/9/2012 08:07

GerryJames

Thanks for that, it was a just a matter of time untill this broke out, early days I know but this is defo my hottest stock for the the future.

I am holding so many of these now I won't buy any more but great to see the rise today.

[battlebus2] 12/9/2012 08:06

Thanks ch1ck. 27howard can only see progress but as you say it will take time.

[rat attack] 12/9/2012 08:04

it is still the perception of carbon credits that is holding this back.

[27howard] 12/9/2012 07:56

Well the last set of results or trading update saw the same excitement and the price finished down, for some reason people do not get excited about Cao, I see
initial buying then a sell off as normal.

[howdlep] 12/9/2012 07:54

Value is about to be realised. The markup is simply the start.

8.1p cash per share, business reorgansised, grants in place, excellent forward looking statement. Now try and get a good line of stock.

[gerryjames] 12/9/2012 07:53

Ch1ck......well done on keeping the faith and buying.

Good Luck.

[27howard] 12/9/2012 07:50

Not often you see a 50% mark up on results, I thought there has been a bid this morning, this kind of rise has been waiting for a long time with CAO !

[ch1ck] 12/9/2012 07:47

These ARE NOT undervalued Battle. Happy

These should now fly if they are not 20p by next year I will eat my hat

[gingerplant] 12/9/2012 07:45

battlebus2 These are undervalued - worth 10p now acc to my calcs, and that would be a firly harsh valuation.

[battlebus2] 12/9/2012 07:39

Tell me these are not undervalued!

[howdlep] 12/9/2012 07:24

Share price 4.25p, Nett cash per share is 8.1p, inclusive of 3.1p of nett cash held within Camco South East Asia:-


Camco International Ltd Interim Results

TIDMCAO

RNS Number : 0466M

Camco International Ltd

12 September 2012

12 September 2012

Camco International Limited

("Camco" or the "Company")

Interim Results 2012

Camco International Limited (AIM: CAO), a global developer of clean energy projects and solutions to reduce emissions today announces its results for the six months to 30 June 2012.

Scott McGregor, CEO 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."

FINANCIAL HIGHLIGHTS for the period ending 30 June 2012

-- Adjusted net cash(1) of EUR11.7 million increased from year end representing 5.0 pence per share (31 Dec 2011: EUR8.0 million; 30 June 2011: EUR14.9 million)
-- Additional 3.1 pence per share of net cash(2) within Camco South East Asia

H1 2012 FY 2011 H1 2011
EUR'000 EUR'000 EUR'000
Revenue earned in the period
(excluding carbon price fair
value adjustment) 12.2 10.2 7.1
Carbon price fair value adjustment (2.1) (21.7) 5.2
-------- -------- --------
Revenue (including carbon price
fair value adjustment) 10.1 (11.5) 12.3
Gross Profit 7.6 (16.1) 9.1
Administrative expenses (6.5) (13.4) (6.4)
Profit from continuing operations 1.1 (29.6) 2.6

2012 OPERATIONAL HIGHLIGHTS
-- North America
o 4.5 MW clean energy biogas plant operational, completed on time and ahead of budget

o Grant of approximately US $6m from US Treasury received in August 2012
-- South East Asia
o 2 MW biogas plant acquired in August 2012
-- China
o Carbon portfolio of CERs restructured to provide value at any carbon price

o EUR39.4m of discounted future gross cash flows based on the forward price curve as at 30 June 2012
-- Africa
o Awarded US $4.7m contract with project partner Rex to bring solar power to off-grid communities in rural Tanzania, (value to Camco of US $1.1m)
-- UK
o Non-core advisory business sold for an initial consideration of EUR3.8 million

Notes
(1) Adjusted net cash is calculated as follows:

H1 2012 FY 2011 H1 2011
EUR'000 EUR'000 EUR'000
Cash and cash equivalents 16,101 14,369 14,865
Less cash restricted for sole
use in construction of biogas
project in North America (456) (2,231) -
Less unsecured loans (3,904) (3,858) -
Less bank overdraft (discontinued - (232) -
operations)
-------- -------- --------
Adjusted net cash 11,741 8,048 14,865

Adjusted net cash per share (pence) 5.0p 3.6p 6.3p

(2) Net Cash held by Camco South East Asia Limited "CSEA"):

H1 2012 FY 2011 H1 2011
EUR'000 EUR'000 EUR'000
Net cash attributed to Camco 7,310 7,971 8,693

Net cash attributed to Camco
per share (pence) 3.1p 3.5p 3.7p

Adjusted net cash in note (1) above does not include net cash held by Camco South East Asia Limited ("CSEA") which Camco accounts for as a joint venture. Camco currently owns 60.1% of CSEA. The balances in Note 2 above reflect Camco's percentage share of the net cash in CSEA.

(3) H1 2012 refers to the unaudited 6 month period to 30 June 2012 or as at 30 June 2012, FY 2011 refers to the audited 12 month period to 31 December 2011 or as at 31 December 2011, and H1 2011 refers to the unaudited 6 month period to 30 June 2011 or as at 30 June 2011

Enquiries:

[phone]
Camco 6100
Scott McGregor, Chief Executive Officer
Jonathan Marren, Chief Financial Officer

Singer Capital Markets (Camco Nominated [phone]
Adviser and Broker) 7500
James Maxwell

[phone]
Kreab Gavin Anderson (Investor Relations) 1842
Ken Cronin

[phone]
Citigate Dewe Rogerson (PR Advisor) 9571
Chris Gardner / Malcolm Robertson

Financial Review for the period to 30 June 2012

Camco has had a successful first half of 2012 finishing with increased adjusted net cash of EUR11.7m compared to EUR8.0m at the beginning of January 2012.

Revenue earned (excluding carbon price fair value adjustment) increased to EUR12.2m compared to EUR7.1m (H1 2011) and EUR10.2m (FY 2011).

The restructuring of the carbon portfolio achieved during the period resulted in the downwards carbon price fair value adjustment for the period of EUR2.1m being lower than it would have been pre-restructure and the board anticipates this effect to continue in future periods as volatility in the carbon price persists.

In total, revenue (including carbon price fair value adjustment) was EUR10.1 million compared to EUR12.3m (H1 2011) and negative EUR11.5m (FY 2011).

Our 4.5 MW clean energy biogas plant in Jerome, Idaho was ramping up during the period and therefore reflect a limited contribution to revenue in H1 2012. That plant is now fully operational and is anticipated to contribute significantly more to the segmental result in the second half.

The carbon business contributed revenue of EUR10.2m excluding the carbon price fair value adjustment (H1 2011: EUR6.4m). Looking ahead to the second half of the year and into 2013, we expect to record more revenue from our 2012-20 carbon portfolio as our projects become operational with a corresponding increase in accrued income in accordance with our accounting policies. As cash is received from carbon contracts as they deliver credits through to 2020, this accrued income balance will reduce. We may also choose to enter into structured forward sales of credits, which will have the effect of converting accrued income into cash at that point.

Carbon operating expenditure was reduced to EUR1.9m (H1 2011: EUR2.7m), which we anticipate reducing further in the second half and beyond.

Overall administrative expenses during the period were EUR6.5m compared to EUR6.4m (H1 2011) and EUR7.0m in the second half of 2011 (EUR13.4m (FY 2011)). We will continue to keep a tight control over costs in order to preserve cash for investment in project development activities.

Profit from continuing operations for the period was EUR1.1m compared to EUR2.6m (HY 2011) and a loss of EUR29.6m (FY 2011).

Cash and cash equivalents increased by EUR1.7m to EUR16.1m with adjusted net cash increasing by EUR3.7m to EUR11.7m at the period end from FY 2011. Adjusted net cash excludes cash restricted for sole use in construction of projects and debt secured against a project which will be amortized over the life of that project. The increase in cash takes account of the sale of the UK advisory business, final amounts spent on the North America clean energy biogas plant and net cash flows from operating activities.

Operational Review

North America

In the US, Camco's 4.5 MW clean energy biogas plant became fully operational during the period. The project was completed on time and ahead of budget. The project also received a grant of approximately US $6m from 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.

The company will continue to develop its portfolio of biogas projects across North America and looks forward to making further announcements as projects come on-line.

Our US team has continued to develop our agricultural carbon portfolio for use in the California market, which will be the second largest after the EU ETS when it begins in 2013. Camco continues to lead the agricultural biogas sector in the US, with 2.5m tonnes now under management and the largest number of "Livestock Gas Capture/Combustion" projects registered under the Climate Action Reserve (CAR) standard.

South East Asia

The team is now developing a pipeline of projects that 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. The team is pursuing further development of biogas and energy efficiency projects.

In H1 we completed 13 carbon project registrations and are aiming to complete registration of the remaining projects in time for the registration deadline at the end of this year.

Camco's South East Asia's net cash balance as at 30 June 2012 (within its joint venture) was EUR7.3m (not included within Group cash balance).

China

Our team in China has been working hard on developing and registering its portfolio of carbon projects in time for the 2012 registration deadline. We are also exploring opportunities to build on our carbon project success and develop new clean energy projects in the region.

Our team has now successfully registered 96 carbon projects and will pursue the registration of the remainder of its projects by the end of 2012. The team has also delivered 17.9m tonnes to 30 June 2012.

Camco's China carbon portfolio of CERs is structured to provide discounted future gross cash flows of EUR39.4m based on the forward price curve as at 30 June 2012 (see below).

Africa

Camco has six offices in Africa pursing clean energy and carbon reduction projects. Recent successes included 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 US $1.1m

Other

As announced at the time of our 2011 results, the restructuring of Camco's carbon portfolio in H1 2012 was a significant event and aligns it with current market conditions.

The following tables outline CER discounted future gross cash flows as at 30 June 2012 (the date of the last review) based on the forward curve at that date. A price sensitivity analysis is also included to show how movements in the forward price curve will impact this value.

CER Carbon Portfolio Discounted Future Gross Cash Flows as at 30 June 2012*

Sensitivity Pre 2012
to carbon Discounted Post 2012 Total Discounted
price Future Discounted Future
CER Carbon Gross Cash Future Gross Gross Cash
price Flows Cash Flows Flows
-------------
EURm EURm EURm
------------- ------------ -----------------
-EUR 2 -0.3 18.9 18.6
----------- ------------ -------------- -----------------
-EUR 1 1.9 26.6 28.5
----------- ------------ -------------- -----------------
30 June
2012 CER
forward
curve 3.8 35.5 39.4
----------- ------------ -------------- -----------------
EUR 1 5.8 42.7 48.4
----------- ------------ -------------- -----------------
EUR 2 7.7 49.7 57.4
----------- ------------ -------------- -----------------
EUR 4 11.5 63.8 75.2
------------- ----------- ------------ -------------- -----------------

* see notes below for assumptions
Forward curve as at 30 June 2012:

Futures Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20
Contract
ECXprice
per CER EUR3.66 EUR3.96 EUR4.18 EUR4.40 EUR4.55 EUR4.63 EUR4.78 EUR4.92 EUR5.15

Since 30 June 2012, the forward curve has reduced and as at 31 August 2012 was as follows:

Futures Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20
Contract
ECXprice
per CER EUR2.80 EUR3.14 EUR3.35 EUR3.46 EUR3.49 EUR3.49 EUR3.56 EUR3.64 EUR3.84

Finally, our non-core UK Advisory business was sold in early 2012 for initial consideration of GBP3.25m (EUR3.8m) to allow the Company to focus on its core markets.

We were also pleased to welcome Jonathan Marren to the role of Chief Financial Officer shortly after the period end.

Outlook

Over the last half year the Company has laid the groundwork to further expand its clean energy business in each of its regions. Clean energy opportunities in North America, Asia and Africa are now the Company's core focus and we anticipate an expansion of our clean energy project portfolio.

In North America, Asia and Africa this utilizes two trends: the growth in regulatory incentives, feed-in tariffs and grants available; and the continuing reduction in clean tech technology costs. Camco is excellently positioned to benefit from these trends in each of its regions. Our technical expertise, project development prowess and established local experts have placed us in the lead in these markets.

Our existing Asian carbon portfolio will deliver value to shareholders as it matures over the coming years. In North America, we hold a leading position in that carbon market. We expect our North American presence to expand as opportunities grow in an active compliance market after initial auctioning of allowances commences later this year. New regional carbon markets in Australia, Africa and China, commencing shortly, will provide Camco with great opportunities to expand its carbon development business alongside its clean energy development business

[ch1ck] 05/9/2012 08:01

Bought in again yesterday the price is way too low, I am buying before the crowd realise this is no longer a pure carbon credit play.

The results for this year have written down a massive loss which means the next results will show a massive increase this will propell the price along with further news of completed prodjects and new orders.

[aishah] 21/8/2012 16:47

Camco Wins U.S. Grant to Repay Loan on Dung-to-Power Plant

[garth] 21/8/2012 11:30

That's twice recently they've released 'good news', been marked up and then fallen back..... That tells you something.

Still watching.

G.

[nw99] 21/8/2012 09:27

Just bought in again as well at 4.3

[rat attack] 21/8/2012 09:19

carbon credits are dead in the water at this time and unlikely to progress in next 3 years - dont get too carried away! How many more write downs to come?