Ecofin Water&powr Opportunities Share Discussion Threads

[praipus] 18/1/2008 09:54

ECWC NAV £8.174 according to the AIC, share price discount 1.3%, gearing 528.

[praipus] 18/1/2008 09:53

UK set for 15% renewables target
The European Union is expected to tell the UK that 15% of energy needs must be met from renewable sources by 2020.
The figure, currently about 2%, will include all energy used for heating and cooling buildings.

Experts say the target is challenging because heating and cooling are hard to achieve on a mass scale with renewable fuels, says BBC analyst Roger Harrabin.

The EU, which is trying to create a low-carbon economy in Europe, will announce its decision next week.

Tough but achievable

The target is expected to be met mainly through electricity generation.

Sources suggest the UK will need to get between 30% and 40% of its electricity from wind, wave and solar sources by 2020, which is up from 5%.


Story from BBC NEWS:


Published: 2008/01/18 08:05:41 GMT

© BBC MMVIII

[praipus] 17/1/2008 12:24

Watchdog seeks levy on £9bn electricity profits windfall
By Ed Crooks, Energy Editor

Published: January 16 2008 22:31 | Last updated: January 16 2008 22:31

A £9bn windfall profit for electricity companies over the next five years should be clawed back by the government to help people struggling with high fuel bills, the energy regulator has proposed.

Alistair Buchanan, chief executive of Ofgem, raised the plan in a meeting with Alistair Darling at the Treasury on Tuesday, which was called by the chancellor to discuss rising energy prices.

EDITOR'S CHOICE
Ofgem 'must cut greenhouse gases' - Sep-19Call for independent EU energy regulator - Sep-17Scotland up in arms over higher electricity charges - Aug-20The idea is likely to be welcomed by fuel poverty campaigners, but was received coolly by Mr Darling on Wednesday.

The generators' trade association described the proposal as "breathtaking", and industry warned that the plan could push up prices even further.

Energy companies can make windfall profits because the price of electricity rises to reflect the price of permits to emit carbon dioxide in the European Union's emissions trading scheme.

However, the generators are given most of those permits for free.

Ofgem estimates that the cost of permits accounts for about 17 per cent of the wholesale price of electricity.

Over phase two of the scheme, from 2008-12, the gains to generators are set to be £9bn, Ofgem has calculated.

In phase three of the scheme, for which the European Commission will set out proposals next week, generators are likely to have to buy their permits in auctions, preventing any windfall gains.

However, for phase two, Ofgem thinks that the government could find another way to claw back those profits.

Mr Buchanan said: "If this were something that Number 11 thought interesting to take further, we would be happy to work with them on it. They will know better than us whether this is do-able."

However, Mr Darling's aides said the chancellor did little more than "acknowledge" Ofgem's concerns and that the issue was "not really discussed".

Spain's parliament has recently voted for a "carbon windfall tax" to claw back excess profits.

But a second windfall tax on energy companies – following Labour's raid on utilities after the 1997 election – is seen in the Treasury as a step too far.

The Association of Electricity Producers said it was "breathtaking" that Ofgem had told the Treasury there were windfall gains that could be tapped, and warned that "retrospective" taxation "would send the damaging signal to investors in a vital UK industry".
Copyright The Financial Times Limited 2008

[praipus] 17/1/2008 10:16

ECWC NAV £8.399 according to the AIC, share price discount 4.0%, gearing 521.

[praipus] 16/1/2008 09:56

ECWC NAV £8.61 according to the AIC, share price discount 5.3%, gearing 515.

[praipus] 15/1/2008 10:46

ECWC NAV £9.001 according to the AIC, share price discount 8.5%, gearing 504.

[praipus] 14/1/2008 15:07

ECWC NAV £8.944 according to the AIC, share price discount 5.8%, gearing 506.

[praipus] 14/1/2008 15:05

Perhaps ECWO being well covered and ECWC being highly geared?

[clusium] 14/1/2008 12:30

Is there any reason why there could be an inverse relationship between ECWC and ECWO?! Seriously, though.

[praipus] 11/1/2008 14:23

Ecofin Water & Power Net Asset Value(s)

RNS Number:5967L
Ecofin Water & Power Opps PLC
11 January 2008

Ecofin Water & Power Opportunities plc

It is announced that at the close of business on 9 January 2008, the un-audited
Net Asset Values per share of the above investment trust company were:-

Income Shares: Net Asset Value: 96.96p per share (including undistributed
current period revenue)

Capital Shares: Net Asset Value: 906.17p per share

Ordinary Shares: Net Asset Value: 214.61p per share (after provision for a
performance fee of £6,877,100 in respect of the year ending 31 March 2008).

Gross Assets: £865,696,000

Loan Facility: £270,693,000

Net Assets: £595,003,000

NB: The Company's holding in Airtricity has been revalued with effect from 24
December, 2007.

Phoenix Administration Services Limited - Secretary

This information is provided by RNS
The company news service from the London Stock Exchange
END

So NAV excludes impact of SSE offer.

[praipus] 11/1/2008 09:49

ECWC NAV £9.21 according to the AIC, share price discount 8.3%, gearing 500.

[praipus] 10/1/2008 09:28

ECWC NAV £9.231 according to the AIC, share price discount 8.5%, gearing 500.

[praipus] 09/1/2008 20:28

Noticed Dexia reduce their ECWO holding from 15% to circa 12% any ideas why? Distressed selling elsewhere perhaps?

[praipus] 09/1/2008 09:03

ECWC NAV £9.148 accoroding to the AIC, share price discount 7.2%, gearing 502.

[praipus] 08/1/2008 18:04

My earlier calculation states the Airtricty Holding as 5.4% as stated in the the 2007 Annual report



The RNS says 5.04%.

Meanwhile Iberdrola Renovables march on and hats off to Ecofin for their consistent strategic and intelligent investment.

And as Jzd pointed out the share price discount remains thoroughly underserved.

[praipus] 08/1/2008 17:51

Ecofin Water & Power Stmt re Airtricity Holdings

RNS Number:3332L
Ecofin Water & Power Opps PLC
08 January 2008

ECOFIN WATER & POWER OPPORTUNITIES PLC

On 4 January 2008, Airtricity Holdings Limited ("Airtricity") announced that it
had reached a definitive agreement to be acquired by Scottish and Southern
Energy Plc ("SSE") for an equity value of approximately Euro1.1 billion, excluding
the proceeds which Airtricity realised from the recent sale of its North
American business unit to the German company E.ON. SSE's aggregate purchase
price for Airtricity, including the proceeds of the sale of Airtricity's North
American business unit, transaction costs and other adjustments, is
approximately Euro1.8 billion. In addition, SSE will assume liabilities of
approximately Euro375 million.

The Company owns 2,744,518 shares in Airtricity, equivalent to approximately
5.04% of Airtricity's outstanding share capital, which it purchased in August
2006 for Euro16.43 per share. Other funds and accounts managed by Ecofin Limited,
the Company's investment manager, own an additional 9.72% of Airtricity,
following the recent exercise of some outstanding share options.

The Company's investment in Airtricity is currently valued at a Directors'
valuation of Euro28.20 per share pursuant to a revaluation of Airtricity on 24
December 2007. The proceeds of the sale of Airtricity are expected to be
approximately Euro33 per share, subject to some closing adjustments. The
transaction is expected to close during the first quarter of 2008, following
receipt of regulatory approvals.

Phoenix Administration Services Limited - Secretary

8 January 2008

This information is provided by RNS
The company news service from the London Stock Exchange
END

[praipus] 08/1/2008 08:52

ECWC NAV £9.16 accoroding to the AIC, share price discount 6.7%, gearing 501.

[praipus] 07/1/2008 14:51

Thanks to Jzd for kindly pointing out my delusions specifically in and prior to 1758. In hope of achieving accuracy I offer the following.

SSE offer €1,826m.

For how this is calculated please read the section entitled "Enterprise Value and Consideration" from the SSE Acquisition RNS below



Funds managed by Ecofin Limited owned 16.1% of Airtricity according to the Interim statement for six month to September, 2007.

16.1% * €1,826m = €293.986m

€293,986,000 converts to £ 218,886,158

However Ecofin Power & Water Opportunities PLC own 5.4% according to page 7 of the Annual Report for 2007.

5.4% * €98,604,000 = £73,601,552


Net assets according to RNS


Net asset value £591,845,000

Value of Airtricity apportioned to Ecofin Power and Water Opportunities PLC


£56,845,690

So £73,601,552 - £56,845,690 = £16,755,862 increase in Airtricity holding.

New Net asset value £591,845,000 + £16,755,862 (2.83%) = £608,600,862

Assuming loan facility remains at circa 40% gross assets would become £1,014,334,770

Good news for all ECWC's holders.

Feel free to point out any errors or emissions. All IMHO and DYOR etc.

[praipus] 07/1/2008 14:51

Each class of share has its own attraction.

[clusium] 07/1/2008 13:09

But ECWO is also experiencing bigger discounting and, though very steady, seems impervious to good news. Safe, though.

[jzd] 07/1/2008 12:23

Thanks for the calculation Priapus. The only query I have is the 98,604 figure which is € rather than £ I think.
It certainly is good news for ECWC holders.
It amazes me to see ECWC still with big discounts when their performance has been so outstanding. Presumably it reflect the risk of the gearing.

[praipus] 07/1/2008 11:43

Jzd

SSE offer €1,826m.

For how this is calculated please read the section entitled "Enterprise Value and Consideration" from the SSE Acquisition RNS below



Funds managed by Ecofin Limited owned 16.1% of Airtricity according to the Interim statement for six month to September, 2007.

16.1% * €1,826m = €293.986m

€293,986,000 converts to £ 218,886,158

However Ecofin Power & Water Opportunities PLC own 5.4% according to page 7 of the Annual Report for 2007.

£98,604,000


Net assets according to RNS


Net asset value £591,845,000

Value of Airtricity apportioned to Ecofin Power and Water Opportunities PLC


£56,845,690

So £98,604,000 - £56,845,690 = £41,758,310 increase in Airtricity holding.

New Net asset value £591,845,000 + £41,758,310 (6.79%) = £633,603,310

Assuming loan facility remains at circa 40% gross assets would become £1,056,005,000

Good news for all ECWC's holders.

Feel free to tear this to pieces if I've made any errors or emissions. All IMHO and DYOR etc.

[praipus] 07/1/2008 11:32

jzd
Thank you for asking. After going through this a bit more carefully it looks like the overall (i.e. ECWO + ECW + ECWC) NAV increase is likely to be nearer 6.79% IMHO, will post my workings shortly.

[jzd] 07/1/2008 10:15

Praipus
Thanks for all your v useful posts on ECWC. Would you mind showing us how you work out that figure of 19% NAV increase. (preferably distinguishing between published figures and assumptions/estimations)

[praipus] 07/1/2008 10:00

ECWC NAV £9.068 accoroding to the AIC, share price discount 8.5%, gearing 504.

Excludes the €1,080m offer for Airtricity from SSE. Ecofin and its associated companies own approx 16.1% of Airtricty. Subject to Irish regulatory approval and any further counter offer, at the current level I estimate the NAV would increase by over 19%.