Share Name Share Symbol Market Type Share ISIN Share Description
Ecofin Water&powr Opportunities LSE:ECWC London Ordinary Share GB0031326431 CAP SHS 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 460.00p 0.00p 0.00p - - - 0.00 05:00:10
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Nonequity Investment Instruments - - - - 88.70

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Date Time Title Posts
13/11/200915:25Proposed capital increase - good news strong buy IMHO2,079.00
30/11/200412:35NAV Ј2.05* shares 99p!!!1.00
30/11/200412:28Merger mania in water world - at a 50% discount to NAV6.00
21/11/200421:52NAV Ј1.61 shares 75p !80.00
08/10/200411:06NAV over Ј1.04 shares only 52p strong buy50.00

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DateSubject
27/7/2008
12:23
spangle93: Is this too simplistic? If I convert to ECWO at e.g. 4:1, based on the NAV's.... Since discount is around 16% for ECWC and 11% for ECWO, I therefore get some uplift on the deal compared to 4:1 on share price. If I get 4 "O" shares for each "C" share, then based on closing price on friday, the uplift is about 6.5%. ECWO is less volatile than ECWC, and pays a dividend. If I wait til March 2009, I get a similar offer to convert at a ratio of the ANAV's, whatever it may be at the time, or to take cash equivalent to 97.5% of the ANAV at the time, which would be a considerable uplift based on the large discount to NAV. Of course, if there is major trauma in the markets before then, the drop in ECWC is (a) likely to be greater than ECWO and (b) may offset the potential greater uplift. Of course, markets could in fact recover, especially if this sector is seen as defensive. So if we assume that the market stays about this sort of level, it's likely that holding the capital shares til March rather than converting them now would be a better option. Is that how others see the decision we're asked to make in the next couple of days?
03/7/2008
15:20
glynnef: As the end of life of ECW and ECWC is now less than 9 months away, and there is a conversion option for ECWC due this month, these events have to start having an impact on share prices. ECWC trades today at about 20% discount to reported NAV, but ECWO trades at only 15% discount. So a conversion offer this month should narrow the difference between these discounts. As far as I can see, the attributable NAV for ECWC on conversion is virtually the same now as the frequently reported NAV. More interestingly, in April 09 the company is to offer to buy back ECWC shares at 97.5% of attributable NAV - a much higher price than the current share price. At current valuations, if all the ECWC holders want a cash repayment in April 09, the company would have to find about £178M to repay them as well as the ECW holders. Where would they get it ? But all in all, ECWC looks cheap to me. I hold ECWC and ECW. regards, G.
25/1/2008
10:31
praipus: ECWC NAV £7.299, share price at 2% discount and gearing 560, according to the AIC. Cher Price, shrewd "market timing" well done on buying back in now. See what you mean about Iberdrola and the others. ECWC and MNE are quite different. The quickest way to see the difference is for you to look at a chart and compare the share price movement over say 5 years. They do have one or two common holdings. MNE seems to be in more risky new technology ventures not necessarily cash generating or asset rich so be very cautious. Also they seem to be making their money by raising new investor capital rather than looking for or generating shareholder value. Ecofin seem good at engineering mutually beneficial holdings that give the target company access to cheaper capital and asset class know how and as a result significantly improve shareholder value. Great examples include Bristol Water, Northumbrian Water, Sechillienne-Sidec and Airtricity. Who knows if Ecofin's ECWC performance will continue, common sence says it will fluctuate subject to deal flow, but they have IMHO an above average chance of compounding ahead of the market because they do more than buy and hold. Not many investment trusts even go to the AGM meetings let alone try and influence shareholder value. Needless to say my MNE holding is less than 1% of my portfolio and ECWC closer to 85% and increasing whenever there is cash to spare. As for market volatility that will always be present and is perhaps to the long term investors advantage as you have just proved.
03/1/2008
09:54
linhur: Although Ecofin say that the Airtricity shareholding has been revalued, there has been no indication of the revised figure.I would have thought there should have been a bigger increase in the NAV. The jump in the ECWC share price yesterday has presumably reflected the increase. regards Linhur
17/7/2007
09:22
praipus: valtee, sometime ago the discount between ECWC share price and NAV was in excess of 20%. To address this the company put in place some tender offers. These are where the company offers to buy back up to 50% of any ECWC shareholders holding at a specific value. The Ecofin website and official documentation explain this alot better than I can. The whole idea is to increase the ECWC share price in relation to the NAV and thus reduce the capital share discount .
02/4/2007
09:30
praipus: ECWC NAV £717.49 according to the Splitsonline, share price share price offering 13% discount, gearing 508.
10/1/2006
14:36
praipus: Monthly update RNS Number:7201W Ecofin Water & Power Opps PLC 10 January 2006 Ecofin Water & Power Opportunities Plc - December 2005 Review Note: The net assets, NAVs per share and shareholders' funds shown below and the performance figures relating to net assets and NAVs have been prepared valuing the Company's investment portfolio on the basis of mid-prices. From 1st January, 2006, the Company's net assets, NAVs per share and shareholders' funds released on a weekly basis have been calculated on the basis of bid prices to conform with International Financial Reporting Standards (IFRS) and the recommendation of the Association of Investment Trust Companies (AITC). As at Performance1 31 December, 2005 1 month 3 months 12 months Since launch2 Net Assets #252,019,000 +4.4% +6.7% +41.7% +92.7% Income Shares Income Share Price 107.50p 0.2% -2.3% +3.1% +7.5% Income Share NAV3 86.30p +0.5% +4.2% +6.7% +32.8% Premium/ (Discount) 24.6% Dividend Yield4 7.4% Capital Shares Capital Share Price 283.50p +11.8% +15.0% +125.4% +183.5% Capital Share NAV 395.46p 5.4% +10.0% +70.0% +150.3% Premium/ (Discount) (28.3)% Ordinary Shares5 Ordinary Share Price 119.75p 3.0% -0.6% - +19.8% Ordinary Share NAV 121.83p +4.4% +5.5% - +16.1% Premium/ (Discount) (1.7)% Dividend Yield6 4.2% 1 Adjusted for a #50 million capital increase on 29th June, 2005 2 Based on initial share prices of 100p and initial NAVs net of expenses associated with the organisation of, and placement of shares in, the Company 3 Including undistributed current period revenue 4 Total dividends paid over last 12 months / share price 5 Issued on 29 June, 2005 (6) Dividend for three months to 30 September, 2005, annualised / share price Capital Structure as at 31st December, 2005 Gross Assets less Current Liabilities # 414,507,000 Bank debt # 162,488,000 Shareholders' Funds (Income Shares) # 27,981,000 Shareholders' Funds (Capital Shares) 76,253,000 Shareholders' Funds (Ordinary Shares) 147,785,000 252,019,000 # 414,507,000 Effective gearing on Ordinary Shares 2.80x Bank debt as % of Gross Assets 39.2% Sector Analysis % of portfolio Country Analysis % of portfolio Electricity 48.5 United Kingdom 37.8 Water 28.0 Other Europe 35.4 Gas 10.7 France 19.6 Multi-utility 6.6 Italy 7.5 Other 6.2 Germany 4.1 Spain 1.6 100.0 % Ireland 2.3 Finland 0.3 United States 17.7 Other 9.1 100.0 % Top Ten Investments % of portfolio Sector Country Sechilienne-Sidec 14.1 Electricity France Bristol Water 7.4 Water United Kingdom Pennon 6.7 Water United Kingdom United Utilities 4.9 Water United Kingdom Northumbrian Water 3.9 Water United Kingdom Enel 3.2 Electricity Italy Centrica 3.0 Gas United Kingdom AWG 2.7 Water United Kingdom Williams Companies 2.7 Gas USA Terna 2.6 Electricity Italy 51.2 Review of December December was another strong month for European stock markets while the gains in the US were more modest. Your Company's net assets rose by 4.4% in December. In comparison, the FTSE All-Share index gained 3.9% and the Dow Jones Euro Stoxx index and the US S&P 500 index rose 4.6% and 0.1%, respectively, in sterling terms, in December. In the utility sector, the FTSE Utilities index gained 5.2% while the Dow Jones Euro Utility index and the US S&P 500 Utilities index rose by 5.3% and 1.0%, respectively, in sterling terms. In the twelve months to 31st December, 2005, your Company's net assets grew by 41.7% on an unaudited basis. Your Company's current fiscal year will end on 31st March, 2006. The UK utilities sector ended the year with strong performance from both the water and energy stocks. At the beginning of the month the UK water companies reported interim results which were generally ahead of market expectations. Strong results from all the companies were driven by very good operational performance from their core regulated businesses. Pennon surprised on the up side by announcing its intention to return # 200 million of value to shareholders through a combination of a B share scheme (#145 million, equivalent to 110p per share) and a share buy back programme (#55 million, equivalent to 4% of the issued share capital). Other water companies with low gearing levels, in particular Kelda and Severn Trent, are expected to come under pressure to do the same. Press reports that Veolia has put its 25% stake in the UK water company Southern Water up for sale suggest more corporate activity in the sector. Veolia took the stake in Southern four years ago with a view to acquiring the whole company but this was subsequently blocked by the UK Competition Commission. The continued strength in the oil price led the UK government to announce an increase in the tax on UK energy producers which will have a small impact on Centrica's upstream profits. The supplementary corporation tax increased from 10% to 20% taking the total corporation tax to 50%. This was not a surprise as it had been well flagged in the press. Centrica's year end trading statement later in the month confirmed that 2005 earnings would be in line with consensus expectations and customer losses would be lower than expectations. There was also confirmation of the management's previous commitment to a 25% increase in the company's dividend. British Energy announced interim results which showed a strong financial performance driven by high power prices. On the Continent, the rally in European utilities which began in late October continued through to the end of the year, driven mainly by rising forward power prices and the perception that utilities continue to offer an attractive mix of earnings growth, predictable cash flows and solid balance sheets. Early in the month, E.ON negotiated an agreement to sell its remaining 43% stake in chemical company Degussa to RAG, enabling it to pay a special dividend of Euro4.25 per share in May 2006. This, combined with a 12% increase in one-year forward electricity prices in Germany, drove the shares of E.ON and RWE to all-time highs. News flow was less supportive in France, where shares in Gaz de France drifted throughout December as the French government appeared reluctant to put up residential gas prices on 1st January. The planned 7.5% increase was in compliance with the public service contract signed in June between GDF and the government, which ensures that higher gas purchase costs are passed through to end-users. After a roundtable discussion in mid-December, Gaz de France announced that the January increase would be postponed while a committee of independent experts was appointed to propose a new tariff setting mechanism to be implemented from March 2006. Separately, the French government approved new regulated tariffs for GDF's gas distribution and LNG businesses for 2006-07. Allowed returns were reduced by 50bp to 7.25% p.a. pre-tax real, but they remain adequate in an environment of low interest rates. This cut was in line with expectations and helped the shares rally towards the end of the year. In Spain, the government approved a 4.48% increase in electricity prices for 2006 and recognised the utilities' right to fully recover the 2005 tariff deficit, which is estimated to have reached Euro3.0-3.5 billion. Additionally, the government has committed to conduct an in-depth review of the tariff-setting mechanism by 1st July 2006. Approval of Gas Natural's bid for Endesa remains on track following the regulator's favourable ruling (albeit subject to a set of conditions) and despite the Spanish Anti-Trust Court's recommendation that the acquisition not be allowed. This recommendation is non-binding and the government has one month to make its final ruling, which is widely expected to be supportive of the transaction. Worries of political intervention continued to dominate news flow in Italy as last-minute amendments were made to the 2006 Budget Law, including the abolition of deferred tax benefits enjoyed by regulated utility businesses. The Budget Law also postponed by one year to December 2008 the deadline by which ENI is required to sell down from 50% to 20% its interest in Snam Rete Gas. Finally, Prime Minister Berlusconi announced that the government had no intention of further selling down its holding in Enel before the elections on 9th April. In the United States, 2005 ended with yet another utility merger announcement and the bankruptcy of a prominent independent power producer. The consolidation of the sector continued as FPL Group and Constellation Energy announced plans to merge. This is the fourth major US utility merger to be announced in 2005 following those between Exelon and PCG&E, MidAmerican (a division of Berkshire Hathaway) and PacifiCorp (a subsidiary of Scottish Power) and Duke Energy and Cinergy . These mergers have a common theme in that each company has a large component of unregulated earnings. This is important given that regulators can negatively impact a proposed merger's economics by demanding that much of the synergy savings be passed on to customers rather than to shareholders. Regulators have no such power over savings achieved by merging companies' unregulated businesses. The surge in M&A activity has been accelerated by the repeal in August 2005 of the Public Utility Holding Company Act (PUHCA) of 1935, which had been a major deterrent to utility mergers. The FPL-Constellation combination appears to make strategic sense. Constellation has focused on building load-serving services through its Constellation New Energy division which is a non-regulated energy provider. Conversely, FPL maintains a large non-regulated generation fleet, which is complimentary to Constellation's delivery business. The other major event during December was Calpine's filing for Chapter 11 bankruptcy protection. Calpine had been teetering on the brink for some time given the collapse of generating asset values and its $18 billion debt burden and cash flow constraints. Judging by the experience of NRG and Mirant in bankruptcy, we would expect Calpine to emerge from bankruptcy in roughly 18 months as a viable and much stronger entity. -------------------------- This information is provided by RNS The company news service from the London Stock Exchange END NAVILFEVLVIILIR
13/10/2005
16:24
praipus: Monthly Update RNS Number:6523S Ecofin Water & Power Opps PLC 13 October 2005 Ecofin Water & Power Opportunities Plc - September 2005 Review As at Performance(1) 30th September, 2005 1 month 3 months 12 months Since launch(2) Net Assets #236,293,000 +5.5% +8.9% +63.4% +80.7% Income Shares Income Share Price 110.00p +2.1% +2.1% +12.2% +10.0% Income Share NAV(3) 82.85p +0.5% -0.9% +3.9% +27.5% Premium/ (Discount) 32.8% Dividend Yield(4) 7.3% Capital Shares Capital Share Price 246.50p +4.7% +19.4% +232.0% +146.5% Capital Share NAV(3) 359.43p +9.3% +13.1% +123.0% +127.5% Premium/ (Discount) (31.6)% Ordinary Shares(5) Ordinary Share Price 121.25p +12.4% +21.3% Ordinary Share NAV 115.52p +4.7% +8.9% Premium/ (Discount) 5.0% Dividend Yield(6) (1) Adjusted for a #50 million capital increase on 29th June, 2005 (2) Based on initial share prices of 100p and initial NAVs net of expenses associated with the organisation of, and placement of shares in, the Company (3) Including undistributed current period revenue (4) Share price / total dividends paid over last 12 months (5) Issued on 29 June, 2005 (6) First dividend to be paid in November 2005 Capital Structure as at 30th September, 2005 Gross Assets less Current Liabilities # 328,288,000 Bank debt 91,995,000 Shareholders' Funds (Income Shares) 26,863,000 Shareholders' Funds (Capital Shares) 69,306,000 Shareholders' Funds (Ordinary Shares) 140,124,000 236,293,000 # 328,288,000 Effective gearing on Ordinary Shares 2.34x Bank debt as % of Gross Assets 28.0% Sector Analysis % of portfolio Country Analysis % of portfolio Electricity 49.8 United Kingdom 42.3 Water 29.2 Other Europe 34.6 Gas 9.0 France 21.7 Multi-utility 7.3 Italy 5.4 Other 4.7 Germany 4.2 Spain 1.6 100.0 % Greece 0.9 Ireland 0.8 United States 17.9 Other 5.2 100.0 % Top Ten Investments % of portfolio Sector Country Sechilienne-Sidec 14.4 Electricity France Bristol Water 7.0 Water United Kingdom British Energy 5.5 Electricity United Kingdom East Surrey 5.4 Water United Kingdom Pennon Group 5.3 Water United Kingdom Northumbrian Water 5.0 Water United Kingdom E.ON 3.6 Multi-utility Germany Williams 3.5 Gas United States Suez 3.1 Multi-utility France AWG 3.0 Water United Kingdom 55.8 Review of September In September, your Company's net assets grew by 5.5% compared to an increase of 3.3% in the FTSE All-Share index and increases of 4.5% and 1.7%, respectively, in the Dow Jones Euro Stoxx index of Euro-denominated markets and the US S&P 500 index, both in sterling terms. In the utility sector, the FTSE Utilities index rose by 4.0% while the Dow Jones Euro Utility index rose 3.8% and the S&P 500 Utilities index rose 4.2%. In the UK, bid speculation, trading statements and regulatory announcements all contributed to September's utility news flow. High energy prices and low bond yields continued to favour the power sector. Early in the month, the German utility E.ON confirmed that it was considering a possible cash offer for Scottish Power. Also in the energy sector, Constellation Energy of the US and the hedge fund Perry Capital were reported to have made a bid for the Drax coal fired power station which is due for a public flotation at the end of the year. The estimated offer of #1.9bn would value Drax at #475/MW. The fact that Drax is both the largest and youngest coal-fired plant in the UK makes this a very attractive asset now that margins for coal generation have risen with the rise in power prices. In September, Ofgem published its initial proposal for the electricity transmission price review for 2006/07 and confirmed that they intend to use the approach used in the recent distribution price control review. The initial proposals are in line with our expectations allowing the rate of return to stay at 6.25% pre-tax and the recovery of #320 million of overspend out of a possible #440 million. However, the initial proposals are the start of a period of negotiation and there is scope for National Grid to press for higher returns and more capex recovery ahead of the final proposals which are expected in November 2005. British Energy - the only UK utility Company to announce earnings this month- reported the first set of Q1 numbers since the company's re-listing in January this year. Overall, the company has delivered a very satisfactory performance helped by favourable power market conditions. In continental Europe, the utility sector saw a surprise burst of M&A activity. In Spain, Gas Natural launched a bid for Endesa at the start of the month valuing Endesa at Euro22.3 billion, equivalent to a 15% premium to its closing price. The offer is to be financed with cash (35%) and shares (65%). Although it has strong political backing, the proposed transaction will come under scrutiny by the Spanish regulatory and anti-trust authorities, and also possibly the European Commission. Following this announcement, shares in the Spanish utility Union Fenosa experienced huge volatility as Santander, its largest shareholder, auctioned off its 22% stake in the company to the highest bidder, the Spanish construction company ACS. At Euro33 per Fenosa share, the transaction is expensive but it does not benefit minorities, since ACS is not required to-and has confirmed it has no intention to-extend its offer to other shareholders. The uncertain outcome of the German elections held on 18 September also had a significant impact on the sector, as E.ON and RWE, the two largest European utilities by free float, declined by nearly 5% over the following week. Their share performance is likely to remain lacklustre until a new government is formed and clarifies its stance on the future of nuclear power in Germany. The French utilities published first half earnings during September. Gaz de France's maiden results since it was listed were particularly well-received. The company was able to offset weak supply margins by releasing gas from storage during the February 2005 cold snap. Profits from upstream gas production were bolstered by high wholesale gas prices, and the regulated activities performed in line with expectations. First half earnings from Veolia were also strong, driven by the company's on-going cost cutting programme. Suez's results were overshadowed by the launch of a Euro2.4bn rights issue. This had been announced when Suez bid for Electrabel, but was expected to take place later in the year. Suez's largest shareholders have backed this capital increase which has been positive for the share price. In Italy, Snam Rete Gas surprised the market by announcing that it would return Euro2.7 billion to shareholders through a Euro1/share special dividend (to be paid on 24 November) and an Euro800 million share buy-back programme. Given a lower allowed regulated return starting in October and the absence of acquisition opportunities that would have allowed Snam to gear up, management is seeking to improve the efficiency of the company's balance sheet by lowering its cost of capital. In the US, stormy weather and stormy politics set the tone in the utility sector in September. Yet another hurricane ripped through the Gulf of Mexico during the month. This one, Rita, caused less onshore damage than Katrina, but significantly more to offshore oil and gas platforms and pipelines. This event pushed natural gas prices from an already lofty $11.75 per Mcf in the first week of the month to $14.00 by month's end. As we have noted in the past, gas prices tend to set power prices in most regions of the US. Consequently, shares of utilities that have large low cost nuclear and coal generation fleets tended to outperform the average. Another storm, this one political in nature, hit Illinois based utilities and generators. Governor Blagojevich of Illinois is up for re-election in November 2006 and energy costs are expected to skyrocket for heating this winter. This, coupled with the fact that, by law, market based electricity rates will be charged in Illinois starting in 2007-with futures prices indicating that consumers' energy bills will then be significantly higher than they are today- makes it certain that energy and power will by major issues in the Illinois Governor's race. Seeing the writing on the wall, Governor Blagojevich has taken issue with market structure plans put forth by the local utilities, most notably ComEd of Chicago, owned by Exelon, despite the fact that the same structure (multi-year power sale auctions) already works well in New Jersey. In response, the Governor forced the head of the Illinois Commerce Commission to step down for supporting the utilities' plans and replaced him with the head of the leading consumer watchdog group. While we are confident of a positive resolution in the longer term, we are braced for turbulence in the Illinois market in the near future. The Illinois situation is the most obvious but not the only indication that strong energy commodity prices may be too much of a good thing. Because energy costs to consumers have risen so rapidly, political and regulatory risk in some regions of the US is on the rise. Expectations for strong 2H05 earnings should help somewhat to mitigate this rising risk profile. This information is provided by RNS The company news service from the London Stock Exchange END MSCILFSRIALVLIE
08/8/2005
11:43
praipus: Monthly Update RNS Number:8455P Ecofin Water & Power Opps PLC 08 August 2005 Ecofin Water & Power Opportunities Plc - July 2005 Review As at Performance1 31st July 2005 1 month 3 months 12 months Since launch2 Assets Gross Assets #288,375,569 +1.1% +8.2% +39.6% +39.5% Bank Debt #68,955,838 Net Assets #219,419,730 +1.1% +10.7% +64.2% +67.8% Est. Yield on Portfolio 4.5% Income Shares Income Share Price 108.25p +0.5% +0.7% +20.3% +8.3% Income Share NAV 84.04p +0.5% +2.9% +8.4% +29.3% Premium/ (Discount) 28.8% Dividend Yield3 7.4% Ordinary Shares4 Ordinary Share Price 103.50p +1.7% +3.5% Ordinary Share NAV 107.11p +1.0% +2.1% Premium/ (Discount) (3.4)% Dividend Yield5 - Capital Shares Capital Share Price 231.50p +12.1% +28.3% +256.2% +131.5% Capital Share NAV 322.85p +1.6% +17.0% +128.8% +104.3% Premium/ (Discount) (28.3)% 1 Adjusted for a #50 million capital increase on 29th June, 2005. 2 Based on an initial share price of 100p and the NAV on 27 February, 2002, net of initial expenses associated with the organisation of, and placement of shares in, the Company. 3 Share price / total dividends paid over last 12 months. 4 Issued on 29 June, 2005 5 First dividend to be paid in November 2005 Sector Analysis % of gross Country Analysis % of gross assets assets Electricity 53.1 United Kingdom 40.5 Water 27.3 Other Europe 36.4 Gas 7.1 France 20.9 Multi-utility 7.9 Spain 1.7 Other 5.1 Germany 4.9 Net Current Assets -0.5 Italy 6.8 100.0 % Greece 1.2 Ireland 0.9 United States 18.6 Other 5.0 Net Current Assets -0.5 100.0 % Top Ten Investments % of gross assets Sector Country Sechilienne-Sidec 13.9 Electricity France Bristol Water 8.0 Water United Kingdom East Surrey 6.5 Water United Kingdom Northumbrian Water 5.7 Water United Kingdom British Energy 5.7 Electricity United Kingdom E.ON 4.2 Multi-utility Germany Poweo 3.5 Electricity France Enel 3.5 Electricity Italy Williams 3.5 Gas United States Dominion 2.7 Electricity United States 57.2 Review of July In July, your Company's gross assets rose by 1.1% as utility stocks under-performed the broader equity markets. In July, the FTSE All Share index rose by 3.3% while the Dow Jones Euro Stoxx index of Euro-denominated markets and the U.S. S&P 500 index rose by 6.9% and 5.8%, respectively, in sterling terms. In the utility sector, the FTSE Utilities index fell by 0.1% while the Dow Jones Euro Utilities index and the U.S. S& P 500 Utilities index rose by 3.7% and 4.2%, respectively, in sterling terms. Energy prices continued to be a dominant theme in Europe in July with gas and wholesale electricity prices volatile over the month. UK and EU gas prices have now risen by more than 60% and 50%, respectively, since the beginning of 2005. Rising energy prices have contributed to sharp rises in wholesale electricity prices across Europe. Forward wholesale electricity prices have now risen by approximately 70% and 30% in the UK and Germany, respectively, this year to date. Some utilities, notably those companies which are long low cost generation, benefit from these developments more than others, such as retail distributors which are short generation. In the UK, the water industry regulator Philip Fletcher, Director General of OFWAT, gave a City Briefing for analysts and investors which was well-received. The regulator said that the fact that the market capitalisations of water companies were now at a premium to their regulated asset values was not of concern as the system was designed to provide incentives for companies to out-perform their regulatory targets. He confirmed that if these premiums continued to 2009, it would not necessarily result in a tougher price review. He also said that OFWAT had no problem with water companies taking advantage of the current low interest rate environment to raise debt at a lower cost than OFWAT's assumed cost of debt of 7.2%. Elsewhere in the UK, Terra Firma's bid for East Surrey was once again postponed as East Surrey continued its discussions with the Northern Ireland regulator about the tariffs East Surrey's Phoenix gas subsidiary will be allowed to charge. 31st August is the final deadline for Terra Firma either to proceed with its bid or to withdraw it if it can persuade the Takeover Panel that there has been a material change in the circumstances surrounding the bid. British Energy reported its results for its fiscal year ended 31st March, 2005, which were in line with expectations, and Scottish Power's Extraordinary General Meeting approved the sale of the company's PacifiCorp subsidiary to the US Mid America Energy. In Continental Europe, most of the news in the utility sector in July was of a regulatory or political nature against a backdrop of rising energy and power prices. In Germany, an election was announced for 18th September which most observers believe will lead to a change of government. If elected, the opposition CDU party is likely to extend the life of Germany's nuclear power stations which would be positive for E.On and RWE. In Spain, the Government published its long-awaited white paper on regulation of the electric power industry. Not surprisingly, the white paper's principal concern is the level of concentration and lack of competition in the generating industry. It calls for, among other things, divestments of some generating plants, caps on market share, full liberalisation of retail tariffs and changes in the recovery mechanism for stranded costs. The white paper is a non-binding document and the Government has promised a long period of consultation before implementing any reforms. In the U.S., the positive backdrop for utility stocks continued in July. The relatively benign interest rate environment was buoyed by positive statements from Federal Reserve Chairman Greenspan in his semi-annual testimony to Congress in mid-July. Higher levels of economic activity and very hot weather over much of the country boosted the demand for electric power to record levels in July. Reporting of second quarter earnings began in earnest in the second half of the month with most utilities reporting strong results and benefiting from relatively favourable year-on-year weather comparisons. Consensus earnings estimates for the sector edged higher following upbeat remarks by many utility managements. Diversified utility companies with a favourable exposure to high commodity prices-through natural gas production, low cost nuclear generation or merchant power generation-outperformed the sector average as did mid-cap stocks considered possible acquisition targets. A new energy bill was finally passed by Congress and sent to President Bush for signing which is a foregone conclusion. Among other things, the bill will repeal the Public Utility Holding Company Act (PUHCA)-long considered an impediment to merger activity and consolidation in the U.S. power industry-which will usher in a new era for the electric power industry in the U.S. The bill also provides incentives for the nuclear power industry, for investment in new transmission lines and for investment in clean coal technologies. It also gives new powers to the Federal Energy Regulatory Commission (FERC). In July, your Company made a new, substantial investment in Sechilienne-Sidec SA, a French specialist renewable power company which operates power plants in Guadeloupe and Martinique in the Caribbean and Reunion and Mauritius in the Indian Ocean and has approximately 10% of the installed wind farm capacity in France. Sechilienne's island power plants burn bogasse, the residue of sugar cane production, to produce steam and power. The demand for power is forecast to grow rapidly in these countries and Sechilienne has an ambitious capital investment programme. The Company purchased 13.2% of Sechilienne, whose shares are quoted on the junior market in Paris, from a subsidiary of the Spanish utility Endesa for a consideration equivalent to approximately # 40 million which represented a discount of approximately 10% to the market price. Another Ecofin-managed fund, the Ecofin Global Utilities Hedge Fund, purchased a 6.7% stake in Sechilienne bringing the two funds' total interest in Sechilienne to 19.9%. This information is provided by RNS The company news service from the London Stock Exchange END MSCILFFFTEITIIE
06/11/2004
21:56
praipus: Hi Clusium, Gross assets are approximately £192 million Bank debt is approximately £68 million Today the Income ECW shares have an asset value of approximately £49 million The RNS says the ECWC have a NAV of £2.00 or £71 million approximately. Now today Income shares are entitle to circa 78p (or whatever the NAV is on the RNS) and all the income. This entitlement is recalculated daily to reach a maximum on winding up of £1.00 assuming all goes to plan. There are 70,000,000 Income shares in issue so the fund will on winding up owe £70 million to the income share holders assuming they want the cash and do not want to enjoy a further run for their money. Providing the fund isnt wound up early for any reason (fairly unlikely). On winding up the remainder of the funds assets get paid to the ECWC capital share holders, so using todays values assuming no growth in assets: £192 million less £70 million less £68 million debt leaves approximately £54 million divided by 35 million capital shares = £1.54 per share! The £2.05 is not wrong its present value rather than future value. Please download the annual report and study the section on capital structure. Lastly these are a storming buy and give geared exposure to an asset rich and mostly extremely undervalued utility sector. The only other trust in the sector is Utilico and they trade near their present NAV even with a bucket load of debt and ZDP's. So it seems reasonable to me that the ECWC share price could correct to a similar level or at least keep tracking the growing NAV (approx 44% since October 02) then by 2009 who knows what the NAV could be. The ECWC share price has risen around 25% since the begining of October! IMHO an ECWC share price between £1.50 and £2.05 could be easily justified even without water industry consolidation. Hope this helps. Praipus
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