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Real-Time news about Econergy Intl (London Stock Exchange): 0 recent articles
|david77: I'll wait and see if any better offer emerges but may take the cash alternative if the TRE share price is no higher than it closed on Friday (133/133.5). There are lots of bargains around which I would prefer to buy.|
|praipus: Tchenguiz considers taking Econergy private
By Fiona Harvey, Environment Correspondent
Published: April 11 2008 04:18 | Last updated: April 11 2008 04:18
Shares in Econergy International, the carbon trading company, surged 23 per cent on Thursday on indications from Vincent Tchenguiz, its leading shareholder, that he was considering taking the company private.
But Econergy, which invests in power plants mostly in developing countries to gain carbon credits, said it had also received other indications of interest.
Mr Tchenguiz, whose family trust owns 18.3 per cent of Econergy, said: "The trust has held a significant investment in Econergy since it was listed on Aim in 2006.
"The trust has a high regard for the board, management and employees of Econergy; is supportive of the company's strategy and believes in its long-term potential. However, we believe that this potential can best be realised in the private sector."
Consensus Business Group, Mr Tchenguiz's vehicle, could form a new company to take over Econergy or cherrypick certain assets of the carbon trading company. Econergy also did not rule out a sale of its shares "at a premium".
The company said discussions were at an "early stage".
Shares in Econergy have fared badly in the past year because of problems financing its carbon credit projects. Other carbon traders, such as EcoSecurities, have also suffered share price falls because of difficulties in gaining credits, and AgCert was forced to de-list from Aim after failing to generate enough credits to meet its contracts.
Dresdner Kleinwort rated the company "buy" on Thursday and estimated the bid floor for Econergy at 60p to 65p a share, saying: "We believe there is a strong rationale for a deal to be done." It said European power utilities were possible bidders. The shares closed up 5½p at 29p.
Other possible bidders are thought to be investment banks or private equity groups, which have been showing increasing interest in carbon trading.
Copyright The Financial Times Limited 2008|
|gdp2: 'Gus Hochschild, director of research at Dawnday Day Corporate Broking, estimated the company's power projects to be worth £116 million if they come to fruition and said the current share price was "absurdly low".
Lets hope the board are being advised in the same way and hold out for a 90p plus offer. Ideally, IMO, they would sell say a 15% stake in the company from a new issue to one of the parties looking at the company to provide working capital through 2010 when the shares should be worth much more.
I am not completely opposed to a merger with Trading Emissions as I believe the businesses would combine well, Trading Emissions cash pile I believe acting as boost to the number of projects ECG can take on, but on much better terms than their first derisory offer.|
|david77: I added a few yesterday - down again today :-(
I hope I am wrong but this does remind my of Biofuels BFC. I believed the story and kept buying as the share price fell. Fortunately there were bigger idiots than me around so I was able to sell before the shares were suspended :-(
BFC failed 'cos they were squeezed between two commodities - the price of palm oil shipped from the Far East and the price of oil that their product replaced. Seemed a good idea at the time, but the price of palm oil and shipping rocketted.
ECG have some wind turbines both installed and on order. They are getting more valuable all the time. Most of the countries in South America seem to be going great guns so their electricity demands should increase. ECG seem to be well placed to benefit from the world-wide increase in energy costs - so why does the share price keep falling?
We had a trading statement in the middle of Jan - does that mean that the next will be in the middle of July?|
|gdp2: bobdouthwaite - 19 Dec'07 - 16:50 - 100 of 108
I'm still waiting for the certificate for shares I bought six months ago - 'shortage of stock' says the broker. So the recent drop in share price is hard to understand. The shares are called 'residual stock' - but what actually is that
Also had this Problem, but I am not looking to sell, purely to get them onto my online account.
Re The partner dropping out this presents a great opportunity for Econergy to gain a much larger share of the PEG Project. If Saret default on the loan, which was secured on 6% of the PEG project ECG can take this share which would add 245GWh of generation, adding an estimated $25m to the group's
top line and $20m to EBITDA.
This share is an unbelievable buy at these prices. Am trying to bring together funds to increase my holding before the 12th of May (Final results out)
Other News Due;
Early 2008, News of a turbine order for the Mexican Wind projects Eolica Santa Catarina and Loreto Bay is expected to be released.
12 May 2008, Econergy's preliminary's.
4th quarter 2008, Areia Branca expected to enter commercial operations.
March 2008, turbine testing at Beberibe.
Q2 2008, Beberibe expected to enter commerical operations.
Early 2008, bids for the balance of Proyecto Eolico Guanacaste should be awarded.
Q1 2008, Cambria is expected to enter commercial operations.
Its my thinking that Cambria is already online since the Mwh figures on the website have been accelerating at a rapid pace over the last few days.
Dresdner Kleinwort in a research note gave Econergy a 155p price target. "We feel the recent share price move is unwarranted and we retain our buy recommendation on the stock" - 14 Jan 08.
"Its historic misclassification as a carbon trader has led to underperformance and presents an attractive entry point"
"Econergy would have a portfolio of gross installed capacity of 1.5GW by 2015" - this is 1.6% of Brazil's current total installed capacity or 6.3% of Argentina's.
"Potential Exit strategy, Econergy could position its Latin American Assets for sale in 3-4 years.... average acquistion multiples have been around $2.5M per MW, on that basis Econergy could expect to recieve around $1.2 Billion in proceeds from a sale at this time (2011)"
Looking at that 1.2$ billion, we can get an idea of potential returns. $2 to £1 = 700million proceeds. 30% Tax = 210million. Net Proceeds = 490million.
Assume 40million new shares are issued in the period, this gives us 127million shares.
490'000'000 (Sale proceeds) / 127'000'000 (No.of Shares in Issue, Current 87million)
= 3.85 = 385p per share.
Current share price = 39p, Potential upside = 887%
Another way of valuing ECG is the recent bid for Novera Energy,
That Bid values Novera at £111,564,000
3.2x The value of Econergy.
Novera was planning to generate 250MW by 2011, Econergy Plans to deliver 207MW by Jan 2010. The results will give us a better idea if ECG can beat this projection, assuming they do, both will have 250MW by 2011. Given comparable market Cap's - ECG 34.8M NVE 111.564M, divide them by 250 (MW) we arrive at a value per MW of
ECG - £139,200
NVE - £446,256. A Massive difference of £307,056 Per MW, suggesting ECG is heavily undervalued.|
|david77: I thought that the trading statement a couple of days ago was pretty good. All going as expected so I was surprised to see the share price fall. I added yesterday at 40.5p - less than half the price I first paid so I am pleased to see the price creeping up today.|
|david77: Miners share prices often sag a bit until they get into production and I see the same here. The current share price is well below the value of the assets so I am hoping for a real improvement when this company starts earning.|
|david77: I've got nearly 85,000 of these so really don't want to add. There are loads of bargains around but, unfortunately, I don't have loads of cash - otherwise I don't think that it would stay as cash for long.
I had 45,000 as a spread-bet with IG. I have emptied that a/c by buying the underlying shares. Fastrade wouldn't do broker-to-broker deals so I used Hargreaves Lansdown. I've now transfered all of my H-L shares to Fastrade. All have gone thru ok except ECG.
I had an email from Fastrade saying that H-L hadn't got the stock from the market - so I guess IG didn't buy the underlying shares and H-L didn't tell me when they bt the shares from IG.
I expect it to be resolved sometime - but it indicates to me that there isn't much stock around - so why has the share price fallen when I would have expected it to rise to encourage sellers?
I intend to hold onto my shares. I expect good news in due course so, if I am right, this latest fall is an excellent buying op - but I've got enough and no cash.|
|david77: If you intend to hold the shares longer term, then I would not worry about lack of certificate. You have a contract to buy the shares and the broker has a contract to deliver in due course. I've got quite a number of these and reckon that the share price should respond once they get more of their projects earning.
The final results in May were positive. They have set ambitious targets for the next couple of years. The share price could double if they meet those targets by end of 2010.|
|utwiq: not much here is new, but good to see some promotion:
Econergy International Generates Clean Energy And Earns Carbon Credits
By Rue Swabey
Carbon brokers acquire carbon credits at an early stage with the intention of selling them on at higher price. The upside potential is attractive but the risks are significant and the share prices of the carbon brokers are closely correlated to the carbon price. One company appears to have found the right risk-reward equation; US-based Econergy International stands to benefit from an increase in the carbon price but as the bulk of its revenues will come from the sale of clean energy it should have both earnings stability and visibility.
Econergy was founded as a consultancy in 1994 advising on the development of sustainable energy in Latin America. Over the years it has built up considerable experience in clean energy technologies. In 2006 it raised £60million and it is investing the proceeds in clean energy assets. Econergy's CEO, Tom Stoner, describes the company as an independent power producer rather than a carbon broker. It invests in assets that generate clean energy and carbon credits (although the latter is not the driving force for the investment). In fact between 80 and 90 per cent of Econergy's sales come from energy sales. Consultancy fees are expected to dwindle as the principal focus becomes energy generation.
Econergy's brokerage division has extensive experience of dealing with the Clean Development Mechanism (CDM) of the Kyoto Protocol. Econergy takes care of all the documentation to prepare a project for the CDM and manages the validation and registration process. It also identifies buyers and negotiates emission reductions purchase agreements on behalf of its clients.
Econergy's geographic area of focus is Latin America. Energy security is important in Latin America. While some countries are oil rich like Venezuela, the net oil importers have developed alternative sources of energy. Econergy's portfolio is primarily wind and small-scale hydro but it also has some exposure to bio-fuels by way of an agreement with Clean Energy Brazil (AIM-CEB) to build ethanol projects in Brazil. Econergy has a total of 13 projects under consideration: one in operation, another in construction, six in development and five in exclusivity. These projects, with a total capacity of 677MW, represent potential equity investments of US$223m by year end 2008.
In addition to its own investments, Econergy is a partner in the US$25.2million CleanTech Fund, a private equity fund dedicated to clean energy in Latin American and the Caribbean. Shareholders include regional development banks such as the Inter-American Development Bank, the Corporación Andina de Fomento (CAF). The fund's mandate is for small and medium-sized enterprises.
In February, Econergy acquired a 50 per cent stake in two Bolivian hydroelectric plants (Corani) with a combined installed capacity of 147MW. Corani is an important generator representing 20 per cent of Bolivia's electricity supply. It owns Bolivia's largest reservoir and its low operating costs allow it to generate energy during the dry season. Duke Energy sold the asset because it perceived a heightened risk that the Bolivian government could nationalise the country's energy infrastructure. This risk is reflection in the purchase price. Econergy acquired Corani at a significant discount - paying US$20million for an asset that Duke had valued at over US$50million.
Econergy released a trading statement in February in which management reiterated that it is on track to have 1m MWh produced and sold in 2009. In fact, following the Corani acquisition the board is confident that Econergy is ahead of the original expectations stated in the admission prospectus. Its portfolio of carbon credits, known as Certified Emissions Reductions (CER), stood at 16.6million as of December 31, 2006, an 18 per cent increase since July 2006.
Econergy's share price has been less volatile than the straight carbon brokers such as EcoSecurities and Camco. This reflects the higher visibility of its future earnings (power contracts versus the carbon price). Econergy floated on AIM in February 2006 when it raised £60million at 100p. Since then the share price has traded in a range between 82p and 98p. The majority of its energy projects become operational in late 2008 so it will not show any earnings before 2009. In the meantime news flow is likely to be limited to updates on current projects. However any signs that the US is moving towards a mandatory emissions cap would offer interesting opportunities to companies like Econergy which are well positioned to expand into the US.|
Econergy share price data is direct from the London Stock Exchange