Operational and Trading Update

 

TIDMCWP 
 
RNS Number : 9587P 
Clipper Windpower Plc 
27 July 2010 
 

Clipper Windpower Plc - Operational and Trading Update 
 
London (UK), Carpinteria, CA (USA) - July 27, 2010.  Clipper Windpower Plc 
("Clipper" or the "Company") provides an operational and trading update. 
 
·    Turbine performance continues to improve with fleet-wide availability 
averaging 95% in the first half of 2010 and currently exceeding 97%. Over 1,190 
MW of capacity is currently installed and operating at 18 generating sites, 
comprising 477 Liberty turbines with over 4.7 million accumulated operating 
hours. 
 
·    As indicated in previous guidance, Clipper expects to deliver against firm 
orders in the range of 140 to 180 turbines (350 to 450 MW) to customers in 2010. 
Deliveries are likely to be at the lower end of the range pending confirmation 
of customers' project schedules.  Revenue recognition will be heavily weighted 
toward the second half of the year after delivery of 43 turbines in H1, in line 
with Clipper's 2010 operating plan.   Accordingly, the Company expects to report 
an operating loss for the first half and positive operating income in the second 
half. 
 
·    Clipper and United Technologies Corporation ("UTC") are finalizing an 
agreement for UTC to provide Liberty wind turbine warranty support for selected 
new Clipper business. The agreement will provide Clipper turbine warranty 
support consistent with top tier turbine manufacturers.  Significant terms 
include payment of a fee to UTC for use of the guaranty, a grant of a security 
interest in the assets of Clipper and its major subsidiaries, and an option to 
purchase approximately 5% of the outstanding shares of Clipper in the event of a 
Clipper default. This agreement is subject to shareholder approval and a 
circular outlining the Company's proposal will be distributed to shareholders 
within the next month. 
 
·    Clipper and UTC have signed a formal intellectual property and technical 
assistance license agreement for the use and application of UTC technology in 
Clipper's business. 
 
·    Clipper is expanding its market base to major global economies and emerging 
markets outside the U.S. These efforts include a relationship with Pratt & 
Whitney Power Systems ("PWPS") to enable Clipper to leverage the PWPS global 
distribution network to sell and service the Liberty turbine and to provide 
integrated turnkey project solutions to global customers. 
 
·    The Company's advanced stage project development assets exceed 1,000 MW, 
with a portion in advanced negotiations for potential sales of project assets 
together with Clipper Liberty turbines. 
 
·    Cash balance of $153 million at June 30, 2010, including $13 million 
restricted cash. Clipper is currently exploring the potential of securing 
working capital facilities to assist with the funding of the business and growth 
opportunities. 
 
"Clipper has made significant progress with recent turbine proposals through our 
collaboration with UTC, which underpins Clipper's new global business drive. 
Alongside UTC's support of Clipper turbine warranties, UTC's global marketing 
and turnkey services will greatly assist Clipper to expand its reach and breadth 
to customers worldwide."   Mauricio Quintana, President and Chief Executive 
Officer, continued,  "We are encouraged to see a degree of optimism returning to 
the U.S. wind market along with some sizeable financing transactions in wind 
energy developments.  Clipper has a strong platform to continue to expand in the 
U.S. as well as capture growth in targeted markets globally." 
 
This press release contains statements about the Company that are or may be 
forward lookingstatements. All statements other than statements of historical 
facts included in this press release may be forward looking statements. Without 
limitation, any statements preceded or followed by or that include the words 
"targets," "plans," "believes," "expects," "aims," "intends," "will," "may," 
"anticipates," "estimates," "projects," or words or terms of similar substance 
or the negative thereof, are forward looking statements. Forward looking 
statements include statements relating to the following: future capital 
expenditures, expenses, revenues, earnings, synergies, economic performance, 
indebtedness, financial condition, losses and future prospects, business and 
management strategies and the expansion and growth of the Company's operations 
and potential synergies between the Company and UTC . 
 
Such forward looking statements involve risks and uncertainties that could 
significantly affect expected results and are based on certain key assumptions. 
Many factors could cause actual results to differ materially from those 
projected or implied in any forward looking statements. Due to such 
uncertainties and risks, readers are cautioned not to place undue reliance on 
such forward looking statements, which speak only as of the date hereof. The 
Company disclaims any obligation to update any forward looking or other 
statements contained herein, except as required by applicable law. 
 
All subsequent written and oral forward looking statements attributable to the 
Company or persons acting on the Company's behalf are expressly qualified in 
their entirety by the cautionary statements above. The forward looking 
statements included herein are made only as of the date of this press release. 
The Company does not intend, and does not undertake any obligation, to update 
these forward looking statements. 
 
About Clipper 
Clipper Windpower Plc, www.clipperwind.com, is a company engaged in wind energy 
technology, turbine manufacturing, and wind project development.  The Company 
designs advanced wind turbines, manufactures its 2.5 MW Liberty wind turbine, 
and actively develops wind power generating projects in the Americas and Europe. 
Clipper's headquarters are in Carpinteria, California, USA.  The Company's 
330,000 square foot manufacturing and assembly facility for land-based wind 
turbines is located in Cedar Rapids, Iowa; its development center for offshore 
wind turbine development is located in Blyth, UK.  Clipper is a public company 
listed on AIM of the London Stock Exchange. Clipper's ticker symbol is CWP. 
 
The ordinary shares of Clipper Windpower Plc are traded on AIM of the London 
Stock Exchange and are not registered under the U.S. Securities Act of 1933, as 
amended. Such shares may not be offered or sold to residents of the United 
States or to persons acting on their behalf, or to other persons who are "United 
States Persons" within the meaning of Regulation S as promulgated under the 
Securities Act of 1933, unless such shares have been registered under the 
Securities Act or there is an available exemption from registration. 
 
 
### 
 
For further information, please contact: 
 
INVESTORS 
 
Clipper Windpower Plc 
Jenny Matthews 
Investor Relations 
Tel: [phone] 
 
J.P. Morgan Cazenove (Nominated Adviser and Corporate Broker to Clipper) 
Patrick Magee / Jamie Riddell 
Tel: [phone] 
 
FINANCIAL PRESS 
 
M:Communications 
Patrick d'Ancona / Charlotte Kirkham 
Tel: [phone] / 2331 
 
BUSINESS AND TRADE 
Mary Gates 
 Director, Global Communications 
 +1 661 
301 0400 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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