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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Clipper Reg S | LSE:CWP | London | Ordinary Share | GB00B09H7Z56 | ORD 10P (REG S) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 65.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMCWP RNS Number : 9424S Clipper Windpower Plc 20 September 2010 For Immediate Release ____________________________________________________________________ CLIPPER WINDPOWER PLC - FINANCIAL TRADING UPDATE London, (UK), Carpinteria, CA (USA) - September 20, 2010 - Clipper Windpower Plc (the "Group," "Clipper," or the "Company") expects to release its interim financial statements on September 30, 2010. This RNS is an update of expected reported results and financial condition as of June 30, 2010, plus additional disclosure relating to potential corporate transactions or financings. Financial Summary Revenue for the six months ended June 30, 2010, is expected to be in the range of $150 to $154 million, primarily from the sale of 43 turbines, compared to revenue for the six months ended June 30, 2009, of $357.3 million, primarily from the sale of 127 turbines. In the current period, turbines were delivered to three separate customer sites in the United States and Mexico. Revenue for the first half of 2010 is in line with management projections that anticipated lower volume in the first half of 2010 as compared to the same period in 2009 and lower revenues in the first half of 2010 compared to the second half of 2010. The net loss for the six months ended June 30, 2010, is expected to be in the range of $26 to $30 million compared to a net loss of $120.2 million for the six months ended June 30, 2009. Results include net remediation and warranty related costs, for the six months ended June 30, 2010 and 2009 of approximately $20 to $24 million and $69.8 million, respectively. 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. The Liberty turbine is delivering sound performance with fleet-wide availability averaging over 95% year to date and exceeding 97% over the past two months. The fleet now totals over 1,190 MW of capacity installed and operating, at 18 generating sites across the U.S. and Mexico, and consisting of 477 Liberty turbines with over 5.3 million accumulated operating hours. Clipper's past inability to provide customers with turbine warranty coverage that is perceived to be consistent with top tier turbine manufacturers has been a significant factor in the lack of new turbine sales. A major breakthrough in this regard has been implemented with the recently finalized agreement for United Technologies Corporation ("UTC") to provide warranty support. This, coupled with Clipper expanding its marketing efforts into numerous countries and emerging markets outside the U.S., has resulted in active proposals for 1,750 MW of turbines and an additional 2,750 MW of proposals in process. The broader marketing and sales efforts include a relationship with UTC's 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 capabilities to turbine purchasers. U.S. Wind Market and Liquidity The global economic and credit crisis has materially impacted the availability of financing for wind projects, causing many of the Company's customers to reduce capital expenditures, delay projects, and defer turbine deliveries under existing contracts. Further, in the U.S., project developers and electric utilities dramatically reduced new orders for turbines and the lower energy prices for oil, natural gas, and coal have contributed to lower prices for power purchase agreements. These conditions now appear to be stabilizing at reduced levels from recent years. The Group expects to face significant liquidity strainwithin the next yeardue to lower receipts of deposits and progress payments from customers under new and existing orders, in comparison to the operating cash needed to complete these orders and fund operations. The Company has historically met its operating capital requirements with equity capital provided by institutional investors and from deposits and progress payments made by customers on contracts for future turbine deliveries. The Group has only $20 million of funded debt, but has significant obligations to (i) its customers under agreements for future deliveries and warranty and performance obligations; and (ii) its vendors and suppliers for services performed and for components purchased. The Group's consolidated cash position of $140 million at June 30, 2010, has decreased to approximately $86million as of the end of August 2010 due to continued cash requirements to fund the operating and capital needs of the Company, including increased purchases of components for the manufacture of turbines scheduled for delivery in the current year. Potential Financing Transactions In addition to aggressively broadening its marketing and sales reach to markets outside the U.S., the Group has been actively seeking additional sources of capital. The Group is exploring numerous alternatives to raise capital including private and public equity issuances and working capital credit lines with certain financial institutions as well as its largest shareholder, UTC. Discussions with UTC are ranging from providing credit support for a working capital line to equity purchases. During these discussions, UTC submitted to Clipper a non-binding indication of interest to acquire all of the ordinary shares of the Group not currently owned by UTC. The indication of interest was conditional on completion of confirmatory due diligence and additional terms and conditions. The Board comprising the non-UTC Directors ("Non-UTC Directors") has retained both financial and legal advisors to fully advise the Non-UTC Directors on strategic and financing options for the Group, including any potential transaction with UTC. The subscription agreement between Clipper and UTC entered into in January 2010 (under which UTC invested $207 million into Clipper) contains standstill provisions that generally limit UTC to a 49.9% shareholding until January 2012. In certain events, UTC is permitted to increase its shareholdings to 55%. In mid-September, UTC provided notice to Clipper that based on cumulative cash outflows, which they calculate have exceeded the level permitted in the subscription agreement, UTC and its affiliates are thereby allowed to increase their combined shareholding in Clipper to 55%. The Company's management has provided due diligence materials requested by UTC and will continue engaging in negotiations with UTC to determine whether a financing transaction or acquisition proposal can be arranged on acceptable terms. There is no assurance, however, that these discussions will result in a proposal that the Non-UTC Directors believe is appropriate to recommend to the Group's shareholders. The Group will also pursue other initiatives and believes that it will be possible to reach agreement with UTC or another party on the terms of a possible offer or new financing arrangements.In any event, there is a high probability that the Group will not be in a position to announce new financing arrangements or the terms of a recommended offer for the Group before the announcement of the Group's interim financial statements on September 30, 2010. In expectation of a positive outcome of the financing discussions, and/or significant new customer orders and deposits, management has prepared operating plans and projections to reasonably ensure the Group has adequate resources and operating flexibilities. The principal sources of projected cash inflows are: continued receipts from customers on existing turbine contracts (both for delivered turbines and turbines slated for future delivery); and sales of one or more development sites. The Group maintains an ongoing dialogue with existing customers to ensure that contractual payments from customers are received in a timely manner and, in situations where payments are dependent on other activities, that such activities are tracking to plan. The Group is in advanced negotiations for sales of one or more development assets, including related turbine sales agreements. However, until transactions are completed, there can be no assurance as to the terms and timing of such transactions. Without the announcement of an agreement on a substantive new financing transaction by September 30, 2010, the Company expects to disclose within the interim financial statements an opinion that the current business circumstances create a material uncertainty that casts significant doubt on the Group's and the Company's ability to continue as a going concern and, therefore, that it may be unable to realize its assets and discharge its liabilities in the normal course of business. However, in light of the ongoing active discussions with UTC and other institutional capital providers, and after making enquiries, reviewing forecast cash flows and considering the uncertainties described above, the Non-UTC Directors have a reasonable expectation that the Group and the Company have adequate resources and operating flexibilities to continue the business for the foreseeable future. Therefore, the Group intends to continue preparing its financial statements on a going concern basis. This press release contains statements about the Company that are or may be forward looking statements. 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, financing arrangements, 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. Goldman Sachs International, which is authorized and regulated by the United Kingdom by the Financial Services Authority, is acting exclusively for Clipper Windpower and no one else in connection with the possible offer and will not be responsible to anyone other than Clipper Windpower for providing the protections afforded to clients of Goldman Sachs International nor for providing advice in connection with the possible or any other matters referred to in this announcement. JP Morgan Cazenove, which is authorized and regulated by the United Kingdom by the Financial Services Authority, is acting exclusively for Clipper Windpower and no one else in connection with this announcement and will not be responsible to anyone other than Clipper Windpower for providing the protections afforded to clients of JP Morgan Cazenove nor for providing advice in connection with the matters referred to in this announcement. 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: +44 (0)7827 259495 Goldman Sachs International (Financial Adviser to Clipper) Brian Bolster / Nick Harper Tel: +1 212 902 2649 / +44 (0)20 7774 1000 J.P. Morgan Cazenove (Nominated Adviser and Corporate Broker to Clipper) Patrick Magee / Jamie Riddell Tel: +44 (0)20 7588 2828 FINANCIAL PRESS M:Communications Patrick d'Ancona / Charlotte Kirkham Tel: +44 (0)20 7920 2347 BUSINESS AND TRADE Clipper Global Communications Mary Gates Tel: +1 661 301 0400 ## This information is provided by RNS The company news service from the London Stock Exchange END TSTLIFEFALIIFII
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