Renewable Power & Light Share Discussion Threads

[gdp2] 12/5/2008 15:52

Only just glanced at this company as a recovery play in the last few days but have people seen that International Power has bought US Peaking Plants which produce 1,857MW for $856,400,000? This means they have paid £235,362 per MW, RPL's two Peaking plants have a combined capacity of 150MW and a market cap of £15.96million, which converts into £106,400 per MW. Could be a substantial premium in the future for these shares IMO, or they could go broke.

[pezza2] 07/5/2008 22:53

1 May 08

Renewable Power & Light
RPL (Renewable Power and Light) reported 2007 results revealing a US$ 15.6m operating loss for 2007 on revenues of US$ 1.63m. Due to the contractual failure by the group's suppliers of palm oil in July last year, which was to provide feedstock for biodiesel at an attractive cost, the group was unable to run its two power plants as initially planned. Instead the group has only operated in peaking mode using natural gas as a feedstock and earned revenue from capacity and steam sales.
Valuation - At end December 2007 the group had cash of 43.4p/share and net cash of 20.6p/share. On a going concern basis Libertas Capital estimates the current NAV at 35.9p/share including 18.4p in cash assuming realisation of 50% of the cost of the group's biodiesel assets. Libertas Capital is expecting a cash burn of only US$ 4m to year-end 08E giving an NAV of 31.7p. Against this level the shares are trading on a discount of 50% to current NAV and 44% to estimated year-end '08E NAV with just under 50% of NAV is represented by cash. Group EV is currently £1.7m Libertas Capital estimates.
If RPL is valued on a liquidation basis, the value per share could be somewhat lower; most of the value in its power plants (equivalent to 12p /share) would be realisable Libertas Capital believes but it would get little value for its biodiesel assets under fire-sale conditions. These biodiesel assets are in the FY 2007 balance sheet at 10p/share. The group also has US$ 11m of tax losses carried forward for which no tax asset has been raised. If the group were to be utilised by a profitable business in the US as a listing vehicle these losses are potentially worth US$ 3.8m or 2p/share.
Providing investors are willing to put their faith in management, with cash burn now under control and given the good cash backing of 18.4p share, investors can look for upside particularly given good asset realisation. RPL is a high risk but potentially rewarding situation.
Strategy - The group's strategy is to negotiate a sale of the biodiesel plant and the lease and term agreement for the biodiesel site. It is currently in negotiations for their sale although it is uncertain when or if they will result in a transaction. The group continues to operate its two power plants for peak electricity needs only, using natural gas while it continues to look for alternative feedstock. Management has also sought to reduce costs through the closure of an office in Calgary, a reduction in power station running costs, reclassification and a reduction in property taxes and the renegotiation of leases. With a lower cost base and additional revenues (eg sublease of rail stock) it expects to reach close to break even in 2008. It is also considering other options for its power plants; either outright sales or joint ventures. The group also continues to look at other opportunities in the renewable energy sector.
Prospects - In addition to cost reduction, which will enable the group to reach breakeven by late-2008, it plans to increase transmission capacity by upgrading its output line to the grid which will enable it to transmit more power into the grid at peak times. The required investment of US$ 0.5m is expected to yield US$ 1.0m in additional
Listing
AIM
Code
RPL
Price
17.5p
12 mth range
13.5-131.5p
Market Cap
£16.7m
SMALLER COMPANY REVIEW
May 1 2008
6
revenues pa. Earnings for the power plants are somewhat dependent upon weather since peak off take usually occurs only during extreme cold or hot weather
While RPL is in negotiations to sell its mothballed biodiesel plant, it continues to incur 'caring' costs but these are relatively low. Legal costs also continue while the group is in negotiations on the sale of assets and renegotiation of contracts.

[boffster] 01/5/2008 10:22

There are loads of out of favour companies with a NAV exceeding their market cap. Why not put your money in one which has some prospects rather than having it whittled away by some pointless legal dispute.

[robin_of_loxley] 01/5/2008 00:16

the one min charts are from bigcharts, but are delayed

[shar] 30/4/2008 23:55

Await further news +++++++++++++++++++

[bubface] 30/4/2008 17:17

sept ints..$50m cash=£25m in real money.current market cap £18m... cash ain't doomed.

[volsung] 30/4/2008 17:11

Biofuel is doomed. Take your profits and run for the hills.

[clancrackan] 30/4/2008 17:10

Spent months looking at endless palm oil monoculture in SE Asia and competing Bio-Diesel versus food production is proving to be stupidity imo

[bubface] 30/4/2008 16:33

maybe they just want to give us the cash back?

[boffster] 30/4/2008 16:22

I don't see how one can get excited about the results of a company which has next to no turnover.

[asparks] 30/4/2008 16:12

results next week

[asparks] 30/4/2008 15:43

flying now

[andrbea] 30/4/2008 14:26

evans is nothing to do with rpl

just an example of a big source of biodiesel on the same continent.

[powwow] 30/4/2008 14:23

has this really fallen from the highs of £1.20

[asparks] 30/4/2008 14:14

who is evans?

[5hake] 30/4/2008 13:44

jon but the test would not have been done without the fuel for the boiler?

[powwow] 30/4/2008 13:36

can someone tell me where these 1 min charts come from as I dont have L2 and they are much more useful than the 15 min charts as we know..

cheers

[jonc] 30/4/2008 13:15

Some bounce just because their boiler works!!!!!

Feel the width of that spread though.

No news on fuel for the boiler!!!!!!

[asparks] 30/4/2008 11:56

robin of lox - what's your view?

[omellete] 30/4/2008 10:03

Sparky - OK - the Power Stations run on Bio Diesel.

But where are they going to source it from and how much will it cost? That is the question they need to answer IMO

[asparks] 30/4/2008 08:53

good news today

[asparks] 25/4/2008 08:51

pezza I emailed the company asking when and they told me - try yourself if you dont believe it

[shaft] 25/4/2008 08:06

Pezza2

Prelims last year 27/4/07. The co will still be operational, the power stations will be producing, albeit in a conventional manner, they still have a duty to report.

[pezza2] 24/4/2008 19:28

OK asparks........I'll go for the bait.......care to explain your statement "news next week shaft" ? cheers