15th Jul 2010 07:00
15 July 2010
Camco International Limited
Trading Update
Camco International Limited ('Camco' or 'the Company'), a global developer of emission reductions and clean energy projects, is pleased to provide the following trading update for the six month period ending 30 June 2010.
Highlights
·; Continued expansion of Clean Energy Project Development activities, including a new partnership with a specialist energy fund to finance an initial $54 million portfolio of agricultural emissions-to-energy projects.
·; Carbon Project Development activities delivered a significant increase in issued Certified Emission Reductions (CERs) by reducing 4.3 million tonnes of CO2e emissions (H2 2009: 2.3 million tonnes).
·; New advisory contract wins amounting to £3.5 million in fees, moving the Advisory business firmly into profit.
Clean Energy Project Development and Investment
Camco has continued to grow its project development and investment operations in North America. Camco has teamed up with a specialist energy fund to finance an initial portfolio of US agricultural emissions-to-energy projects worth $54 million. Camco has incorporated and is leading a consortium, AgPower Group LLC ('AgPower'), through which Camco will deploy this capital to build and operate emissions-to-energy projects in the agricultural sector. AgPower's members have extensive local experience in building anaerobic digesters that convert manure and other agricultural waste products into renewable energy.
Carbon Project Development
The carbon portfolio has remained solid, progressing through the regulatory pipeline as expected. Carbon Project Development activities delivered a significant increase of 4.3 million tonnes in issued CERs, mainly from new projects passing the important milestone of first issuance.
Changes in the UN Executive Board issuance and registration procedure are expected to improve delivery times in the long run, however, in the shorter term developers are experiencing delays as the changes are implemented, which has impacted Camco's total issuance projections.
There has been a reclassification of the contract structure of several projects from In Specie to Revenue Share. The reclassification and UN delays resulted in Revenue Share volumes rising while In Specie contracted volumes decreased. If the delays persist it may lead to a further reduction of 1.5 million tonnes from the In Specie portfolio.
In addition, Camco saw its first issuance of ERUs (Emission Reduction Units) which were delivered from a Bulgarian hydro project.
Portfolio as of 30 June 2010
|
Progress through stage |
30-June-10 |
31-Dec-09 |
30-June-10 |
31-Dec-09 |
|
|
PDD Volume |
PDD Volume |
Risked Volume |
Risked Volume |
|
|
(m tonnes) |
(m tonnes) |
(m tonnes) |
(m tones) |
|
Projects under management |
|
|
|
|
|
Contracted |
140.0 |
147.1 |
87.8 |
93.3 |
|
Registered |
86.1 |
83.3 |
53.2 |
50.0 |
|
Issued |
13.1 |
8.8 |
13.1 |
8.8 |
|
Tonnes to Camco's account |
|
|
|
|
|
In-specie Portfolio |
45.5 |
51.0 |
26.3 |
30.3 |
|
In-specie sold forward |
|
|
11.3 |
9.0 |
|
Revenue Share |
41.1 |
29.3 |
26.0 |
19.3 |
|
Revenue Share sold forward |
|
|
10.5 |
10.0 |
Energy and Carbon Advisory
Camco's Advisory business had a very successful first half in 2010 with the division moving firmly into profit.
There was particularly strong demand for consultancy support in the UK from both public and private sector clients in the run up to the introduction of the Carbon Reduction Commitment Energy Efficiency Scheme and Feed-in Tariffs which both started at the beginning of April.
In addition, demand for Camco's services in Africa has increased with the team winning contracts in South Africa, Uganda and Tanzania to provide a range of services from corporate carbon strategy to clean energy investment assessment.
Balance Sheet
The Company had a strong cash balance of around €18.4 million at 30 June 2010.
Scott McGregor, Camco's Chief Executive, said:
"Camco has had a successful 6 months, with strong performances across all parts of the business as we continue to build a company focused on the creation of shareholder value. We raised equity funding for our project development business in the US, accelerated delivery of emission reductions as our carbon portfolio progresses and our advisory business moved into profit. I expect that we will continue to improve this progress through the remainder of the year."
Enquiries:
|
Camco |
+44 (0)20 7121 6100 |
|
Scott McGregor, Chief Executive Officer |
|
|
Graeme Halder, Chief Financial Officer |
|
|
|
|
|
KBC Peel Hunt Ltd (Nominated Adviser and Broker) |
+44 (0)20 7418 8900 |
|
Dan Webster |
|
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David Anderson |
|
|
|
|
|
M:Communications (Public Relations Advisor) |
|
|
Charlotte Kirkham |
+44 (0)20 7920 2331 |
|
Elly Williamson |
+44 (0)20 7920 2339 |
|
Patrick d'Ancona |
+44 (0)20 7920 2347 |
Notes to editors:
About Camco
Camco International Limited (Camco, AIM: CAO) is a global developer of emission reductions and clean energy projects with operations in the US, the UK, China, Africa, Russia and SEA.
Camco has a 20 year track record in project development, technical delivery and policy development, working with local industry, multinational companies, governments and regulatory bodies.
Camco's Clean Energy Project Development and Investment teams collaborate with industry, project developers, equipment providers and investor groups to create emissions-to-energy projects and maximise sustainable energy production across a range of industries; including agricultural methane, industrial energy efficiency, coal mine methane, municipal solid waste, biomass and landfill gas.
The Carbon Project Development business has created one of the largest emission reductions portfolios and has structured groundbreaking and innovative arrangements for the sale and delivery of emission reductions to compliance and voluntary buyers.
The Energy and Carbon Advisory teams provide strategic, commercial and technical expertise accrued over two decades to deliver low carbon energy and sustainable development solutions.
www.camcoglobal.com
Additional notes
In this trading update, both Project Design Document (PDD) volumes and the Company's own estimates of delivery (risked tonnes) are disclosed with the intention of providing further transparency and guidance on the Company's assets. The following definitions apply to the portfolio numbers provided in the tables above:
PDD Volume - Prior to validation or determination, PDD numbers reflect Camco's current anticipated project delivery.
Risked Volumes - Risked delivery estimates reflecting known and anticipated regulatory, registration, verification, delay, operating and commercial risks across projects in Camco's portfolio
Progress through stage - Represent CDM (Clean Development Mechanism) stage or equivalent for JI (Joint Implementation) and VER (Voluntary Emission Reduction) projects
Registered - CER's, ERU's and VER's are registered under the different schemes.
Issued - CERs, ERUs and VER's delivered and issued
Projects Under Management - CERs, ERUs and VERs from all projects that Camco develops for its clients.
Tonnes to Camco's Account - CERs and ERUs Camco receives to its account for services performed or tonnes Camco earns commission revenue on.
In Specie - CERs and ERUs Camco receives to its account for services performed. Camco's in specie portfolio excludes VERs and includes only tonnes already delivered and to be delivered during the first Kyoto period which ends in 2012.
Revenue Share - Certified emission reductions Camco receives commission revenue for services when delivered.
CER's - Certified Emission Reduction Units that have been generated via the Clean Development Mechanism (CDM) under Article 12 of the Kyoto Protocol.
ERUs - Emission Reduction Units that have been generated via Joint Implementation (JI) under Article 6 of the Kyoto Protocol.
Related Shares:
RED.L