26th Oct 2006 07:18
Camco International Ltd26 October 2006 Trading Update Camco passes the 100 million tonne mark Camco International Limited ('Camco') is a leading player in the origination,co-development, placement and management of Carbon Credits under the KyotoProtocol. Camco is pleased to provide an update of the progress the Company has made inthe execution of its existing portfolio of greenhouse gas emission reductionprojects and in acquiring new projects. HIGHLIGHTS: - Increase in contracted tonnes to 100,300,000, up from 78,800,000 at 7 August.This represents a 40% increase from the contracted portfolio at IPO of71,400,000. - 21,500,000 increase since 7 August comprises: €8 new projects totalling 17,000,000 tonnes. •The acquisition of MCF, a carbon origination and development firm in Russia, with a contracted portfolio of 6,800,000. •Conservative reclassification of 2,300,000 tonnes. - Portfolio now represents 61 projects, in 7 countries and 13 technologysectors, with the largest two being waste heat/gas utilisation for powergeneration and coal mine methane. - 3 new Host Country Letters of Approval ("LOAs") have been received forprojects representing a total of 21,600,000 tonnes. Camco now has Host Countryapprovals for 37,900,000 tonnes, or 38% of the contracted portfolio. - Commercialisation of the portfolio is proceeding well with 37,500,000 tonnesnow under Termsheet / ERPA. - Expansion in staff and regional presence is proceeding in line withexpectations and staff headcount is now 40. Tristan Fischer, CEO of Camco, commenting upon the Company's progress said: "I am very pleased to announce that Camco has passed the 100 million tonne markfor projects that we are developing. This represents a 40% increase since ourIPO in April and is in line with our expectations. Our strong performance isthanks to the business platform we have created and to the dedicated efforts ofour people around the world. Since our last update, we have further strengthened our operational capacity andmarket position in our chosen territories. The Carbon market continues to evolveand we have been tracking market developments in the United States, Canada andAustralia, which may result in a net increase in demand for Carbon Credits inthe longer term." PROGRESS IN EXISTING PORTFOLIO Camco has continued to focus on the execution of its existing project portfolioand has advanced its projects through the Kyoto approval process. Overall, therehas been good progress in the implementation of existing projects resulting inincreased certainty of successful Carbon Credit commercialisation. Camco has received a further 3 Host Country Letters of Approval from the Chineseauthorities for projects totalling 21,600,000 tonnes, all in the Coal MineMethane sector. As a result, after reclassifications, 38% of Camco's contractedproject tonnes now have Host Country approval, further improving visibility onthe estimated volume of Carbon Credits. NEW BUSINESS EXPANSION Camco has increased the number of projects contracted under carbon sharearrangements and its reserve of Carbon in specie rights continues to grow. Since 7 August, Camco's gross portfolio has expanded to 125,300,000 milliontonnes, of which 100,300,000 million are now under exclusive contract and25,000,000 million are under late stage negotiation, demonstrating Camco'ssuccess in expanding its portfolio. These figures include a downward adjustment of projected Carbon Credits from thecontracted portfolio during the 2008-12 Kyoto commitment period totalling2,300,000 tonnes, where changes to the scope of the projects may lead to lowercarbon credit generation than previously expected. OPERATIONS REPORT Camco's operational efforts have focused on building up a flexible and robustinfrastructure on which we can grow our teams in China and in Russia, and toexpand our presence in other markets. In China, Camco is a well-established and respected market leader and businessthere continues to expand, with new project wins and new staff in both businessdevelopment and CDM process roles. Through the acquisition of MCF, Camco has again expanded its staff numbers inRussia. Camco continues to work on its project pipeline in Russia in preparationfor the Russian government's finalisation of JI regulations. In Central and Eastern Europe, there remains good potential for renewable energyprojects, especially in wind energy. Camco will utilise its existing Europeanand Russian presence to develop this market further as warranted. In South Africa, Camco has retained a number of business developers tocapitalise on the opportunities brought to it from its extensive network ofcontacts. A number of projects are in late stage negotiations and furtherdevelopments in the Africa portfolio are expected. For further information please contact: Camco International Limited +44 (0) 20 7256 7979Tristan Fischer, Chief Executive OfficerScott McGregor, Chief Financial Officer PRESSGavin Anderson +44 (0) 20 7554 1400Ken CroninJanine Brewis ABOUT CAMCO: Camco is a leading player in the origination, co-development, placement andmanagement of Carbon Credits under the Kyoto Protocol. Camco works with industrial companies and utilities to identify and developgreenhouse gas emission reduction projects, managing the entire process fromproject initiation to carbon credit delivery. Camco helps maximise the volume ofcredits produced and facilitate their placement with purchasers in theinternational carbon market. This 'origination to delivery' capability provides greater clarity andmanagement of carbon credit risks, adding value to both sellers and buyersparticipating in Camco's transactions. Camco is a market leader in carbon credit origination in China and Russia, twoof the largest potential markets for Carbon Credits, as well as Eastern Europeand Africa. Additional information is available at www.camco-international.com END This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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