The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
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She's coming alive again. Lots of buying over last couple days.
Gotta be one of the safest stocks out there at present.
http://hsprod.investis.com/ir/rwe/ir.jsp?page=news-item&item=1508983072361093 This is great news - good to see the front end of the business started moving again. What a site, RNS says the 9MW combined site will generate 27,000MWh - that is 34% capacity factor. Great figures from a numbers point of view. Even allowing for the slightly softer wholesale market and reduced ROC regime this consent is still worth over £5m when constructed if sold. A lot more if operated, but we all like gravy today. Gravy tomorrow is cold and lumpy. Noodles. Considering jumping back in.
I understand there is shale gas Lancashire. Given the events at Orchard End, REG may well strike gas!
I was wandering how the emerging market for UK shale gas may affect the future competitiveness of REG. I would be interested to hear some views on this topic.
Don't worry after short term drift. Just tuck these away for 18 months or so and they should then be worth significantly more. Good time to add though, I agree.
Never thought sub 60p would be seen again! Might start building back up again.....
A briefing document on the wind industry written for investors – and seen by The Sunday Telegraph – shows how attempts to increase the supply of green energy will make turbines far more profitable over the next decade. .. http://www.telegraph.co.uk/earth/energy/windpower/9934846/Green-tax-boost-for-wind-farm-profits.html
Buys going through at full ask price. The magic sign!
My average is similar to yours but edging up as will be buying up to 80p. This is a very stable and well managed company and the sp can only head 1way in the medium term.
for sharing the outcomes of the meeting and sharing your knowledge
Useful notes - using the old stuff to pay the wages is a nice touch to the business model, and reduces risk from our point of view. A good year will be a lots of profits from sales to Black Rock - a bad year is break even. The reason I invest in WIND is because they recognise the difference between a planning consent and an operating project. And they generally get 2 or 3 new sites up and running most years. I'll be honest and say I was fortunate enough to have a 45p average so have taken some profits, but still hold a few. I will be buying back in on planning decisions, Well played EH for y'day - GL with your holdings, Noodles
I attendend the interim results presentation 4th Feb, and met Andrew Whaley and David Crockford from REG both very plesent chaps, also Ian Lawrence from REG attended. about 8 persons attended, I was the only pi. A few of my personal notes from the meeting follow. The arrangement with BlackRock took about 6 months to finaise, about 5 or 6 other (unnamed) other interested parties, all the deals were about the same income wise, but BlackRock won because of the previous expierence in wind farm assets. The asset management agreement typicaly costs 3 to 5%, and will create a new high quality income stream. BlackRock are not interested in taking on the smaller wind farms, I got the impression 4MW was the lower limit, and that REG would keep the older wind farms a use the income to pay for the running of the company. There is about another £0.5m of costs associated with the sales of assets to BlackRock. Although the exact split is undecided REG are looking to sell maybe 20-30MW to BlackRock a year and keep 10MW in house. One of the reasons the projects in partnership with Creagh Concrete are taking a long time is that long (25km?) interconnects both in and out to the quarry need to be built, Northen Ireland is way behind the UK in this respect. The press report about the HSBC "loan" is a bit of a misunderstanding as the Coop are still being used by REG, the HSBC is just a short term finance. All in all a postive meeting, REG have a lot of experence in building wind farms and understand that all though there are many 'consented' wind farms, getting a working site involves many other constraints and being aware of these is the recipe for a profitable business.
New Partnership for Living Fuels/Bale GroupRenewable energy company Living Fuels is delighted to announce its partnership with Bale Group, which has taken over the collection of used cooking oil from its customers in the southwest of the country after a successful three month trial. see http://livingfuels.co.uk/news_article/277
Good find. My worry is no turbines have been ordered. South sharply took 13 months from turbine order to operations, sancton hill took a year an orchard end looks like a year. I.e- unless they get a turbine order in soon i doubt it'll be operational this year. But hey- they were plenty busy with the black rock stuff :)
Good to see this board growing and research happening. All of REG's operating projects are financed with the Co-Op, their RNS' confirm this. Not sure what the HSBC press release is, perhaps a corporate level facility. GL all
Renewable Energy Generation (REG) has secured a €15m (£12.6m) trade finance facility from (HSBC) see http://www.insidermedia.com/insider/south-west/83637-reg-secures-multimillion-pound-finance-facility
Brackagh Quarry ...Planning permission 29 May 2012 Construction works on the 6 megawatt wind farm will begin in early 2013 with electrical generation expected in late 2013 Draperstown Pit ... recently received planning permission 29th May 2012 Creagh Concrete have recently received planning permission for constructing and operating 3 turbines at our Draperstown Pit. This has taken 5 years to achieve this and construction will take place late next year. Ardboe facility ...proposed 250KW turbine...Planning permission 29 May 2012 ...plan to install the turbine over the next 12 months see http://www.creaghconcrete.com/Energy-News.html see http://www.creaghconcrete.com/Products/renewable-energy/wind-opportunities.html
On the wind side of the business I read in a REG presentation that the cost is £1.25m p/MW. You can get the bank to put in £1m of that, and the developer puts in £0.25m p/MW. You then sell to BlackRock at £2m p/MW which takes the debt of £1.0m p/MW with it, giving the enterprise value of £1.0m - making a return of £0.75m p/MW. A cracking return on an investment of £0.25m. That is the model - it'll be hard work for them, and they do everso well at getting consents and getting stuff built. Make no bones about it, look out your window now - not easy putting up 100m towers. Not easy convincing local communities to support an onshore development. But the returns are there - for Wind. Bio and STOR is complex and unpredictible. National Grid have many options to keep the needle at 50htz. Demand side - the economy is bumping along the bottom so demand is static, about 10% lower than the peak in 2007. That is a lot of demand gone. What if we are all getting more efficient and it never comes back? Supply side - coal is cheap, old coal plants are running full tilt, perhaps some old coal plants are even in the STOR mix. If it is being difficult to predict, further capital investment is a tough call when you have a bucket full of wind projects to invest your £0.25m p/MW and get serious returns. The Board have demonstrated they know what they're doing when it comes to developing/financing/operating renewable projects. If there is a way - they will find it. If you understand the markets and technology this is a brilliant company to invest in. If you don't have the understanding that is where you don't stand much of a chance because REG are not brash about their PR - which means the company is not on the radar of many PI's. Hopefully this announcement realises some historic value for the long term holders and introduces a model for newbies.
Noodles, thank you for the questions, I will need to reread the accounts and RNS to be sure I know all the background, may come back to you on your questions once I have reread everything. My only immediate question is why does the Bio side of the business seem so slow to take off? And the very few STOR faclities they have. Re #3 there has been a lot in the news recently about possibility of Ireland selling back wind power to UK to UK meets its renewable targets, maybe landowners in Ireland waiting to be seduced by the big boys in wind power.
1. The BlackRock rns talked about pre construction project finance. That means REG doesn't need anywhere near as much cash to develop and construct. Is this the long term plan and does that mean more divs and buy backs? 2. How is developing the pipeline going? Haven't had enough rns' about planning decisions this year. The last presentation I saw talked spending 4m pa on development and getting 80mw into planning- with 30mw of consents. If the metrics change significantly you might as well buy consents from another developer. 3. What is going on in Ireland?! They bought a consented 18 months ago for 1.1m and no turbines have been ordered. 4. Treasury- what is all this restricted cash? Tied into coop finance but I looked at the accounts for Loscar and it has millions locked away doing nothing. 5. What extra overhead does the asset management agreement need? 6. Bio power. Is the turnaround plan working? 7. Other technologies - solar is cheap and easily sold. Must use similar skills to the wind business
I have asked, and just had the OK to attend the Interim Results presentation on 4th Feb in London. Will report back on my return, assuming there will be the opportunity to ask questions, does anyone have anything to suggest? I will have a think myself over the next couple of days.
Yes another toddler in the SIPP which could morph into an aggressive teenager. Today's announcement is a closing loop but I do agree with posters who state that the dirs should be at it. Yes they have a few but the intent would be symbolic. There are other material differences of course but I do see this as the critical difference between this one and Hydrodec where the dirs are ball deep where it matters. Medium term though I do like this plc strategy. Can anyone confirm if Andrew Whalley has form elsewhere because despite the use of the Internet it is not immediately obvious?
Plenty still to play for here yet. Certainly not looking to slice off any of my holding in the 60s, nor 70s for that matter.
well said