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first of all i made no mention of 'good news' but no doubt we are due some news with a number of projects ongoing and in the pipeline and not just on the wind side of the company. if overpriced why this year turn down 67.7p offer ?
Where will the good news come from? " Power Purchase Agreements covering all 41.15MW of wind projects, fixed for 1 to 3 years, " so wont benefit from the increase in energy prices. Wind has only returned in the last few weeks Mainly a flat calm in the Midlands Jan - April. Rights issue, or diluting placing, inevitable if going to maintain their capital spend on more loss making windmills. Looks very overpriced to me
some big trades going on here on tuesday 6th june we are due an update im sure there is some news coming very soon.
We must be looking at different accounts. Last full year ending 30 June 2010 - Turnover of £6.2m cash of £22.1m At half year (31 Dec 2010) turnover £4.3m up from £3.5m in equivalent half year, loss £1.9m (comparison loss £0.3m) but the killer is cash, now down to £7.6m - £14.5m cash burn in 6 months. They must have a rights issue soon and will have to stop paying dividends. With no wind for the first 4 months of the year I cannot see how the share price is holding up.
3 new huge solarfarms were approved in somerset yesterday despite local opposition. seems half the country will soon be covered in renewable energy sites. not good to look at but great for those invested in this sector. WIND still valued way under cash/asset value = total no brainer for me.
I am a fan of Alkane and dont see why WIND is rated higher
It's clear from the history of posts that Walkley is not a fan of this company. I am investing in the company because of the following strengths, that will turn into shareholder value: * 100% equity funded to the tune of £100m - as has been corectly identified, most of this has been spent - buying assets at very good prices in years when cash went a long way. Wind is a long game and these assets will generate returns at 12% - and the banks aren't taking a cut. * Losses - can cut it how you like, I would add if REG followed the accounting policies of SSE (FTSE 100), which capitalises all wind development costs (even pre consent) then REG would show a profit and a higher net asset value. i.e. Losses are product of over prudent policies, not operating losses. This is why bids get turned down, they are compared to fair value - not book value. I can see REG getting 100mw operating pretty quickly, which would give a share price of around £1.50. REG could turn off it's development spend and show a profit any time it wants - if they did that then I would cash in at 67p. With their growth plans, you'd be mad to sell out. This will be my only post on REG - I will let time and the share price do the rest.
Nice tick up at close
But it loses money - lots of it - more capex on windfarms that dont provide profits (because lack of wind). From the report -"Output was 29,640MWh compared to 23,602MWh in the same period last year, despite UK wind conditions reducing output by 24% below forecast and long-term averages, a trend which continued into January 2011." and into the windy month of March, if the rest of the country is the same as the midlands. But that is not all the bad luck "REG Bio-Power was adversely affected by the high price of waste cooking oil in the UK for commercially purchased oil to supplement the amount collected from municipal sites. Turnover was £0.7m and the EBITDA loss was £0.6m." And £249k was written off from the value of an existing wind farm. As far as electricity prices all it says is " Power Purchase Agreements covering all 41.15MW of wind projects, fixed for 1 to 3 years, now completed" but doesn't mention the price which may not be as good as past prices. I do not see the attraction - should have accepted the bid!
Renewable Energy Generation may have been recently by a lack of wind but look beyond the bald numbers, and REG offers much promise. It has received planning consent for new farms, increased its generating capacity and commissioned a windfarm near Rotherham, which is currently being built. The onset of gusty weather should help drive business back into the black, presenting an opportunity for investors. Buy says the Independent.
The uk govt? did hear that certain companies get grants as it isn,t a profitable business venture!
From 6 months report £'000s: Period Cash Flow Net decline in Cash and Cash Equivalents £11,208k Cash at end of Period £6,016k Proposed Dividend £516k "Retained Earnings" actually retained losses £18,058k Can someone explain how this company can carry on?
Small caps: Renewable Energy, Dominion Petroleum Date: Monday 21 Mar 2011 LONDON (ShareCast) - Renewable Energy lifted revenues to £4.3m from £3.5m in the half –year to December, but a lack of wind meant a loss before tax £1.9m up from £0.3m. “Abnormally low wind speeds across the UK resulting in over £1m of lost earnings,” it said. The group, which rejected a bid worth 67.7p in January, finished the six months with cash resources of £7.6m. An interim dividend of 0.5p per ordinary share is proposed.
Financial highlights · Group revenues of £4.3m (H1 2010: £3.5m) · Group EBITDA loss before exceptional items of £0.6m (H1 2010: profit of £0.4m) · Loss before tax from continuing operations of £1.9m (H1 2010: loss of £0.3m) · Abnormally low wind speeds across the UK resulting in over £1m of lost EBITDA · Total cash resources of £7.6m · Proposed interim dividend of 0.5p per ordinary share No wind eh? Bit of a bummer that! Have a look at the profitable Alternative Energy company - Alkane (ALK)
Andrew Whalley, REG Chief Executive Officer said: "The first half of the year has been a period of considerable continued progress, resulting in a near doubling of our operating capacity from the comparable period. "Since the period end, we have successfully concluded a wind power purchase agreement, a significant milestone towards the refinancing of REG's existing operating wind farms and we remain firmly on track to deliver our goal of investing £100m by the end of 2012. "Supported by a sound balance sheet, we are well positioned with the internal infrastructure and skill sets in place to deliver enhanced shareholder value by continuing to successfully marshal projects through our enlarged development pipeline."
Post period end · Rejection of approach in January at 67.7p per share · 4MW High Haswell wind farm energised, increasing Group capacity to 46.5MW · REG Biopower enters 2 year 8MW STOR contract with National Grid · Power Purchase Agreements covering all 41.15MW of wind projects, fixed for 1 to 3 years, now completed
Operational highlights · Group generating capacity increased to 42.5MW (31 December 2009: 22.5MW) · Goonhilly Wind Farm repowered from 5.6MW to 12MW to treble previous output · 4.5MW Loscar Wind Farm commissioned · Planning consent granted for Sancton Hill (10MW), Orchard End (4.0MW) and French Farm (4MW)
Renewable Energy Generation Limited (AIM: WIND), the renewable energy group, today announces its interim results for the six months ended 31 December 2010. Financial highlights · Group revenues of £4.3m (H1 2010: £3.5m) · Group EBITDA loss before exceptional items of £0.6m (H1 2010: profit of £0.4m) · Loss before tax from continuing operations of £1.9m (H1 2010: loss of £0.3m) · Abnormally low wind speeds across the UK resulting in over £1m of lost EBITDA · Total cash resources of £7.6m · Proposed interim dividend of 0.5p per ordinary share
This holds strong. Could not be a safer or more profound share to invest in st mo.
Andrew Whalley, Chief Executive Officer of REG, said: "The PPA we have signed with Statkraft is a component of the current refinancing of REG's existing operating wind farms and is highly flexible, allowing REG shareholders to benefit from any increases in UK power prices beyond 2014. We are delighted to be able to sign this off take agreement with Statkraft which provides a strong counterparty to our project financing initiative."
Power Purchase Agreement Renewable Energy Generation (AIM: WIND), the UK renewable energy developer and operator, today announces that it has signed a new power purchase agreement ("PPA") covering 8 of its 10 operating UK wind projects. The sites total 34.4MW of capacity and include REG's new projects at Goonhilly Downs, Loscar and High Haswell. The PPA has been signed with Statkraft Markets GMBH. Statkraft, the Norwegian energy utility, is Europe's largest renewable energy company, operating and developing hydropower, wind power, gas power and district heating schemes across Europe. Statkraft has an A- credit rating from both Moody's and Standard & Poor. The PPA provides REG with fixed prices until March 2014 and covers all electrical output along with Levy Exemption Certificates, Triads, REGOs, Renewable Obligation Certificates and other embedded benefits generated by the wind farms.
http://www.investegate.co.uk/Article.aspx?id=201103150700079044C
Now 92p West House Sec's and added as a buy and 85p with Evolution. Could not a safer place for your money with only upside. Govt bullish on Wind Power and Biomass.
REG Biopower, a subsidiary of Renewable Energy Generation (WIND), has won two contracts with National Grid (NG.) to provide short term operating reserve (STOR) using its innovative plant powered by waste cooking oil. Under the contracts, the group will receive an availability payment for standing by during STOR periods and a utilisation payment for any power generated. In addition, REG Bio will be allowed to run its plant "opportunistically" outside STOR hours. Shares in Renewable Energy and National Grid rose 1.13p to 55.13p and 4.25p to 577.25p, respectively