RED.L Regulatory News (RED)

RNS

30 September 2013

Camco Clean Energy plc

("Camco" or the "Company")

Interim Results 2013

Camco Clean Energy plc (AIM: CCE), the experienced project developer working to develop, construct, deliver and operate projects that contribute to a sustainable future today announces its results for the six months to 30 June 2013.

Scott McGregor, CEO of Camco said:

"I am very pleased with how Camco's staff and shareholders have responded to the challenges faced in the first half transition. We enter the last quarter of 2013 and into 2014 with renewed optimism recognising that the efforts made so far in transitioning the business need to continue to deliver a successful outcome.

Outlook

As was discussed at length in our final results for 2012, the almost total collapse in the EU carbon markets was a shock that many businesses in our sector did not survive. We have now completed our cost reduction program to structure the Company with a lower cost base more appropriate to our current business initiatives and accelerated our business activities in US, Africa and the UK to deliver top-line results as quickly as possible. We are now positioned to benefit from the significant increase in opportunities that we have generated and for the remainder of 2013 and 2014 we will focus on delivering these.

We continue to pursue our pipeline of clean energy projects in the US and in Africa whilst leveraging and expanding our market leading footprint in Sub-Saharan Africa where our consulting practices have run and developed multiple clean energy projects. Our expertise gained through surviving the collapse in the EU carbon markets is being used to augment our leading position in the California carbon markets which is in the process of issuing its first credits."

2013 OPERATIONAL HIGHLIGHTS

· North America power projects

o Jerome 4.5MW Biogas Facility continues to meet monthly power rate targets enabling it to fully benefit from the fixed rate agreed in its power purchase agreement

o Reached agreement to acquire the Twin Falls 2.1MW Biogas Facility bringing the Company's biogas portfolio to a capacity of 6.6MW. This acquisition is expected to complete in Q4

· North America carbon

o California Air Resources ("CAR") Board announced on 24 September 2013 that it was issuing the first carbon offset credits (California Carbon Offsets ("CCOs")) in the Californian carbon market

o As part of this first compliance offset issue, Camco was issued 54,497 CCOs from a project which destroys ozone depleting substances/gases, which would have otherwise been emitted into the atmosphere

o Camco has also developed a significant number of the agricultural methane projects currently listed under the Program which are under its management

o Current auction floor price in the Californian carbon market is USD $10.71 and this floor price will increase by inflation plus 5% each year, providing more overall price certainty for market participants than the European Trading Scheme

o Upon issuance by CAR of offset credits this will provide the company with important cash flows from its US carbon business

· Africa

o Recent $1m USAID project awarded to develop biomass power solutions from agricultural waste for local communities in Tanzania and Benin to increasing agriculture productivity

o The South African government has announced the schedule for the Small IPP Procurement Program with the first round of projects to be submitted in October 2013. The Company has previously announced it has signed a land lease option on a 5MW project which it will submit in the first round and also has under development a further 20MW pipeline of similar size PV projects

· REDT*

o Passed the first selection phase of the Energy Storage Technology Demonstration Competition organized by the UK Department of Energy & Climate Change (DECC). This phase involved a feasibility study for a 1.2 MWh storage system in Scotland

o UK Pilot system has performed for the last year as expected, with a proven round-trip efficiency of > 75%

· China carbon

o Despite the continued low carbon price environment our team continues to deliver some cash flow from its CDM and VER portfolio. The Company has also commenced trading activities in the EU to provide services to EU compliance buyers and sellers

o Our team continues to work through restructuring our CDM contracts protecting the company from contingent liabilities and addressing our partners' best interests during the collapse of the carbon market

· South East Asia

o Disposed of its entire 60.1% interest in Camco South East Asia for $6.01m with the proceeds being used to invest in the Company's clean energy project development business in the US and Africa and for general working capital purposes

· Operations

o As previously announced, the Company continues to keep close control over its cost base and reduce expenditure where possible whilst maintaining operational functionality. The majority of these actions have now been taken including relocating three offices to significantly lower cost facilities

* Camco Clean Energy plc, on a fully diluted basis, has an economic interest of 49% in REDT.

FINANCIAL HIGHLIGHTS for the period ending 30 June 2013

· Cash and cash equivalents of €8.3m which includes cash held in escrow of €2.3m pending completion of the acquisition of the Twin Falls Biogas Facility. Adjusted net cash(1) of €6.0 million representing 2.7 pence per share

· Revenue earned in the period of €5.2m with no required carbon fair value adjustment. This compares with €3.7m revenue earned in H2 2012 which the Directors believe is a more comparative period than H1 2012 (€12.2m) as a result of the carbon price fall during the second half of 2012

· Gross profit of €2.6m compared to a gross loss of €7.4m in H2 2012 and a gross profit of €7.6m in H1 2012

· Administration expenses reduced to €4.8m compared to €5.8m in H2 2012 and €6.5m in H1 2012. Administration expenses include depreciation on the Jerome Facility of €0.4m (H2 2012: €0.4m, H1 2012: €nil). A further reduction in administration expenses is anticipated in the second half of the year which will benefit from the full effect of the cost saving measures undertaken in H1 2013

Notes

(1) Adjusted net cash is calculated as follows:

* Cash and cash equivalents includes cash held as a debt reserve balance of €0.81m in relation to the Jerome Facility (FY2012: €1.03m; HY2012: €0.97m).

(2) H1 2013 refers to the unaudited 6 month period to 30 June 2013 or as at 30 June 2013, FY 2012 refers to the audited 12 month period to 31 December 2012 or as at 31 December 2012, and H1 2012 refers to the unaudited 6 month period to 30 June 2012 or as at 30 June 2012. H2 2012 refers to the unaudited 6 month period to 31 December 2012.

(3) Carbon Segment

As at H1 2013, the Carbon business had an effective net liability position of €4.5m, a positive improvement of €0.4m from the effective net liability position of €4.9m as at FY2012. The Directors continue to work diligently to reduce the net liability position. The following table sets out this position and how this has altered since FY 2012.

As disclosed in the 2012 annual report and accounts, in addition, a number of fixed price carbon purchase agreements are held in various entities across the Group. With the significant decline in the carbon price over in the 18 month period to 31 December 2012, these fixed price contracts result in a current (as at 30 September 2013) potential un-provided exposure across the Group of €18.5m which had reduced by €2.2m from €20.7m as at 27 June 2013 (the date the 2012 Annual Report and Accounts were published). This exposure, which is being experienced across the industry, arises where entities are required to purchase carbon credits under fixed price purchase agreements at a price that is higher than the current market price at which those entities can sell the carbon credits.

The potential exposure quoted assumes no revenue from carbon credits sales. Along with other companies in the market the Group has been actively working with counterparties to resolve these contracts at terms that are mutually beneficial to both parties; some discussions are ongoing and uncertainties remain on the terms to be agreed. Since 31 December 2011 the Group has successfully resolved 95 of its 107 fixed price contracts.

These resolved contracts had a potential exposure to the Group of €74.7 million; 12 contracts remain to be agreed. The directors consider they have made adequate provision in these accounts for the costs that are likely to be borne, however at this stage there can be no certainty that further costs may not arise.

Enquiries:

Consolidated Statement of Financial Position

 at 30 June 2013

Consolidated Statement of Financial Position (continued)

 at 30 June 2013

Consolidated Statement of Comprehensive Income

for the 6 months to 30 June 2013

Consolidated Statement of Comprehensive Income

for the 6 months to 30 June 2013

Consolidated Statement of Changes in Equity

for the 6 months to 30 June 2013

Consolidated Statement of Changes in Equity (continued)

for the 6 months to 30 June 2012

Consolidated Statement of Changes in Equity (continued)

for the year ended 31 December 2012

Consolidated Statement of Cash Flow

for the 6 months to 30 June 2013

Notes to the Consolidated Statement of Cash Flow

Notes

Significant accounting policies

Camco Clean Energy plc (the "Company") is a public company incorporated in Jersey under Companies (Jersey) Law 1991. The address of its registered office is Channel House, Green Street, St Helier, Jersey JE2 4UH. The consolidated interim financial report of the Company for the period from 1 January 2013 to 30 June 2013 comprises of the Company and its subsidiaries (together the "Group").

Basis of preparation

The annual financial statements of the Group for the year ended 31 December 2012 have been prepared in accordance with IFRSs as adopted by the EU ("Adopted IFRSs"). The interim set of financial statements included in this half-yearly report has been prepared in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU. The interim set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the company's published consolidated financial statements for the year ended 31 December 2012. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2012.

This interim financial information has been prepared on the historical cost basis. The accounting policies applied are consistent with those adopted and disclosed in the annual financial statements for the period ended 31 December 2012. The accounting policies have been consistently applied across all Group entities for the purpose of producing this interim financial report.

The financial information included in this document does not comprise of statutory accounts within the meaning of Companies (Jersey) Law 1991. The comparative figures for the financial year ended 31 December 2012 are not the company's statutory accounts for that financial year within the meaning of Companies (Jersey) Law 1991. Those accounts have been reported on by the company's auditors and delivered to the Jersey Financial Services Commission. The report of the auditors was unqualified.

Estimates

The preparation of the interim financial report in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Restatement of prior year

During the year, the Company clarified its accounting policy in relation to the US Government Grant received in 2012. The grant was classified as deferred income within Current liabilities. Subsequent to the clarification, the majority of the deferred income balance has been reclassified to Non-current liabilities.

As part of the December 2012 audited financial statements, any gains and losses in relation to the disposal of our Advisory business were allocated to the Discontinued Operations segment within the Consolidated Statement of Comprehensive Income. In order to ensure all comparisons remained consistent, the Company has reclassified Other Income - gain on sale of investment of €495,000 to (Loss)/ profit from discontinued operation (net of tax).

Notes (continued)

1 Segmental Reporting

Operating segments

The Group comprises of the following reporting segments:

1. Carbon: The Carbon Project Development teams provide CDC consultancy services on carbon asset development, commercialisation and portfolio management.

2. Projects: The Clean Energy Project Development 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.

Inter segment transactions are carried out at arm's length.

Notes (continued)

1 Segmental Reporting (continued)