RED.L Regulatory News (RED)

31 Oct 2007 07:02

Camco International Ltd31 October 2007 Camco International Limited Trading update The Camco Group, a pioneering business in the sustainable energy and low carbonmarkets, is pleased to provide a trading update, including a significantincrease in the contracted project portfolio and is also pleased to report onprogress in its North America practice. Highlights: •The contracted portfolio has grown to 145m from 127m tonnes at end June 2007. •Camco's "in specie" tonnes have grown from 34m to 37m. •Camco's first Carbon Development contract has been signed in North America. •The Energy Business Awards 2007 Asia has chosen Camco as the Silver Award Winner for Excellence in Environmental Markets. •Consultancy revenue continues to increase as per management's expectations. •Good progress has been made on the establishment of new products including the Climate Leaders Joint Venture and (Earth Carbon) voluntary credits from land use projects. Camco will be hosting a visit for analysts and investors over the course of therest of this week in China, where certain projects will be visited andpresentations given by local management. The carbon assets (emissions reductions) business Camco is a leading carbon asset developer with one of the world's largest carboncredit portfolios. Camco works closely with companies to identify and developprojects that reduce greenhouse gas emissions and then arrange for the sale anddelivery of carbon credits to international compliance buyers and into thevoluntary market. Progress since June 2007 month end has been particularly strong in the overallgrowth of the portfolio, and Camco is pleased to announce a further net 14%increase in the overall size of its portfolio. As the portfolio matures Camco continues to reduce the delivery risks and firmup its projections to 2012. Camco takes a conservative position on projectsbased on their early performance. The net increase of 14% is after a write downof 3.4%. This write-down is due to a firmer prediction on registered projectsafter they have passed 1st verification. The progress of Camco's projects through the regulatory process is set out inthe table below. These figures are risk adjusted on a project by project basisaccording to company risk methodologies. PDD 103.3m (end June 105.8m) Validation 40.5m (end June 44.8m) LoA 78.2m (end June 84.4m) Submitted for Registration 11.6m Registered 30.1m (end June 35.0m) 1st verification 11.8m (end June 16.0m) Financed 118.5m (end June 117.0m) Under construction/ constructed) 94.8m (end June 93.4m) Operational 28.5m (end June 33.8m) ERPA 49.4m (end June 46.0m) Recent wins for Camco include a contract to develop a series of wind farms inChina that are expected to produce 3.3m VERs. Camco has also been selected byEvraz Group, one the world's largest steel and mining companies to be theirpreferred carbon developer in Russia, for this project Camco estimate's at least5m tonnes of carbon reduction potential. Camco is pleased with the progress its North America practice has made with acore team established in Colorado. A contract has been signed with a stategovernment to develop a carbon strategy to reduce emissions in the transportsector. Camco is in final negotiations with a large energy company with biomassand coal fired power plants to become the company's exclusive carbon advisor todevelop and implement a carbon plan focused on projects that will reduce GHG andgenerate carbon credits. The consulting practice The consulting practice combines specialist technical, strategic and financialexpertise and experience accrued over two decades to deliver a sustainable lowcarbon society. Camco is uniquely positioned to work with its clients,leveraging its collective experience to turn climate change liabilities intoeconomic, social and environmental assets. The consulting practice consists ofBradshaw, ECCM, ESD and ESD Sinosphere. Recent projects wins demonstrate strong synergies between the consulting andcarbon assets business. These include Jinshan Zero Carbon feasibility study forChina Merchants Group This will be one of the first zero carbon propertydevelopment in China with an estimated 0.5m tonnes carbon saving. Camco Ventures Working to realise a sustainable, low carbon economy, Camco Venturescollaborates with project and technology developers, early stage businesses andinvestor groups to commercialise climate change mitigation technologies,projects and services. Camco provides the management infrastructure, financialstructuring, business planning and technical support required to take each startup business from inception to commercialisation. Camco has recently grouped its venture businesses into three sectors a) projectdevelopment activities b) new Camco Group services and c) low carbontechnologies. Jeff Kenna CEO said, "Business development this quarter has been particularly strong and we aredelighted with the headline growth in the contracted portfolio. We also continueto improve visibility of delivery, reducing the risk of the portfolio. We arealso seeing good synergies from the different parts of the business comingthrough, and great progress in North America." Enquiries: Camco International Limited +44 (0) 20 7256 7979Jeff Kenna, Chief Executive OfficerScott McGregor, Chief Financial Officer KBC Peel Hunt Ltd (Nominated Adviser) +44 (0) 20 7418 8900Jonathan MarrenDavid Anderson Gavin Anderson +44 (0) 20 7554 1400Ken Cronin/Kate Hill Notes to editors The Camco Group is a pioneering business with an outstanding track record in thesustainable energy and low carbon markets. The Group consists of three business segments: The Camco carbon assets business is a leading project developer with one of theworld's largest carbon credit portfolios. We partner with companies to identify, develop and manage projects that reduce greenhouse gas emissions, and then arrange the sale and delivery of carbon credits to international compliance buyers and into the voluntary market. The consultancy practice includes ESD, The Edinburgh Centre for CarbonManagement (ECCM), Bradshaw Consulting and ESD Sinosphere. The businesses combine specialist technical, strategic and financial expertise and experience accrued over two decades. Camco Ventures works with project and technology developers, early stagebusinesses and investor groups to commercialise climate change mitigation technologies, projects and services. Part of this business is the recently announced Climate Leaders' Joint Venture. This information is provided by RNS The company news service from the London Stock Exchange