Proactive Investors - Run By Investors For Investors

Active Energy bullish on its forestry and biomass future but losses widen

The loss before tax for the six months was US$1.9mln, compared to a loss of US$339,000 in the same period last year
Active Energy bullish on its forestry and biomass future but losses widen
The firm is focused on biomass and forestry management

Active Energy Group PLC (LON:AEG), now focused on forestry management and biomass fuel products, is confident on its growth opportunities, it said  when posting its latest half year results.

Political events in Turkey disrupted sales in the six months to end June and only two partial loads of woodchip were shipped, compounded by the fact that the firm is scaling down on all its woodchip activity in Ukraine.

READ: Active Energy boosted by CoalSwitch partnership

The loss before tax for the six months was US$1.9mln compared to a loss of US$339,000 in the same period last year, on revenues, which fell to US$1.3mln from US$13.4mln a year earlier.

The period also saw the group raise US$14.15mln to fund its plans and form two affiliate companies to hold AEG's current and future CoalSwitch and Timberlands assets.

Building biomass plants in Asia

A milestone moment was reached last month when a deal  was struck with California-based renewable energy group Lumino Capital to build eight plants across Asia, targeted to start in the first half next year.

AEG’s biomass affiliate will build and run the plants, which will produce 1.5 mln tonnes of product a year,  while Lumino will source the biomass feedstock as well as providing finance.

At the Timberlands business, focused on Newfoundland and Labrador, it is in advanced negotiations to gain what's called a Crown Timber Licence (CTL) and rolling 20-year Forestry Management Agreements for two districts initially.

READ: Active Energy and renewables group Lumino to build CoalSwitch biomass plants in Asia

These grants will allow Timberlands to begin harvesting and using up to 140,000 solid cubic metres of wood a year.

On the possible sale of the Ukraine assets, the group said negotiations with former chief operating officer Matteo Girlanda had now ceased and the board is "evaluating" the optimal path forward.

"We are entering a highly active period that we hope will witness significant value triggers that will assist investors and commercial partners to appreciate the true value of both components of our business," the group said in today's statement.

View full AEG profile View Profile

Active Energy Group PLC Timeline

Related Articles

oil and gas operations
April 19 2018
The first two potential new wells will be drilled in around 45 days, and investors will be keen to see the results
oil and gas operations
February 07 2018
Touchstone shares advanced as a 10-well programme was launched in Trinidad
oil and gas operations
June 04 2018
“I believe that the ENEO issue will be solved as VOG management has prioritised this matter and is focused on achieving a result in the shortest possible timeframe,” chief executive Ahmet Dik

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use