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Camco upbeat on longer-term outlook for carbon

Last updated: 07:35 03 Jan 2012 GMT, First published: 08:35 03 Jan 2012 GMT

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Clean Energy and carbon emissions specialist Camco International (LON:CAO) today forecast a favourable future for the carbon market despite recent price falls.

Managing director Scott McGregor, said that while the lower carbon price would affect it short-term, it had seen an acceleration in the signing of new contracts in the energy efficiency sector and had also grown the post 2012 portfolio.

"We view a favourable future for the carbon market in the medium and long term" he said although he added depressed current prices in the EU market will impact the company's near term performance.

The group recently signed new contracts with Anhui Conch Cement, the largest cement producer in China that will see Camco provide assessment and monitoring services for 37 individual energy efficiency projects at cement production facilities owned by Conch.

The post-2012 portfolio saw an overall increase to 39.9 million tonnes in specie and 27.5 million revenue share tonnes.

But due to the carbon price reduction at year end, a fair value revision of accrued income will be required in the company's 2011 financial statements, Camco said.

 In 2010, accrued income not subject to a fixed price contact was fair valued at a carbon price range of between €11.16-11.39 but the 2011 year end price range is expected to be €6.20-6.94.

The written down value is expected to be sufficient to cover accrued costs and payments on account received.

Improvements in the carbon price post year end would see this fair value accrued income adjustment reversed, Camco added. The group had a cash balance of about €11.3 million at end December.

Camco also announced the appointment of  ex-Shell veteran Zainul Rahim to its board as the nominee of Malaysian group Khazanah Nasional, which owns a 23.14% stake.

 

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