Shares in Camco Clean Energy slide after update
Shares in AIM-listed Camco Clean Energy fell sharply on Friday after the company reported that a significant decline in the CER price in November had not reversed as of December 13th.
Shares in AIM-listed Camco Clean Energy fell sharply on Friday after the company reported that a significant decline in the CER price in November had not reversed as of December 13th.
On November 29th, the company announced that the CER price dropped significantly.
On Friday, the company reported that this had not reversed with the December 13th CER price currently trading at €0.34, having been €3.96 on June 30th.
The company said that it was focusing on a reduction in central overheads and costs relating to the carbon business with the aim of delivering a material reduction in operating expenses.
So far, Camco Clean Energy reported that it had reduced total cash expense by approximately 50%.
The company was also focused on expanding its revenue from energy projects and other sources to replace revenue previously earned from the CER business.
As of December 31st, the company had adjusted net cash of €7.13m which had reduced to €5.20m as of February 15th 2013 after settling a number of liabilities relating to 2012 shortly after the period end.
The balances include cash held by the company's US biogas asset but exclude the cash held within the Camco South East Asia joint venture of €5.5m as of December 31st net attributable to the company.
Scott McGregor, Chief Executive Officer of Camco Clean Energy, commented: "I'm pleased to report we have made good progress towards re-structuring the company to stabilise at a low cost base and continue our growth in our energy projects business.
"The company has faced a very tough period over the past few months where the market shock of a collapse of the CER [Certified Emission reduction] carbon price has greatly reduced our core source of revenue.
"As a consequence we are accelerating our focus on our energy projects business faster than expected and have significantly reduced the operating costs of the Company. Our China team will continue to service our emission reduction projects. We are now fully focussed on development in our growth markets of North America and Africa and overseeing the South East Asian joint venture activities.
He added: "I would like to thank all our staff and project partners who have worked hard to see us through this difficult period and rapidly transform the Company."
Camco Clean Energy's share price was down 10.14% to 1.55p at 09:51 on Friday.
MF