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

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021