Trading Emissions soars after making case for the defence

AIM-listed investment company Trading Emmissions (TRE) has sought to reassure investors following a year in which the stock has lost 81% of its value.

TRE's main strategy is to buy "emissions assets", these can range from projects designed to reduce greenhouse gas emissions to energy efficiency solutions. The price of these permits has been falling significantly recently, leading to a 30% drop in TRE's net asset value (NAV) between June and October.

In a statement today TRE says it notes "notes the recent material fall in the share price of the ompany, and the price of carbon related securities."

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In its defence Trading Emissions issues an updated NAV position.

It's group NAV per share was 76.7p as of 6 December, down from 121.08p at the end of June. This is a drop of 37%, implying the rate of decline has slowed.

It also says it values its private equity portfolio at £149.9m (although this was the June figure). TRE's carbon portfolio stands at £16m as of the 6 December with cash balances at £50.1m. The cash position is expected to improve which is expected to grow after a in early 2012 after a loan repayment to the firm from one of its portfolio companies.

TRE says it has "sufficient cash resources to meet its current obligations and as previously announced the board is overseeing the orderly realisation of the assets of the Company".

This statement saw the share price climb 20% by 09:45 to 22.24p.

BS