Energy Developments H1 profit A$9.5 mln
Date: 06-Mar-02
Country: AUSTRALIA
Analysts said the result was below expectations, while progress remained slow on the company's development of new technology to convert household waste to renewable energy was.
"It is pretty much a combination. It looks like there are more delays and the number is lower than people were going for," one analyst said.
Energy Developments shares fell as low as A$6.00 before recovering some ground to be down 3.8 percent at A$6.06 by 11:45 a.m. (0045 GMT) while the broader market was up 0.5 percent.
Energy Developments managing director Paul Whiteman said the company benefitted from the start-up of new projects to generate electricity from landfill gas and savings from existing projects.
Energy Developments' total world-wide operating capacity increased by 30 megawatts during the year to 360 MW.
The company is pursuing opportunities from the development of new technology to produce energy from household water.
It said a char gasifier at the test Whytes Valley Solid Waste Energy and Recycling Facility (SWERF) was not producing the quantity or quality of syngas required, and it was moving to resolve the issues as quickly as possible.
"While the timing of new projects has been influenced by delays with the char gasifier, interest continues for new SWERF plants around the globe," Whiteman said.
The company declared a first half dividend of 2.6 cents per share in line with the first-half dividend a year ago.
Whiteman said directors were reviewing suspension of dividends, due to expected new investment opportunities in the company's traditional energy business and in SWERF related projects.