I'm presuming here that the mechanical bits depreciate (but a fair bit of the capital is non depreciating tower & foundation), so the depreciation has to reflect the approaching cost of replacing/repairing turbine, so if that replacement/repair cost is getting cheaper, then depreciation isn't such a bad thing. The actual cash spend to continue to generate may well be cheaper than what is implied in depreciation schedule. Aren't businesses always trying to exaggerate their depreciation as much as they can?! Eg. if blades are depreciated over 10yrs, but a cheap epoxy that extends life for 5 yrs, then there was too much depreciation, is that tax man losing to tech innovation? Accountants, help us please!
IFN Price at posting:
80.0¢ Sentiment: Hold Disclosure: Held
