PEA followers - I have just re-read the press statement for ENE/EnGen transaction. The statement points to a potential tripling of the remote area power market in Australia as core to their investment thesis. This helps tie up with PEA aim of +200mw under management.
From my calculations - ENE has paid about ~10x current EBIT for the EnGen. If you annalise current contracts and the roll-out of fuel saving technology, PEA should target ~$20m EBIT by FY12. This would imply ~55-60 cps for PEA on same valuation methodology (assuming some continued debt pay-down). If the business continues to win more contracts then this valuation will obviously improve.
Given the new mineral projects/EPCM announcements in the mining services space at present, it certainly looks like a growing market.
PEA followers - I have just re-read the press statement for...
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