Well I was not suggesting buying the stock currently only that further research was required. A 70% profit margin on each wind generator sounds very high if ? that was the case funding further projects you would have thought would be easy.
Some of the announcements appear to conflict with comments made here.
PACIFIC HYDRO LIMITED 2002-09-30 ASX-SIGNAL-G
HOMEX - Melbourne
+++++++++++++++++++++++++ Leading renewable energy company Pacific Hydro Ltd (ASX: PHY) today announced the completion of contracts for construction of the 52.5MW Challicum Hills Wind Farm at Buangor, near Ararat in western Victoria.
The Company also announced the completion of a long term power purchase agreement for the 30MW Yambuk wind farm, which is part of the Portland Wind Energy Project in south west Victoria. Both wind farms are expected to be operational by mid 2003.
Pacific Hydro expects the wind farms will produce approximately 225,000 megawatt hours of renewable energy per year. This would be enough pollution-free electricity to supply the needs of more than 42,000 average Victorian homes.
The wind farms will abate over 290,000 tonnes of greenhouse gas emissions each year, which is equivalent to eliminating the annual emissions from over 65,000 cars.
Leading energy retailer Origin Energy has signed long term power purchase agreements to buy the energy and renewable energy certificates generated by the wind farms, providing a stable revenue stream for both projects. Origin Energy has also secured an option of taking a future equity stake of 50% in the Challicum Hills project.
The Challicum Hills wind farm will consist of 35 wind energy generators which will be the first supplied under the 600MW agreement secured by Pacific Hydro with leading Danish wind generator manufacturer NEG Micon. The role of turnkey contractor for the development will also be completed by NEG Micon.
The Yambuk wind farm consists of 20 wind energy generators and will also be part of the frame agreement. The development of this project is conditional upon the Portland Wind Energy Project gaining Federal Government environmental approval.
"This is the first step in a process that will ultimately see a vibrant local wind energy manufacturing industry established in regional Victoria," said Jeff Harding, Pacific Hydro Managing Director.
"These projects continue Pacific Hydro's track record of successful project development and demonstrate that our business models and development processes are sound."
"We are delighted to continue our relationship with Origin Energy and are encouraged by their commitment to and confidence in Pacific Hydro and the renewable energy sector."
"The critical mass provided by the Portland Wind Energy Project and Challicum Hills Wind Farm will underpin the NEG Micon manufacturing program."
"The Challicum Hills development will provide a significant boost to the local economy from construction through to operations, maintenance and local tourism. Already one regionally based business, Portland engineering company Keppel Prince, is expanding its tower fabrication facilities as a result of this project," said Mr Harding.
"These power purchase agreements continues the excellent working relationship between Origin Energy and Pacific Hydro that began with the Codrington wind farm," said Peter Vines, Origin Energy Executive General Manager Retail.
"These contracts clearly demonstrate our commitment to growing Australia's renewable energy sector. The 100 per cent clean energy from the wind farms will supply our growing Green Earth customer demand for clean electricity. Any energy generated surplus to our Green Earth demand will assist in meeting our Mandatory Renewable Energy Target obligations," said Mr Vines.
Both wind farms will be connected to the national energy market via the local distribution network owned and operated by Powercor Australia.
For further information, please contact,
Jeff Harding, MANAGING DIRECTOR Roy Adair, CHIEF OPERATING OFFICER Andrew Richards, MARKETING MANAGER Telephone: (03) 9620 4400 Facsimile: (03) 9620 4433
COMPANY BACKGROUND - 30 SEPTEMBER 2002
AUSTRALIA'S LEADING RENEWABLE ENERGY COMPANY
Since listing on the Australian stock exchange in 1993, Pacific Hydro has grown to become Australia's leading renewable energy company. Investor interest in renewable energy has helped drive the company share price and market capitalisation of just $5 million in 1995 to a point where Pacific Hydro is now an ASX 200 company.
STRONG FINANCIAL PERFORMANCE
This year the Company announced its seventh successive year of profit growth with an after tax profit of $31.9 million, a 19% increase over the $26.9 million recorded last year.
OTHER FINANCIAL HIGHLIGHTS INCLUDED:
* Total operating revenue for continuing activities amounted to $63.5 million, an increase of 24% on the $51.3 million recorded last year (consolidated for 50% of the Philippine associate).
* Basic earnings per share increased by 15% over the previous year to 24.9 cents.
* Net assets increased from $152 million to $181 million.
* Cash and undrawn facilities amount to $57 million.
Pacific Hydro secures long term power sales contracts with financially sound companies on all projects developed by the Company, ensuring continued financial stability.
IMPRESSIVE TRACK RECORD
Pacific Hydro continues to build on its strong track record of successful project development. Key achievements include:
* Developing the 30MW Ord River hydro, which is the largest renewable energy project developed in Australia for over 20 years. * Developing the 70MW Bakun Hydro Power Plant which is the largest international energy project ever developed by an Australian company. Development of Australia's first non government wind farm at Codrington in south west Victoria.
FUTURE DEVELOPMENTS
The Company continues to maintain a balance between development projects in Australia and overseas.
Australian projects on-track to commence construction shortly include:
* The first stage of the 180MW Portland Wind Energy Project, approved by the Victorian State Government on 15 August 2002.
* The 52.5MW stage one of the recently approved 75MW Challicum Hills Wind Farm near Ararat in Victoria.
In addition to this the Company is currently pursuing over 2,000MW of new wind development opportunities throughout Australia.
Overseas projects under development include:
* Bakun Supplemental Water Project, involving the diversion of additional water through the existing Bakun Scheme in the Philippines. This is scheduled for completion in 2004 and will add 110GWh to current generation annually.
* La Higuera, Chile, a 240MW run-of-the-river hydro development planned to commence construction in 2003.
