BBP has positive cash flow but the 330 to 340 is before interest and maint. capex - not profit . They have great assets but still way too much debt- particularly the outstanding BNB 375 million loan . The gas generators are valuable, the alinta retail is a growth asset but the coal fired power stations may or not be orphans depending on the ETS system compensation.
There are many options of what could transpire but BBP carrying on long term as is is not one of them. Looking at the possibilities AGL is likely to be serious and could for instance offer to buy the Energy markets - the old Alinta back at a discount, this may be enough to allow the rest to carry on- or even make a sript offer for the whole company say 20 bbp for one AGL- this could be the strategic transaction. A lot depends on the banks.
BBP Price at posting:
5.2¢ Sentiment: LT Buy Disclosure: Held
