"GREEN DEALS: Solar saviour * Published 5:34 AM, 26 Aug 2010 *...

"GREEN DEALS: Solar saviour

* Published 5:34 AM, 26 Aug 2010
* Updated 7:36 AM, 26 Aug 2010

Renewable energy group CBD Energy has delivered its first ever profit result for its long suffering shareholders, as CEO Gerry McGowan described them on Wednesday, with the recently purchased eco-Kinetics solar group proving the driving force for a dramatic turnaround in its fortunes. CBD delivered a net profit of $8.5 million, as its EBITDA swung from $2.9 million in the first half to a $6.2 million profit in the 2nd half. The company expects to be cash-flow positive in the current financial year, may not need to tap shareholders for more money, and could entertain a dividend.

CBD paid $13 million in cash and equity, plus earn outs, for eco-Kinetics last year, and it delivered revenue of $44 million for the fiscal year well above expectations. McGowan says the company installed 3,900 solar systems in 2009/10 and expects to install more than 10,000 in the current fiscal year. McGowan says the business is generating a profit margin of around 25 per cent.

McGowan says CBD intends to go ahead with the construction of the 39MW Adjungbilly wind farm in southern NSW next year, in partnership with Datang, the Chinese energy giant. Datang will provide 60 per cent of the equity for the project, while the China Development Bank will provide the debt. This means that CBD does not need to obtain a power purchase agreement, can bank the renewable energy certificates until the price recovers, and can short-circuit the refusal of Australian banks to finance renewable projects with Chinese technology.

CBD has signed an exclusive arrangement with Datang and its Chinese solar supplier Tianwei, who have been given instructions by the Chinese government to go forth and multiply in overseas markets. CBD says 600MW of their planned 800MW of renewable energy projects by 2013 will take place in Australia, all bankrolled by the China Development Bank. CBD is now in the process of identifying a suitable pipeline of projects."

http://www.climatespectator.com.au/commentary/green-deals-solar-saviour