BBP 0.00% 9.5¢ babcock & brown power

I have been staying out of this, as for sure if I say they can...

  1. 588 Posts.
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    I have been staying out of this, as for sure if I say they can make it they will be DEAD on Friday.

    Short term the earnings should increase with the Varanus island mess having taken about 20 million out of this years earnings(18 million after insurance up to Dec) and 5 months of Redbank outage - lets say another 5 million income. Also the two onerous loss making contracts have gone. On 12 January 2009, BBP signed a binding agreement for the sale of all the assets of Alinta EATM Pty Limited. The sale will realise cash proceeds of approximately $15 million and will release $20 million of working capital.The cash flow impact of the latest transaction is not detailed.There is also a further settlement of up to 13 million due From the Kwinana sale in the fourth quater.

    Longer term the less favourable gas and electricity contracts will expire. Approximately 15 % of Autralian electricity goes into Alumina production - another China recovery factor long term.

 
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