Alternative Energy - Vir

[shasta]

VIRIDIS CLEAN ENERGY GROUP (VIR):

http://www.viridisenergy.com/default.asp?contentID=32

Shares on Issue: 187m

Market Capital: ~$130m @ 70c

Distribution: 10cps (Div Yield ~14%)

June 30 is cut off date for next 5cps distribution

Cash on Hand: ~$44m (@ Dec 07)

Debt/Gearing Ratio: ~65%

NB, VIR is a stapled security, is cashflow positive & profitable

Overview

http://www.viridisenergy.com/images/dotline1.gif


Viridis Clean Energy Group is an energy infrastructure fund that invests in a diversified global portfolio of clean energy assets with the objective of delivering attractive cash equivalent distributions to investors with long-term growth.
The Fund invests in operating assets utilising commercially proven technologies.
The principal investment focus is on assets that generate electricity or other consumable energy produced from renewable, waste or inherently low emission energy sources, including wind, hydro, biomass, geothermal, solar, waste fuel, coal seam methane and natural gas.

The Fund has adopted a set of Investment Guidelines that describe the set of qualifying assets in which Fund investments are made. The key characteristics of qualifying assets are set out below.

Nature of investments
Equity, debt and hybrid investments in qualifying assets (as per the other sections of these guidelines).
Industry sector
Clean energy generation, storage, transportation and supply. Focus on electricity generation.
Technology
Proven technology, with demonstrated operation in commercial service.
Energy source
Environmentally preferred fuels and technologies.
Asset location
OECD countries and other selected countries with acceptable sovereign risk.
Commercial structure
Secure contract arrangements and/or market access regime for fuel supply and energy off-take.
Asset maturity
No development risk. Construction participation is only acceptable if construction risk is fully covered by guarantees from creditworthy counter-parties. Satisfactory operations and maintenance arrangements in place.
While the Fund primarily targets equity investments in qualifying assets, it also considers debt or hybrid investments that meet its risk and return requirements.
http://www.viridisenergy.com/images/top.gif Top (http://www.viridisenergy.com/default.asp?contentID=3#top)

Portfolio Diversification

http://www.viridisenergy.com/images/dotline1.gif A key strategic objective of the Fund is to achieve a high degree of portfolio diversification. This is intended to assist in achieving attractive investment returns with low volatility over the medium and long term.
A characteristic of many renewable energy sources is variability in energy output:



Wind speeds vary constantly; wind farm energy output is therefore subject to variation over the short term (hourly/daily) and typically exhibits strong seasonality (winter: high winds – summer: low winds).
Biomass availability can be subject to seasonal variation.
Hydro output is affected by water releases from storage reservoirs (due to seasonal, irrigation or flood control requirements) and by rainfall patterns.
Solar energy is subject to variable output – day vs night and sunny vs cloudy weather conditions.
Process gas availability can be subject to disruption or cyclicality based on the underlying industrial processes from which it is produced.
The impact of this inherent variability at the individual asset level can be substantially mitigated by investing in a diversified portfolio. By spreading its investments across a number of geographic regions with different climatic and seasonal conditions and across a number of technologies and fuel sources, the Fund will seek to enhance stability in cash flows and investment returns.
Portfolio diversification is also expected to contribute to stability in investment performance by reducing the impact of other asset specific factors, including:


plant and equipment outages and breakdowns
energy price variations
counterparty risk, and
regulatory changes.
VIR's Investments/Projects:

UK Wind
Germany Wind
UK Landfill Gas
USA Landfill Gas


Heres the link for more detail...

http://www.viridisenergy.com/default.asp?contentID=6

[AMR]

For a while there I thought you had sold off OEL to get into Virgin Blue!:eek:

From my understanding the NZ govt passed some form of legislation against stapled securities a while back during the AIA saga...do you know how it affects this?

Here's the chart. It could give off an entry soon.
http://www.sharetrader.co.nz/picture.php?albumid=5&pictureid=16

[shasta]

For a while there I thought you had sold off OEL to get into Virgin Blue!:eek:

From my understanding the NZ govt passed some form of legislation against stapled securities a while back during the AIA saga...do you know how it affects this?

Here's the chart. It could give off an entry soon.
http://www.sharetrader.co.nz/picture.php?albumid=5&pictureid=16

AIA was about ultimate ownership/control issues, i don't know why the Govt had an issue with it (in general).

I've held BBI before & they are the same thing.

I've got in on FA, & assuming the TA will follow :confused:

[shasta]

AMR

How does today's increase to 72.5c look on the chart?

[COLIN]

Shasta: Thanks for drawing attention to this one. I've been looking around for a company like this and, after examining their entrails, I decided I liked what I saw, so bought a few at 71c - showing a paper profit already!
And they actually pay dividends. Not that that is a prime consideration with me, but its handy to have a trickle of cash to pay for the groceries. I don't expect it to provide too many thrills, but one needs a few basic stocks in one's portfolio.

AMR: The Cullen/AIA stapled securities hurdle thing should be irrelevant. There are plenty of Australian companies doing this. Michael Cullen might believe he is a rival to King Canute but even he cannot change Australian law.

[AMR]

It's a buy! So many great stocks, so little capital.

[shasta]

Shasta: Thanks for drawing attention to this one. I've been looking around for a company like this and, after examining their entrails, I decided I liked what I saw, so bought a few at 71c - showing a paper profit already!
And they actually pay dividends. Not that that is a prime consideration with me, but its handy to have a trickle of cash to pay for the groceries. I don't expect it to provide too many thrills, but one needs a few basic stocks in one's portfolio.

AMR: The Cullen/AIA stapled securities hurdle thing should be irrelevant. There are plenty of Australian companies doing this. Michael Cullen might believe he is a rival to King Canute but even he cannot change Australian law.

I bought BBI a while back for the same reason i like VIR, the dividend yield @ 14% is ridiculous, & shows how undervalued it is. (I mean a 70c shares that pays 10c a share!)

Have you read the recent ann re the development fund?

Interesting potential for VIR moving forward.

A few other "Alternative Energy" companies worth a look.

EDE*, CLQ*, CNM, PEA, EGL & a high spec in EVM

* See relevant threads

CNM is the tidal wave company looking at the NZ West Coast that was on the news a few days back.

[Dr_Who]

CNM interest me.

Shasta, what is the cost of building the wave generator as oppose to a wind turbine. How much energy does it produce compare to wind?

[shasta]

CNM interest me.

Shasta, what is the cost of building the wave generator as oppose to a wind turbine. How much energy does it produce compare to wind?

I don't know to be honest!

VIR have profitable wind projects in Germany & the UK (check latest presentation to see the debt tiered to each project).

CNM interest me too, largely as they aren't just a wave tech company.

They aren't looking to be generating revenue until at least 2010, so i'm not sure if they have done the scoping/feasibility studies yet...

[COLIN]

Have you read the recent ann re the development fund?



Yes.
I must admit that VIR's "de-risking" approach to their investments is very reassuring.

[bear]

I don't know to be honest!

VIR have profitable wind projects in Germany & the UK (check latest presentation to see the debt tiered to each project).

CNM interest me too, largely as they aren't just a wave tech company.

They aren't looking to be generating revenue until at least 2010, so i'm not sure if they have done the scoping/feasibility studies yet...

thanks shasta for also bringing this one to my attention.

The presentations and announcements look very appealing. Particularly interested in the landfill gas component. Wind is good but can be fickle although in Eurpoe the Germans are probably the leaders in technology.

The development fund aspect is a major selling point for this one.

Major concern is the high dividend (as its not that kind of stock), and large amount of cash just earning interest.

May be too conservative to extract the best returns in the current market but then again the company charter is strict.

As Colin said probably no thrills but a solid performer

Bear

[shasta]

thanks shasta for also bringing this one to my attention.

The presentations and announcements look very appealing. Particularly interested in the landfill gas component. Wind is good but can be fickle although in Eurpoe the Germans are probably the leaders in technology.

The development fund aspect is a major selling point for this one.

Major concern is the high dividend (as its not that kind of stock), and large amount of cash just earning interest.

May be too conservative to extract the best returns in the current market but then again the company charter is strict.

As Colin said probably no thrills but a solid performer

Bear

Bear

If you want one with a bit more action have a look at EGL

VIR is cashflow positive & can easily fund the dividend payments, not that i'll be taking the cash. (DRP has a 2.5% discount)

[bear]

Bear

If you want one with a bit more action have a look at EGL

VIR is cashflow positive & can easily fund the dividend payments, not that i'll be taking the cash. (DRP has a 2.5% discount)


fair call Shasta - just don't like idle cash and large divis:)

may dip into my idle cash looking for a home ;)

i will check out EGL

cheers

Bear

[shasta]

fair call Shasta - just don't like idle cash and large divis:)

may dip into my idle cash looking for a home ;)

i will check out EGL

cheers

Bear

Nice wee movement today (no great volume though) but up 4c to 75c.

Drops the divvie yield to 13.33%. :cool:

Nice Alternative Energy play for those looking for a stable, profitable, cashed up clean green company, involved with wind farms...

And it has gas too...:eek:

Landfill gas, & its highly profitable! :D

[Corporate]

Nice wee movement today (no great volume though) but up 4c to 75c.

Drops the divvie yield to 13.33%. :cool:

Nice Alternative Energy play for those looking for a stable, profitable, cashed up clean green company, involved with wind farms...

And it has gas too...:eek:

Landfill gas, & its highly profitable! :D

Shasta, you say they are profitable. The FS that i've looked briefly at all show loss's

[shasta]

Shasta, you say they are profitable. The FS that i've looked briefly at all show loss's

Excluding the non reoccuring items/write downs they were :D

[Corporate]

Excluding the non reoccuring items/write downs they were :D

Down again. Closed at 69c, 14.35% Divi, looks pretty good

[shasta]

Down again. Closed at 69c, 14.35% Divi, looks pretty good

30 June is the cut off for the FY distribution of 5cps.

VIR is very cheap, & flush with cash :D

I mean even at $1 its a 10% yield!

[Corporate]

30 June is the cut off for the FY distribution of 5cps.

VIR is very cheap, & flush with cash :D

I mean even at $1 its a 10% yield!

Yeah i'm thinking of making a play. What date is the distribution due to be paid out?

[shasta]

Yeah i'm thinking of making a play. What date is the distribution due to be paid out?

Early September (remember we are talking year end accounts etc), though ex date is June 30 (roughly?)

Also, have a look at BBI, they have been sold down due to BNB suffering from a possible breach of banking convenants, BBI @ 85.5c with a 15c distribution = 17.5% yield.

Like VIR they generate more cashflows than profit (due to non cash write downs). Interest times cover is excellent & there debt has a long time until maturity.

In fact the whole BNB group looks cheap...BBP, BBW, BBI

[shasta]

VIR - Distribution details

http://www.stocknessmonster.com/news-item?S=VIR&E=ASX&N=300298

[upside_umop]

hey shasta,

just curious with respect to these write downs..

what are they writing down exactly? and why are others like BBW doing it aswell?

[shasta]

hey shasta,

just curious with respect to these write downs..

what are they writing down exactly? and why are others like BBW doing it aswell?

The half year results reported a net loss of $8.7m, however...

EBITDA was a profit of $14.5m (on revenue of $47.6m)

1. $2.6m was written off due to "third party costs associated with unsuccessful transactions".

These are "one off" costs on projects that did not proceed/meet VIR's investment criteria.

2. $10.2m was Amortisation of Intangibles - basically an accounting entry.

Page 11 is a better handle of how VIR are going...

http://www.viridisenergy.com/downloads/releases/VCEG%20half%20year%20results%20presentation%20Febr uary%202008.pdf

[underDOG]

World's biggest solar farm at centre of Portugal's ambitious energy plan
and World's first commercial wave farm is being assembled near Porto

http://www.guardian.co.uk/environment/2008/jun/06/renewableenergy.alternativeenergy

EU renewable league
Top

Sweden 2005 39.8%, target by 2020 49%
Latvia 34.9%, target 42%
Finland 28.5%, target 38%
Austria 23.3%, target 34%
Portugal 20.5%, target 31%
Bottom
Cyprus 2.9%, target by 2020 13%
Netherlands 2.4%, target 14%
Ireland 3.1%, target 16%
Netherlands 2.4%, target 14%
Belgium 2.2%, target 13%
UK 1.3%, target 15%

[shasta]

World's biggest solar farm at centre of Portugal's ambitious energy plan
and World's first commercial wave farm is being assembled near Porto

http://www.guardian.co.uk/environment/2008/jun/06/renewableenergy.alternativeenergy

EU renewable league
Top

Sweden 2005 39.8%, target by 2020 49%
Latvia 34.9%, target 42%
Finland 28.5%, target 38%
Austria 23.3%, target 34%
Portugal 20.5%, target 31%
Bottom
Cyprus 2.9%, target by 2020 13%
Netherlands 2.4%, target 14%
Ireland 3.1%, target 16%
Netherlands 2.4%, target 14%
Belgium 2.2%, target 13%
UK 1.3%, target 15%

VIR results out today...5c distribution maintained (10c FY)

Page 10 of the Results Presentation outlines the Loss*

Results Presentation:
http://www.stocknessmonster.com/news-item?S=VIR&E=ASX&N=304072[/URL]

Full Year Results:
http://www.stocknessmonster.com/news-item?S=VIR&E=ASX&N=304071 (http://www.stocknessmonster.com/news-item?S=VPE&E=ASX&N=167952)

Full Year Accounts & Appendix:
[URL]http://www.stocknessmonster.com/news-item?S=VIR&E=ASX&N=304070

[shasta]

VIR results out today...5c distribution maintained (10c FY)

Page 10 of the Results Presentation outlines the Loss*

Results Presentation:
http://www.stocknessmonster.com/news-item?S=VIR&E=ASX&N=304072

Full Year Results:
http://www.stocknessmonster.com/news-item?S=VIR&E=ASX&N=304071

Full Year Accounts & Appendix:
http://www.stocknessmonster.com/news-item?S=VIR&E=ASX&N=304070


VIR - Open Briefing & CEO FY09 Outlook

http://www.stocknessmonster.com/news-item?S=VIR&E=ASX&N=305517

[shasta]

VIR - Open Briefing & CEO FY09 Outlook

http://www.stocknessmonster.com/news-item?S=VIR&E=ASX&N=305517

VIR - Hurricane Ike Update

http://www.stocknessmonster.com/news-item?S=VIR&E=ASX&N=305641

[Corporate]

Shasta - are you still keeping an eye on VIR? Dividend yield now currently 20% :rolleyes:

[shasta]

Shasta - are you still keeping an eye on VIR? Dividend yield now currently 20% :rolleyes:

Yeah, i'm tracking a few Alternative Energy companies...

VIR has debt & i bailed out when debt became a 4 letter swear word :D

[Corporate]

Yeah, i'm tracking a few Alternative Energy companies...

VIR has debt & i bailed out when debt became a 4 letter swear word :D


Looks like that was a good move in hindsight :D.....jeez i wonder if tomorrow will be like last friday :eek:

[bear]

Nice rise today (28%) after several months of being bashed up..... would expect a please explain later today

yeild still very good, debt manageable, growth area being green energy, special distribution soon to be paid

recently topped up so happy

bear

[bear]

trading halt ... so someone must have known something - higher than usual volume and nice spike

hopefully good announcement before Monday and we see levels re-testing 50c

Bear

[Thumpa]

16 April 2009
Kate Kidson
Australian Stock Exchange Limited
Level 45, South Tower, Rialto
525 Collins Street
Melbourne VIC 3000
Dear Kate

Viridis Clean Energy Group (ASX:VIR) - Request for trading halt

Viridis Investment Management Limited (“VIML”) as responsible entity of Viridis Clean Energy Group (“Viridis”)
hereby requests, under Listing Rule 17.1, ASX to grant Viridis a trading halt.
The trading halt is requested to enable VIML to:
(a) finalise and announce the results of the board review process which Viridis announced on 27
February 2009; and
(b) respond adequately to a price query received from ASX today. This response will include
information about an unsolicited indicative, non-binding and confidential proposal for the
acquisition of Viridis and its manager which has been received by VIML.
VIML is not aware of any reason why the trading halt should not be granted.
VIML requests that the trading halt remain in place until the earlier of 9.30am on Monday 20 April 2009 or when
the information referred to above is provided to the market.
Yours faithfully
Duncan Jewell
Company Secretary

Hi Bear - good luck for Monday ! (Disc - Holding VIR ) .

The volume spike was too tempting for me and before buyers remorse could set in along comes the trading halt , so shall see what happens.Company looks interesting and I guess add's a little moral Karma to the portfolio.

http://i167.photobucket.com/albums/u150/soundzgoodgood/VIR.png

[AMR]

Woah, what just happened? That;s a huge spike