Indian clean energy specialist Greenko (GKO) has continued to benefit from the gulf between power demand and reliable power supply in that country's rapidly expanding economy.
The Aim-listed group saw half-year revenue soar after having grown its wind and hydro power generation by nearly 88 per cent year-on-year to 1,225GWh. The company has made further progress towards reaching its targeted operating capacity of 1000MW by 2015, too, with six hydro projects - representing a capacity of 188.6MW - now under construction. An additional three wind farms have also been commissioned - these have a combined 300MW of capacity and are due to be operational by 2015.
Significantly, management has also made good progress with cutting the cost of the fairly hefty debt burden that has accumulated to fund capacity expansion. That was achieved through a $550m (£350m) five-year US bond issue and October's agreement of a $125m loan from EIG Global. Moreover, with an an operating capacity of 715MW - and with increasing confidence in the predictability of cashflows - management is considering paying a dividend at the full-year stage.
Broker Investec Securities - which, at present, is still publishing forecasts in euros (the group switched its reporting currency to dollars with these figures - expects adjusted full-year EPS of 8.4¢ (6.8p) from 4.5¢ in 2014, rising to 15.4¢ in 2016.
GREENKO GROUP (GKO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 132p | MARKET VALUE: | £206m | |
| TOUCH: | 133-138p | 12-MONTH HIGH: | 192p | LOW: 130p |
| DIVIDEND YIELD: | 0.0% | PE RATIO: | 21 | |
| NET ASSET VALUE: | 180¢* | NET DEBT: | 139%† | |
| Half-year to 30 Sep | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2013 | 36.7 | 15.8 | 5.5 | nil |
| 2014 | 82.7 | 28.8 | 9.6 | nil |
| % change | +125 | +82 | +72 | - |
Ex-div: - Payment: - *Includes intangible assets of £148.8m, or 96p per share £1=$1.57 †Includes $27.7m in bank deposits | ||||
