Trading Emissions plc posts 19.2 mln pound H2 liquidation loss
By Michael Szabo
LONDON, March 24 (Reuters) - Clean energy fund Trading Emissions plc (TEP) said asset disposals and writedowns related to the winding up of its business had helped push it into a 19.2 million pound ($31.7 million) loss for the second half of 2013.
Shares in London-listed TEP fell 8 percent to 14.62 pence on Monday after the firm said its net asset value had fallen by 26 percent to 22.38 pence per share in the six months ended Dec. 31, 2013.
"It will be no surprise to shareholders that the private equity and carbon investments are becoming progressively more difficult to sell," the company said in its results on Monday.
TEP, a fund that invests in renewable energy projects and United Nations-backed carbon credits, has been badly hurt by tumbling carbon prices and ongoing issues at several of its facilities.
The struggling firm began selling assets and paying out investors after shareholders voted in December 2012 to wind up the fund.
Its shares have plunged by 83 percent from their 2006 peak, while carbon prices have collapsed by 99 percent since 2008.
TEP said liabilities related to its recently sold portfolio of United Nations carbon credits more than quadrupled to 1.7 million pounds in the second half of 2013 due to a change in its valuation methodology.
TEP announced on March 10 it had signed a deal to sell its existing stock of Certified Emissions Reduction (CER) units and portfolio of 24 credit purchase contracts, known as Emissions Reduction Purchase Agreements (ERPAs), to an unnamed buyer for an undisclosed sum. Continuación...