HOT PROFITS FOR SOLAR COMPANY
Written on the 24 October 2011
A SOLAR technology company in Yatala has helped its ASX-listed owner record net FY11 profit of $5.1 million.
While CBD Energy’s (ASX:CBD) overall net profit was down 35.4 per cent per cent from $7.9 million on the corresponding period (due to tax credit of $3m), revenue escalated from $44.8 million to $164.7 million.
The result is attributed to its solar energy business eco-Kinetics’ increased market share and revenue.
Despite the effects of government policy uncertainty in the renewable energy sector and the end of the solar program, eco-Kinetics boosted local and international sales.
CBD Energy acquired eco-Kinetics in 2010 for $13 million and the company has continued to design and manufacture from its Gold Coast base.
CBD has also advised it had been appointed to participate in the management of AusChina Energy Group, in which CBD is a partner with two of China's biggest renewable energy companies, Datang and Tianwei.
AusChina's ambitions are to capture a third of Australia's renewable energy market over the next eight years. CBD will be paid a management fee of 0.5 per cent per annum of the value of AusChina's assets.
Since the establishment of AusChina, CBD has worked with its partners to identify new development sites and existing wind farms for acquisition, as well as arranging acquisition finance.
CBD's partners in AusChina are subsidiaries of larger Chinese companies ranked in the Fortune Global 500 and this is the first venture outside China for both partners.
CBD has also progressed in its solar manufacturing joint venture with Tianwei, with November 2012 a target date to commence production.
The company says the operation, together with its current production of solar inverters through subsidiary Captech, will make CBD Australia's only fully-integrated solar equipment manufacturer.
CBD managing director Gerry McGowan is overseas and could not be contacted for comment.