NZX shares slide as 'blue sky' carbon profits evaporate
Shares in NZX Limited have taken a hit on the company’s own exchange today after it slashed $19.9 million from the expected sale proceeds of its carbon trading business.
At 3pm NZX shares were down 13c at $2.05, a fall of 6%, on mild volume.
Late on Friday, after the market closed, NZX announced it would write down the carrying value of remaining sale proceeds of its TZ1 Registry, which it sold to UK firm Markit Group last year.
NZX recorded a $53.6 million gain on the sale of TZ1 in its earnings for the six months to June last year, contributing to a record $60 million half-year profit.
Included in the sale was an earn out provision dependent on a "prospective 2012 performance payment from the sale" of TZ1.
However, NZX said on Friday that the lower priority given to carbon trading since the Copenhagen conference last year had cut corporate demand for the registry’s service.
It would now revaluing the shares from the $37.1 million current carrying value to $21.4 million.
“Given the difficult trading circumstances in that space then it was prudent to make a write-down in that investment,” NZX Markets Development Manager Geoff Brown told NBR today.
He rejected any notion that the timing of the announcement – at 5.47pm on Friday – was a tactical move to lessen coverage of the news.
“Under continuous disclosure the timing of announcements is not always something that a company can influence. When it needs to go out it needs to go out.”
First NZ Capital analyst Greg Main said while the write down probably had an effect on NZX shares today the write down wouldn’t have that big an impact on the valuation of the shares.
“It takes away some of the blue sky I guess … people tend to park the valuation of Markit off to one side.
“That’s because there’s not a lot known about it, it’s not visible, and different people view it in different ways. You are either a believer or a sceptic.
“That’s just the nature of that investment. Unfortunately there’s not a lot of visibility and you have to take NZX at its face value on that one."
TZ1 was the world’s largest environmental registry, with more than 350 customers and 38 million metric tons of voluntary emission reductions recorded, when the sale was completed July 1.
NZX is due to release its full year result on March 1.
Back to home
Back to top
Print
Email
Share
Delicious
Digg
StumbleUpon
Reddit
Google
Yahoo
Technorati
Scoopit
NBR SERVICES
SUBSCRIPTIONS
Sign up for NBR subscriber content or email alerts
Latest
Comments and questions5
Some people are very, very , very slow learners.
from the start
Two huge articles out today - AGW finally shown as a fraud.
The man at the centre of it all, Phil Jones, recants - there is no AGW:
http://www.dailymail.co.uk/news/article-1250872/Climategate-U-turn-Astonishment-scientist-centre-global-warming-email-row-admits-data-organised.html?ITO=1708&referrer=yahoo#ixzz0fYUA9upr
Quote:
"The academic at the centre of the ‘Climategate’ affair, whose raw data is crucial to the theory of climate change, has admitted that he has trouble ‘keeping track’ of the information.
Colleagues say that the reason Professor Phil Jones has refused Freedom of Information requests is that he may have actually lost the relevant papers.
Professor Jones told the BBC yesterday there was truth in the observations of colleagues that he lacked organisational skills, that his office was swamped with piles of paper and that his record keeping is ‘not as good as it should be’.
The data is crucial to the famous ‘hockey stick graph’ used by climate change advocates to support the theory.
Professor Jones also conceded the possibility that the world was warmer in medieval times than now – suggesting global warming may not be a man-made phenomenon.
And he said that for the past 15 years there has been no ‘statistically significant’ warming. "
And:
http://www.timesonline.co.uk/tol/news/environment/article7026317.ece
World not warming:
Quote:
"The United Nations climate panel faces a new challenge with scientists casting doubt on its claim that global temperatures are rising inexorably because of human pollution.
In its last assessment the Intergovernmental Panel on Climate Change (IPCC) said the evidence that the world was warming was “unequivocal”.
It warned that greenhouse gases had already heated the world by 0.7C and that there could be 5C-6C more warming by 2100, with devastating impacts on humanity and wildlife. However, new research, including work by British scientists, is casting doubt on such claims. Some even suggest the world may not be warming much at all.
“The temperature records cannot be relied on as indicators of global change,” said John Christy, professor of atmospheric science at the University of Alabama in Huntsville, a former lead author on the IPCC. "
I sincerely hope there is a NBR reporter en-route to Green Party, sorry, National Party MP Nick Smith, to ask when does Key now responsibly announce that NZ's ETS scheme, set to start July 1 this year, will be rescinded? That the NZ public will be relieved of the onerous, and completely pointless cost on them of our ETS legislation, and that we will in this portfolio, at least - 65 to go - be freed from the hairy armpit of political opportunism and oppression, and threat making by a discredited Green movement..
Fully agree with Mark Hubbard
Joe public wised up to this fraud long ago and it beggars belief that these two amongst others are still in total denial. At what point do the voters have to give them both a slap...now or nearer the election?
Post new comment or question
To share this article, click on a service below