News
Pre-Close trading update
Dublin, Ireland – 26 JUNE 2006
DUBLIN, 26 June 2006 – AgCert International plc (‘AgCert’ or ‘the Company’), a leader in the production and sale of agriculturally derived greenhouse gas emission reductions, today issues a trading update prior to its 30 June half year end.
Operational update
The Board is pleased to report that in the first half of 2006 AgCert has made further progress in both its operations and regulatory approvals.
As at 20th June 2006 there were a total of 688 sites started, as compared with 517 at 31st December 2005. There were 462 completed sites, as compared with 265 at 31st December 2005. The CER annual production rate for completed sites is estimated at 1.9 million at end of June 2006, as compared with 1.2 million at 31st December 2005. The run rate at end June reflects an adjustment to yield per site reflecting the Company’s operating and regulatory experience. In total, the Company has submitted 57 PDDs for host country approval and has received Letters of Approval for all 57 (39 in Mexico and 18 in Brazil), as compared with a total of 24 Letters of Approval in December 2005.
40 Project Design Documents have been submitted for registration and 19 project activities have been registered, as compared with 3 at 31st December 2005.
As announced on 31st May 2006, as part of discussions to modify delivery schedules, the Company negotiated a net price increase of €30 million (€60 million additional revenue and €30 million cost) to be recognised between 2006 and 2008. The €30 million upfront cost has been paid and will appear as an exceptional item in the results to 30th June 2006. In consequence of this, additional revenues will be earned in 2007 and 2008.
During the first half of 2006, significant construction effort in Brazil was devoted to ensuring that sites where construction had been commenced were completed satisfactorily to the necessary standard to produce offsets. In the second half of this year, construction effort will return to the commencement and completion of new sites, with a particular emphasis on large dairy farms in Mexico. Based on the combination of current construction plans, revised customer delivery schedules and hedging practices, the Board expects the Company to meet its customer delivery obligations.
Update on AES AgriVerde
As announced on 31 May 2006, AgCert has entered into a joint venture, AES AgriVerde, with The AES Corporation (“AES”), one of the world’s largest global power companies, to create an annual production volume of 20 million tonnes of offsets by 2012 from agricultural projects in selected countries in Asia, Europe and North Africa.
AES has announced its intention to invest approximately US$325 million over the next five years. AgCert advises that it owns a 20 per cent equity interest in AES AgriVerde and is entitled to receive offsets representing 20 per cent of AES AgriVerde’s production up to the target annual production rate of 20 million offsets. Furthermore, the structure of the agreement with AES allows AgCert, at its option, to increase its percentage of the annual production volume based on capital contributions made by AgCert over time.
Since the announcement of AES AgriVerde, a number of other parties interested in exploring the potential setting up of similar production joint ventures in other parts of the world have made contact with the Company.
Strengthening the management team
AgCert has strengthened its management team through the appointment of three experienced senior executives. Particio Northland, Yuda Saydun and Martin Gitlin each have outstanding track records in their respective fields and bring a wealth of relevant business and operational experience to AgCert.
Mr. Patricio Northland joins as Chief Operating Officer of AgCert. He has an extensive background in business strategy, operations, and integration, having led start ups and the multinational expansion of high tech companies. His business expansion efforts have been throughout Latin America, Europe, and the USA where he gained significant experience in negotiating and navigating governmental and regulatory approval processes. Mr. Northland also has a successful history in financing, capital raising and M&A. He has led several large scale integrations, and has become experienced in building multinational and multicultural organizations into a cohesive business. Prior to joining AgCert, he served as Chairman, President and CEO of AT&T Latin America, a US$170 million company with 2,000 employees and operations in five countries.
Mr. Yuda Saydun joins as Senior Vice President with particular responsibility for Mexican and South American Operations, and has an extensive track record in driving growth and profitability in high technology businesses. Mr. Saydun was most recently President of Genventure Corporation, a private investment and advisory services firm helping technology companies accelerate their expansion initiatives. Previously, he was Senior Vice President, Business Development and Division President at NASDAQ listed Tech Data (NASD: TECD), a US$20 billion wholesale distributor of IT products and services.
Mr. Martin Gitlin joins as Chief Legal Officer from Baker & Hostetler LLP, where he was a partner in the firm's Denver, Colorado office. During his fifteen year legal career, Mr. Gitlin has represented clients in complex corporate and transactional matters including debt and equity finance, infrastructure project development and finance, intellectual property and technology transactions, mergers and acquisitions, real estate development and finance matters, joint ventures and strategic alliances, with a particular emphasis on transactions in Latin America. Mr. Gitlin received his J.D. cum laude from Harvard Law School and his Masters in Public Policy from the John F. Kennedy School of Government at Harvard University.
Commenting on today’s announcement, Bill Haskell, AgCert’s Chief Executive said: “I am pleased to report further strong progress at AgCert in terms of both operations and regulatory approvals. We continue to be very excited about the AES AgriVerde joint venture as the benefits derived are incremental to the AgCert business plan. The commencement of the AES AgriVerde joint venture combined with our continued progress in the core business and strengthened management team provides AgCert with an excellent foundation for achieving its operational and financial goals in the future.”
Contacts::
| AgCert International | |
| Bill Haskell, CEO | Tel: +353 1 245 7400 |
| Paul D'Alton, CFO | Tel: +353 1 245 7400 |
AgCert media inquiries:
| Maitland | |
| Liz Morley / Brian Hudspith | + 44 (0) 20 7379 5151 |
About AgCert AgCert International plc was founded in 2002 to produce and sell reductions in greenhouse gas emissions (referred to as "offsets") from agricultural sources on an industrial scale. These offsets are intended to satisfy the requirements of the Kyoto Protocol and be capable of being traded on the European cap and trade system, the European Union Emissions Trading Scheme ("EU-ETS"). AgCert has identified agriculture as one of the largest commercial opportunities for offset production and expects to be a leading supplier of offsets from this sector. AgCert has significant expertise in the use of United Nations approved methodologies for the production of offsets in the agricultural sector from animal waste. More information about AgCert’s Greenhouse Gas Reduction projects can be found at www.agcert.com |