NTR not expecting more losses on solar investments

UTILITY GROUP NTR told shareholders yesterday the company would not have to take any further hits on its solar energy investments.

The group wrote €42.4 million off the value of its Sterling Energy Systems solar power venture in the US this year, representing close to one-third of the €132 million reduction in the value of its assets that NTR recorded in the 12 months ended March 31st.

In 2010 the company wrote €96 million off the worth of its solar business, citing project delays for the fall in its value.

At its annual general meeting in Dublin yesterday, chief financial officer Neil Parkinson said NTR would not have to face any further writedowns in the value of its solar energy investments. “There will be no further costs in relation to solar,” he told shareholders.

The company originally planned to build plants in Imperial Valley and the Mojave Desert in California with the capacity to generate up to 1,300megawatts of electricity, three times that of an average-sized, gas-fired power station.

The group later decided to limit funding to the business and is seeking a third-party investor. When it published its results a month ago it said it had yet to attract an investor.

NTR has investments in solar power, wind energy, waste and biodiesel in the US. In Ireland it owns waste management group Greenstar and 50 per cent of Celtic Anglian Water, which operates water treatment plants in Dublin, Sligo and Waterford.

In the US its Wind Capital Group recently brought a 150megawatt facility in Lost Creek, Missouri, on stream. The business is generating revenues and operating profits.

Speaking after the meeting yesterday, NTR chief executive Michael McNicholas said the group would be interested in providing infrastructure or services for the new State-owned water utility planned by the Government.

In general, Mr McNicholas said capital was scarce. However, he did not rule out making further acquisitions in the Republic as he said there was potentially good value available.

NTR is a public limited company, but its shares are not listed and are traded on the grey market.