UTILITY COMPANY NTR has engaged Goldman Sachs and Standard Chartered Bank to advise on its preparations to return to the international capital markets next year to raise as much as $950 million (€668.1 million) to fund the development of its solar and wind energy projects.
Amid tough conditions in international markets, these efforts will be a major test for NTR’s ambitious expansion plans. “It’s going to be a big challenge,” said chief executive Jim Barry at a briefing.
NTR reported an “attributable loss” of €22.4 million for the year to March, a performance that reflected €44.5 million development costs in its wind and solar units as well as acute strain on its waste subsidiaries in Ireland, Britain and the US.
The previous year NTR posted a profit of €830.8 million, following exceptional gains from the sale to the Government of the West-Link bridge concession and disposal of its investment in the Airtricity wind-farm venture.
NTR re-entered the US wind sector last year by taking a controlling stake in Missouri-based Wind Capital Group, a manoeuvre that followed its purchase of a 51 per cent stake in Arizona solar power company Stirling Energy Systems.
Goldman and Standard Chartered are advising how the company could raise $250 million in equity for Stirling and debt of $250 million to fund the development on a commercial scale of its “sun-catcher” technology.
Stirling has 10 working “sun-catcher” machines but will have a requirement to build as many as 6,000 for a commercially viable development. Crucial to its efforts will be the achievement of consistent manufacturing quality and efficiencies of scale.
Meanwhile, Wind Capital will have a likely requirement for up to $150 million in equity and $300 million in debt. Mr Barry said NTR hoped to take advantage of loan guarantees and other incentives from the US authorities to stimulate energy investment.
NTR declared a final dividend of 4.94 cent per share, bringing its total dividend 25 per cent higher to 7.22 cent. Revenues rose 15 per cent to €485 million and the group operating loss was €76.4 million. The firm had net cash of €101.4 million at year-end.
