LONDON - Carbon offset aggregator Camco International expects a carbon structured transaction announced on Tuesday to have a positive impact on 2009 results.
Camco, which sells carbon offsets under the Kyoto Clean Development Mechanism, said it had sold the rights to 2.1 million tonnes of its carbon portfolio for 9.8 million euros ($14.4 million) upfront, with net cash proceeds coming in at 8.4 million.
Scott McGregor, who took over as CEO in October, said Camco was very happy with the deal.
This deal wasn't in our forecasts. We've been working on it for six months and it's provided us with a significant amount of cash in the bank, he told Reuters via telephone from Moscow.
Shares in Camco were up 1.1 percent at a 6-week high of 23 pence at 0857 GMT.
KBC Peel Hunt analyst Andrew Shepherd-Barron said the sale means Camco should exceed his forecast for year-end cash of 20 million euros and would also have a positive impact on his 2009 forecasts, which currently estimate a pretax loss of 11 million euros.
The tonnage is the entire output expected from certain projects, rather than simply a first tranche, and therefore the delivery risk has been taken by the buyer.
McGregor said Camco tougher regulation would give impetus to its services business, where it helps clients to reduce emissions.
It's obvious to me that whatever happens post-Copenhagen, regulation will only get tougher. Emissions have to be reduced and there's complete consensus from all governments on that.
He added that the Copenhagen talks were looking positive so far: There's good positive momentum, to have all the world leaders there is a great signal.
(Reporting by Victoria Bryan)