International Power Buys Trinergy Wind Portfolio

Online Stock Trading - Wind Power

International Power Buys Trinergy Wind Portfolio

International Power plc says on its website that it is a "leading independent electricity generating company with interests in over 29,000 MW (gross) of power generating capacity, located in 19 countries."

In addition to power generation it is also involved in :

­wholesale production of fresh water through seawater desalination
production and distribution of steam
district heating via cogeneration
the electricity retail business
open-cast coal mining
gas transportation
renewable energy

It has today announced it has agreed to buy the 648 MW Trinergy Wind Portfolio (windfarm projects), including 581 MW in operation and 67 MW currently under construction, from private investors connected with the Matrix Group and CJS Capital Partners Limited, for an enterprise value of €1,839 million (£1,243 million), with a total cash consideration of €868 million (£586 million).

Philip Cox, CEO, said, 'This acquisition adds a high quality, large scale operating wind farm portfolio in Italy and Germany to our European renewables business. Both Italy and Germany are attractive markets with significant growth targets for renewable generation, supported by clear regulatory frameworks. Following this transaction International Power will have 1,013 MW of operational wind turbines and a further 117 MW under construction.'

JP Morgan recently raised its price target to 470p from 410p and is overweight. ‘By our estimates, IPR currently: offers an 18% total return (including the May 08E DPS) to June 2008; trades at a discount to sector earnings multiples; and has a low correlation to bonds.
‘In our view, results on August 9 should confirm the upgraded outlook, and 2-3 project deliveries by y/e should confirm the growth story.’

2-year chart looks quite sexy



It could be getting ready for another run up.

2-month candlestick chart




Results due out on 9th August

I was just about to buy some, but the market must have got wind of my intentions and spiked the price up an extra 3% ! So I'll wait to see if it drops back down again.

Please feel free to leave any comments/suggestions tips of your own. Have a goood day !

international power
jp morgan
trinergy
wind power
power generation
desalination

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