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Shares in Active Energy Group (LSE:AEG) rose over 27% on trading following a trading update published this morning.
Key Components of the Update
The company reiterated its focus on the development of the Active Energy Ukraine business and successful deliveries against its first commercial contract. Deliveries of 80,000 tonnes of wood chips to the Polish group Medium are on target, with the company expecting to yield about £3m in the 2012 fiscal year.
Ability to Meet Contract Obligations Spurs Positive Outlook
Speaking of all current contracts, Executive Chairman Gavin Little announced that “We have gained access to natural resources and the chance to fulfill orders without commitment to large amounts of working capital and fixed costs.”
Key contracts currently in place include:
- A ten-year contract to supply up to 100,000 tonnes of timber from Lyubomi Forestry.
- A ten-year contract to supply 80,000 tonnes of processed wood fuel chips from Volyninvestbud utilizing the timber from Lyubomi Forestry
- An initial contract with Medium to supply of up to 80,000 tonnes of wood chips.
Mr. Little summarised the reason for the update, emphasising that AEG has clearly established adequate and dependable resources for the company to deliver against customer requirements in the Biomass fuel market.
Company Spotlight
Active Energy Group is a provider of biomass, including raw materials, logs, wood chips, and pellets to customers in Poland, the Ukraine, and the European Union.
References
↑ AEG Website
