TIDMGSH
RNS Number : 7158O
Green & Smart Holdings plc
23 August 2017
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014. Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
23 August 2017
Green & Smart Holdings plc
("Green & Smart" or "the Company")
Project and Financing Update
Green & Smart Holdings plc (AIM: GSH), a renewable energy
company generating power from biogas captured through the treatment
of palm oil mill effluent ("POME") in Malaysia, is pleased to
announce an update on the progress it has made on various projects
and regarding its financing arrangements.
Megagreen Energy ("MGE"), an associated company of Green &
Smart, has already completed five biogas plants under engineering,
procurement, construction and commissioning ("EPCC") contracts with
6MW of total capacity. With Concord Green Energy ("CGE"), another
associated company of Green & Smart, the Company has an
existing EPCC pipeline of at least another ten biogas plants with
contracts for 12.5MW of capacity. Completion of further EPCC
contracts is expected in H2 2017.
Green & Smart continues to progress its business model of
combining build, own and operate ("BOO") with that of EPCC. Green
& Smart has recently completed the commissioning and
interconnection works for its second fully-owned biogas power
plant, the 2.0MW Malpom plant located in Nibong Tebal, Penang. The
Company is awaiting receipt of a certificate of initial operation
date ("IOD") and expects to receive the formal certificate of
commercial operation date ("COD") during Q3 2017, at which point
Green & Smart will begin to sell power to TNB at the full
tariff rate.
Green & Smart has also established a pipeline of projects
that it will build, own and operate and work is scheduled to
commence shortly on the Dupont (1.0MW) and Veetar (2.0MW) plants.
Green & Smart has also commenced work under its EPCC contract
with CGE on four greenfield biogas-based power generation plants to
be constructed within the sites of four specified palm oil mills
owned by Felda Palm Industries Sdn Bhd. Green & Smart expects
to complete the CGE plants by year-end 2017 with the process of
applying for IOD and COD on these plants to follow. The Company
remains in discussions with CGE in relation to its pipeline of
brownfield sites and will provide further updates on these as and
when appropriate.
Green & Smart has a significant market share of contracts
awarded to biogas-to-power companies in Malaysia. As the Company
stated in its half yearly results for the six months ended 31 March
2017, the maintenance of this leading position is very much
dependent on the availability of adequate funding. As Green &
Smart continues to pursue projects and opportunities which the
Directors believe will deliver value for the Company's shareholders
and enable Green & Smart to maintain its market position, the
Company continues to focus on securing long-term financing
facilities from local finance providers who are becoming
increasingly familiar with both Green & Smart and also the
generation of biogas from POME to generate electricity.
In line with the Company's objective to deliver value for its
shareholders, Green & Smart is focusing on EPCC margins and
project returns in order to facilitate a maiden dividend to
investors for the financial year ending 30 September 2018 in
conjunction with the implementation of a progressive dividend
policy.
Mr. Saravanan Rasaratnam, Chief Executive Officer of Green &
Smart, said:
"We are pleased with our progress in developing our pipeline of
wholly-owned and associated projects. We anticipate the completion
of more EPCC contracts by year-end and our existing fully-owned
biogas power plants will continue to provide power to the grid
while we advance the construction of the new ones. Green &
Smart remains one of the few fully-integrated providers and
operators of biogas plants in Malaysia at a time when government
regulation requires all palm oil mill operators to install biogas
plants to capture greenhouse gases in the form of methane that
would otherwise be released into the atmosphere. As a result, the
Board continues to look to the future with confidence."
Enquiries
Green & Smart Holdings plc
Saravanan Rasaratnam, Chief Executive
Officer
Navindran Balakrishnan, Chief Operations
Officer +44 20 7618 9100
Cantor Fitzgerald Europe (Nominated
Adviser and Broker)
Andrew Craig, Richard Salmond +44 20 7894 7000
Luther Pendragon Ltd
Harry Chathli, Claire Norbury,
Alexis Gore +44 20 7618 9100
Forward-looking statements
This announcement contains statements about Green & Smart
that are or may be deemed to be "forward-looking statements".
All statements, other than statements of historical facts,
included in this announcement may be forward-looking statements.
Without limitation, any statements preceded or followed by, or that
include, the words "targets", "plans", "believes", "expects",
"aims", "intends", "will", "may", "should", "anticipates",
"estimates", "projects", "would", "could", "continue" or words or
terms of similar substance or the negative thereof, are
forward-looking statements. Forward-looking statements include,
without limitation, statements relating to the following: (i)
future capital expenditures, expenses, revenues, earnings,
synergies, economic performance, indebtedness, financial condition,
dividend policy, losses and future prospects and (ii) business and
management strategies and the expansion and growth of the
operations of Green & Smart.
These forward-looking statements are not guarantees of future
performance. These forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of any such person, or
industry results, to be materially different from any results,
performance or achievements expressed or implied by such
forward-looking statements. These forward-looking statements are
based on numerous assumptions regarding the present and future
business strategies of such persons and the environment in which
each will operate in the future. Investors should not place undue
reliance on such forward-looking statements and, save as is
required by law or regulation (including to meet the requirements
of the AIM Rules, the Prospectus Rules and/or the FSMA), the
Company does not undertake any obligation to update publicly or
revise any forward-looking statements (including to reflect any
change in expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based).
All subsequent oral or written forward-looking statements
attributed to the Company or any persons acting on their behalf are
expressly qualified in their entirety by the cautionary statement
above. All forward-looking statements contained in this
announcement are based on information available to the Directors of
the Company at the date of this announcement, unless some other
time is specified in relation to them, and the posting or receipt
of this announcement shall not give rise to any implication that
there has been no change in the facts set forth herein since such
date.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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