Wasabi Energy Limited Half Yearly Report
The Board of Directors of Wasabi Energy Limited present the financial report of the Company and its subsidiaries for the six months ended 31 December 2011.
The Company’s three main investments currently comprise:
- Global Geothermal Ltd (“GGL”) – 100% ownership
- Australian Renewable Fuels (“ARF”) – 13.3% ownership
- AquaGuardian Group – 79% ownership
Highlights:
- Signing of a term sheet with ArcelorMittal South Africa for two build-own-operate Kalina Cycle® power plants of 6 MW and 24 MW at the Vanderbejlpark steel plant in South Africa
- Establishment of a Turkish subsidiary, Imparator Enerji, to pursue opportunities for Kalina Cycle® power in the renewable and industrial sectors
- On time procurement for major components for the 8.6MW Kalina Cycle® power plant project with FL Smidth at the DG Khan cement works in Pakistan
- Establishment of an American Depository Receipt (ADR) programme in the United States with trading on OTCQX expected to commence in February 2012
- Consolidation of ownership position to 79% in Aqua Guardian Group
- Sales to local water utilities and councils of AquaArmourTM for evaporation and algal control
- Increase in revenue of 881% compared to 2010 half year. Revenue increase predominately from DG Khan contract and additional engineering support provided to FL Smidth.
The total loss of the consolidated entity attributable to the owners of the parent for the half year ended 31 December 2011 was $5,216,238 (2010: net loss $2,488,035). This equates to a basic loss per share of 0.23 cents (2010: basic loss per share of 0.17 cents). This loss is represented by a gross profit from operations of $624,737, exchange gains of $387,051 and expenses of approximately $2,700,000. In addition, the holding in Australian Renewable Fuels Limited (ARF) was marked down by $2,872,606 under the applicable Australian Accounting Standard to its 31 December 2011 trading price of 1.4c. The Group has already realised its cash investment in ARF from earlier sales of ARF shares and options and therefore its holding, while creating a loss under the accounting standards will represent a positive cash flow at the time of any future disposal.
The Company’s non-core listed investments have a current market value of over $5,000,000 and the Board expects to realise these investments in part or in whole in the short term.
Mr. John Byrne, Executive Chairman of Wasabi Energy, commented: “During the period our focus was on the delivery of our existing contracts and the ongoing development of new business ventures. We made steady progress across all of our key technologies, and we were delighted to deliver several significant business developments, including a landmark agreement with ArcelorMittal for our Kalina Cycle technology. We continue to gain momentum in all of our key markets, and as such, we have entered the second half of the year with confidence.”