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Investor Chronicle
Created: 19 April 2011 -- Written by: Graeme Davies
Camco crystallising value
Clean energy project developer Camco International continues to build long-term value in its business. In its six-monthly update, the company said its portfolio of carbon credits, delivered from projects in the developing world which it has helped to originate, has continued to grow. Its portfolio for delivery before the end of the current phase of the Kyoto Protocol in 2012 edged up by 3 per cent and its post-2013 portfolio increased by 33 per cent. Crucially, 70 per cent of its portfolio is now registered with the UN, a key landmark before credits can be created.
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As well as being pushed upwards by the rising oil price, carbon pricing has hardened further since the Japanese nuclear disaster. On average, forward pricing contracts have risen by 19 per cent over the past quarter. This bodes well for Camco, which is building up significant unrealised value in its portfolio. Buy.