14 Feb 2013 18:02
Ecofin Water & Power Opportunities plc
Interim Management Statement for the 4 months to 31 January, 2013
To the Shareholders of Ecofin Water & Power Opportunities plc (the "Company"),
This Interim Management Statement has been produced solely to provide additional information to shareholders in order to meet the requirements of the UK Listing Authority's Disclosure Rules and Transparency Rules. It should not be relied on by any other party for any other reason.
This Interim Management Statement relates to the period from 28 September, 2012 to 31 January, 2013 and contains information that covers this period and up to the date of publication of this Interim Management Statement. More detailed information about the Company and its performance is available on the Investment Manager's website, www.ecofin.co.uk.
The Company invests primarily in the equity and equity-related securities of utility and utility-related companies in the developed OECD economies and may invest, to a limited extent, in the debt securities of such companies. Utility companies are those engaged in the electric power, water and wastewater, gas and energy transmission industries. Utility-related companies are those that supply equipment, technology, fuel or services to utility companies or which supply essential infrastructure services.
At 31 January, 2013 the Company's investment portfolio was invested as follows: 10.8% in the United Kingdom, 21.1% in Europe excluding the UK, 47.3% in North America (including 6.0% in Canada), 6.0% in other developed countries and 14.8% in emerging markets. 11.0% of the Company's investment portfolio was invested in bonds, primarily in the United States, and 7.6% was invested in unquoted companies.
Over the approximately four month period to 31 January, the Company's Ordinary Shares traded at an average discount to their net asset value per share of 26.1%. The discount, based on the closing mid-price of the Company's Ordinary Shares on 13 February and the most recently announced net asset value per Ordinary Share as at 6 February, was 23.2%.
Material Events and Transactions
On 27 September, 2012, further to the buyback and cancellation of the Company's Subscription Shares with the consent of shareholders in general meeting, the Company's accounting reference date was changed from 31 March to 27 September. Fully audited accounts were prepared for the financial period 31 March to 27 September, 2012 and results were announced on 25 January, 2013. The Annual General Meeting of the Company will be held on Friday 15 March, 2013. The Company's current financial year began on 28 September, 2012 and will end on 30 September, 2013.
Effective 1 October, 2012 Lord Myners was appointed a Director of the Company. He is also a member of the Company's Audit Committee.
On 22 October, 2012 the Company entered into an agreement to sell its 87.5% holding in Ecofin Energy Resources plc (EER) for new shares in Amadeus Energy Limited. Amadeus is an Australian oil and gas company listed on the Australian Stock Exchange with virtually all of its assets in Texas. EER is the Company's largest investment and is active in US unconventional oil and gas production through its Texas based wholly-owned subsidiary Lonestar Resources Inc. The transaction was approved by Amadeus shareholders on 17 December, 2012 and completed on 2 January, 2013. Amadeus Energy has been renamed Lonestar Resources Limited (Lonestar) and the Company owns approximately 55% of the new combined entity.
As a result of the transaction, the Company's holding in Lonestar is now valued at Lonestar's share price in accordance with International Financial Reporting Standards (IFRS), and this change was first reflected in the net asset value of the Company as at 23 January, 2013 which was published on 28 January, 2013.
On 22 November, 2012 the Company was accepted as an approved investment trust for accounting periods commencing on or after 28 September, 2012 by HM Revenue & Customs.
The Company has 210,377,892 Ordinary Shares in issue, 568,409 of which are held in Treasury. In addition it has 60 million Zero Dividend Preference Shares outstanding (issued through EW&PO Finance plc) which will mature on 31 July, 2016, and £79,949,563 nominal amount of Convertible Unsecured Subordinated Loan Stock outstanding, before the amortisation of expenses associated with the issue, which is convertible into Ordinary Shares of the Company. Any Convertible Unsecured Subordinated Loan Stock which has not been converted into Ordinary Shares of the Company by 31 July, 2016 will be repaid by the Company at its nominal amount.
The Board is not aware of any other events or transactions announced or undertaken by the Company which occurred between 28 September, 2012 and the date of this announcement which had a material impact on the financial position of the Company.
14 February 2013