United Technology Corporation, the maker of Sikorsky helicopters, has flown to the rescue of Clipper Windpower and secured the future of the giant Britannia turbine being developed in the north-east of England.
UTC, which also makes Pratt & Witney aero engines, has spent £126m buying a 49.5% stake in loss-making Clipper, which is listed on London's junior Aim market but has most of its sales in the US.
Clipper recently won a grant from energy secretary Ed Miliband to build a factory to construct the 70 metre (230ft) Britannia mega-blades for use in the North Sea wind market but, like Vestas and other manufacturers, has been struggling with cash shortages.
Clipper more than doubled its sales but made a net loss of $120.2m (£75m) in the first six months of the year. Management has made clear in recent months it is searching for a new backer to secure the company's long-term future.
Shares in Clipper soared nearly 20% this morning, to 174p, amid relief and excitement about UTC seen by many as the strongest possible partner given its $64bn (£39.3bn) capitalisation. UTC, based in Hertford, New York, has a fuel-cell business but no other real investment or track record in wind or other renewable energy.
Douglas Pertz, Clipper's chief executive, described the UTC investment as "transformational" and said it would give a platform for expansion. "Our relationship with UTC will enable Clipper to access UTC's support and expertise in areas of manufacturing, product quality and other industrial processes, while providing Clipper with equity financing to deliver our longer-term strategic goals," he said.
"Following this transaction, we believe there is a tremendous opportunity for Clipper to grow its market share and take its world-class technology to new markets."
But not everyone was convinced the future is bright enough yet for Clipper. Analysts at investment bank Piper Jaffray warned: "Today's placing clearly gives the company a cash buffer given that it remains loss-making – the company had a $103m cash burn in the first half of this year. However, technology issues remain and reliance on customer prepayments remains a key risk to the business model."
No comments:
Post a Comment