Wind-farm developer Renewable Energy Holdings Plc (REH.L) said on Friday its 2008 revenue was below its expectations by 1.21 million pounds ($1.72 million) due to a delay in licence fee payment on its CETO wave energy system.
Renewable Energy, whose revenue from wind assets in Germany were hurt by unseasonably light winds in late 2008, now expects earnings before interest, tax, depreciation and amortisation (EBITDA) to be about 1.41 million pounds compared with 0.67 million pounds in 2007.
Its 2008 pretax loss is now estimated to be about 1.97 million pounds against a loss of 2.1 million pounds a year earlier.
The company also said due to a change in the accounting treatment of CETO development payments from Carnegie Corp (CNM.AX), its reported revenue in 2008 would be lower by 2.79 million pounds.
All CETO licensing revenue received from Carnegie are now required to be treated as "deferred income" and recognised as income over the 30-year life of the licence agreement, Renewable Energy said.
Australia-based Carnegie has developed a method of using energy captured from passing waves to generate high-pressure sea water.
The CETO — named after a mythical Greek sea creature — pumps and buoys are located under water, differing from some other wave power methods, for example, those that sit on the surface.
Renewable Energy shares were down 1.5 pence at 31 pence at 0903 GMT. They touched a low of 30.25 pence earlier in the session. ($1=.7023 POUND)
