Wind farm operator Renewable Energy Generation's (RERWE.L) first-half pretax loss widened to 7.9 million pounds, hit by charges, and on Tuesday said it planned to halve its interim dividend and buy back shares.
AIM-listed REG's result followed the prior year's pretax loss of 1.78 million, and included a one-off charge of 2.9 million pounds for cancelling a turbine order, as well as a 4.5 million unrealised loss on interest rate swaps.
Its revenues rose to 4.7 million pounds, from 1.2 million. The group said it planned to cut its interim dividend by half to 0.5 pence a share and to buy back up to a quarter of its equity following a fall in its share price.
Shares in REG, which runs 11 wind farms in the UK and Canada and has a power station fuelled by vegetable oil in eastern England, have fallen from more than 1.30 pounds in August last year to 33 pence at Monday's close.
By 1255 GMT, REG shares were up 2.27 percent at 30.9 pence.
Chief Executive Andrew Whalley told Reuters the global financial crisis had seen REG's share price fall well below its net asset value, which totalled 65 million to 75 million pounds.
However, REG expected to boost its revenues in the next year by selling its energy at higher price, he said in an interview.
Numis said the group's pretax earnings before interest, depreciation and amortisation were below its expectations.
"However, we believe underlying prospects for the group's business — in particular in Canada — have improved," it said.
REG booked an improved trading loss of 2.1 million pounds, from a 2.5 million loss in the year-earlier period.
Looking ahead, Whalley said credit markets were easing and energy prices were seen rising in 2009.
REG said it had agreed a 20 million pounds credit facility with banking group HBOS HBOS.L. It was planning energy schemes of over 300 megawatts and hoped to deliver several in the next 12 months.