New Energy Solar (ASX: NEW) announced the completion of construction at its Manildra Solar Power Plant, located approximately 45 kilometers west of Orange in Central West of New South Wales.
In an announcement dated 27 December 2018, New Energy Solar told that Manildra Solar Power Plant is operating at its full designed capacity. It further reports the commencement of sales of electricity into the National Energy market since April 2018.
New Energy told that to reach final completion by the construction contract specifications several items are pending for completion by the construction contractor, RCR O’Donnell Griffin (RCR). Moreover, on 22 November 2018, RCR and its AS listed parent company RCR Tomlinson Limited announced the appointment of voluntary administrators.
Manildra has been in operations since April 2018 with a capacity of 55.9 MWDC. New Energy intends to sell the plant power and Large-Scale Generation Certificates to EnergyAustralia once the company achieves the full commercial operations at Manildra. The sale is reported to be undertaken through power purchase agreement for a term of 10 years with an option to extend out to 2030.
The Manildra project entity has reportedly terminated the construction contract with RCR O’Donnell Griffin To protect investor interests. It has also taken measures to finalize these outstanding items and achieve Final Completion, including drawing on bank guarantees. These facilities are required to fund remaining Final Completion items and all other related costs or liabilities. NEW further stated that it is working with construction management provider First Solar (Australia) Pty Ltd to finalize the remaining items required to achieve Final Completion.
As per the company’s half-year results release, New Energy Solar targets the distribution of 7.75 cents per stapled security in 2018. The outlook is based upon the company’s expectation for successful commissioning of plants in North Carolina and Oregon. NEW’s contribution to producing emissions-free electricity is expected to grow, with the total portfolio expected to generate more than 1,700 GWh of electricity annually.
As at 30 June 2018, the company had weighted average debt maturity of 11.4 years, reflecting the long-term contracted nature of the power purchase agreements driven by the company’s plants and diversified nature of its portfolio.
Shares of New Energy Solar last traded at $1.390. However, in today’s trading session, NEW stock price traded flat with 21,353 daily volume change. Its last traded PE was 8.700 x with a market capitalization of $481.9 million. Over the past 12-months, the stock has witnessed a daily price change of negative 7.33% with a decline of 2.11% in the past month.
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