Windlab Limited wins asset management contract for Nevertire Solar Farm via its wholly owned subsidiary Windlab Asset Management Pty Ltd (WAM). The news sent the stock price to edge up by 2.752% to last trade at $1.120 on 15 March 2019.
With this new contract in hand, Windlab Limited (ASX: WND) portfolio exceed to $1 billion Asset Under Management. The company believes that its strong portfolio of assets itself is recognition by the industry of the value it offers.
The report read that WAM’s management role will start with immediate effect for the Nevertire Solar Farm, located in North-West New South Wales. Currently, under construction by EPC contractor Biosar, the project is expected to reach completion in June 2019.
Executive Chairman and CEO of WND stated that “the contract for Nevertire Solar Farm would mark the first stand-alone third-party-owned solar farm in the company’s asset management portfolio which has taken the value of Windlab’s assets under management up to over $1 billion. With the dedicated, expert team and growing scale, the company looks forward to providing high quality, cost effective services to the industry and this solar project is the first of many under management.”
Leading renewable energy asset manager, Windlab Asset Management Pty Ltd, is an integral part of Windlab business, established to support, manage, optimise and protect the values of each operating asset in its portfolio. WAM’s team uses a centralised service delivery model, allowing it to provide integrated services from its global operations hub and deliver real cost savings for asset owners.
The contract provides the opportunity for the company to derive benefits in the highly emerging renewable energy market backed by numerous state government initiatives. The company earlier stated that several states including Victoria, New South Wales and Queensland had shown their strong support that drives investment certainty in renewable generation.
Windlab made record investment in renewable energy generation, exceeding $12 billion on the back of growing demand for renewable energy. The company stated that continuing rapid reductions in the cost of renewable energy technology has led to broad recognition across business and government that they are now clearly the lowest cost form of new generation technology.
The Group generates revenue from development of wind farms, asset management fees, as well as royalties and distributions from operating projects.
During 2018, the company’s asset management revenues grew to $2.97 million, up 27% from 2017. More interestingly, resulting from the distribution of earnings from the interest in operating windfarm increased 540% to $1.92 million, reflecting strong performance from Kiata Wind Farm during its first full year of operation and profit from Kennedy Energy Park. In the entire year, Windlab grew and matured its portfolio of development projects, adding projects in Queensland, New South Wales, Victoria and South Africa.
In 2019 to-do-list of the company, work towards the financial close of Miombo Hewani in Tanzania and Lakeland Wind Farm forms an integral part. The company also intends to submit a development application for “Big Kennedy” and up to 3 additional projects in 2019.
Over the past 12 months, WND stock price declined by 27.33% despite the upside momentum of attractive 36.25% in the past three months.