Performance at Month End
January 15 2004 - 1:19PM
UK Regulatory
RNS Number:3051U
Merrill Lynch New Energy Tech. PLC
15 January 2004
MERRILL LYNCH NEW ENERGY TECHNOLOGY plc
All information is at 31 December 2003 and unaudited
Performance at month end with net income reinvested
One Three Six One Since
Month Months Months Year Launch*
Net asset value 2.7% 2.9% 27.5% 28.6% -73.7%
Share price 0.0% 1.2% 35.9% 38.1% -78.3%
*23 October 2000
Source: Merrill Lynch Investment Managers
At month end
Net asset value: 25.15p
Share price: 21.75p
Discount to NAV: 13.5%
Net yield: N/A
Total assets: #51.0m
Gearing: 1.7%
Ordinary shares in issue: 198,950,000
Sector % Total Country % Total
Analysis Assets Analysis Assets
Auto & On-Site Generation 39.6 USA 49.4
Renewable Energy 25.1 Canada 27.8
Enabling Energy Technology 24.9 Denmark 6.4
Energy Storage 10.8 Spain 6.0
Current liabilities (0.4) Germany 4.7
United Kingdom 3.3
Australia 2.8
Current liabilities (0.4)
----- -----
100.0 100.0
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Ten Largest Equity Investments
Company % of Investments Country of Risk
American Superconductor 8.2 USA
Gamesa 6.0 Spain
Hydrogenics 5.9 Canada
Active Power 5.4 USA
Fuelcell Energy 5.1 USA
Intermagnetics 5.0 USA
Ballard Power 5.0 Canada
Xantrex Technologies 4.8 Canada
Vestas Wind 4.6 Denmark
Plug Power 4.3 USA
----
Total 54.3
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Robin Batchelor and Poppy Buxton, representing the Investment Manager, noted:
Performance Review
During the month under review, the Trust continued to benefit from positive
momentum in the sector. The NAV increased by 2.7% to 25.15p, while the share
price remained flat at 21.75p.
On the corporate newsfront, Vestas Wind Systems, the world's biggest windmill
maker, agreed to buy NEG Micon for $405m in an all share deal that would create
the biggest company in the industry, with over 30% global market share. The news
is a positive for both companies, who have had to trim sales forecasts recently
given delays in orders or cuts in government subsidies. This should help the new
entity to cut costs and report better margins going forward. Furthermore, it
will allow the group to deliver on economies of scale and protect its market
share in the face of increased competition from new entrants like General
Electric. On the day of the announcement, Vestas's shares gained strongly on the
news but retreated later to close up 3%. NEG Micon's shares climbed as much as
37% to finish the day at 92.5 kroner. Both companies are core holdings of the
Trust and have contributed positively towards December's performance.
In the automotive and on-site generation sector, Westport Innovations and
Cummins announced the extension of their 50:50 joint venture agreement, known as
CWI, to develop markets for alternative fuel engines. The news will allow CWI to
capitalise on the rapidly growing markets for natural gas engines in China and
India. Westport shares rose 12% on the day of the announcement.
In other news, following the successful rollout of Ballard's fuel cell powered
buses in Reykjavik, the company delivered three models to the public transport
authorities in London. The first of these three buses began public service in
London's West-End on 14 January. In addition, Ballard secured another contract
for the delivery of three fuel cell buses to Perth, Australia.
Finally, Fuelcell Energy reported 4th quarter results in line with consensus
estimates. Whilst revenues and backlog were slightly below expectation, a
reduction in production and R&D costs versus Q4 2002 contributed to lower
losses. Cash burn remained in line with budget, leaving sufficient to fund
operations over the next few years.
Portfolio Activity
During the month of December, there was no significant portfolio activity.
Outlook
We continue to see evidence that the "catch-up" infrastructure investment
required following the recent electricity blackouts has begun, to the benefit of
our superconducting and stationary fuel cell holdings. Meanwhile, government
policy continues to be incrementally positive (e.g. in the UK) although the
timing and scope is very difficult to predict (as we have seen in the US).
Nevertheless, government regulation should continue to be a positive driver of
share price valuations going forward and may well accelerate the progression of
the industry.
Latest information is available by typing www.mlim.co.uk/its on the internet,
"MNE.L" on Reuters, "MNE LN" on Bloomberg or "8800" on Topic 3 (ICV terminal).
15 January 2004
This information is provided by RNS
The company news service from the London Stock Exchange
END
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