Everbright discusses JV with Covanta
Updated: 2009-04-21 07:21
(HK Edition)
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HONG KONG: China Everbright International Ltd, a sewage treatment and waste-to-energy project developer, said it is in talks with US firm Covanta Holding Corp to develop a waste management project on the mainland.
"Covanta would like to do a joint venture with us," said Philip Fan, general manager of China Everbright, a unit of mainland-based conglomerate China Everbright Holdings. "We're always open to discussion, but so far none has come to any conclusion."
Covanta is the largest US waste-to-energy company and one of several foreign companies looking at opportunities on the mainland, where environmental protection projects enjoy tax breaks and other perks.
China Everbright also expects EBITDA (earnings before interest, tax, depreciation and amortization) for its core business of environmental protection to rise 50 percent this year and next as it completes more sewage treatment and other projects.
In 2008, the group's EBITDA grew by close to 50 percent and accounted for 93 percent of overall turnover.
"We are in the process of completing new projects and we are adding more now that we have gained a lot of experience in building new projects, like WTE (waste-to-energy)," said Fan.
The company's overall turnover grew 38 percent to HK$1.9 billion ($244 million) last year, although net profit was steady at HK$339 million because of higher administrative and income tax expenses.
Stripping out one-off items and income tax, the company said net profit rose 27 percent.
China Everbright said it is spending over 2 billion yuan ($293 million) this year and next as it builds more projects in and around Jiangsu and Shandong provinces.
Reuters
(HK Edition 04/21/2009 page16)