Infigen opts to pay later

Adelaide Advertiser
Friday 19/11/2010 Page: 66

WIND farm operator Infigen Energy's shares slumped yesterday after it told shareholders debt repayment was limiting cash flows available for dividends and business development. Infigen Energy expects to repay close to $100 million of its debt over the next two financial years instead of the previously forecast $200 million due to the rising dollar and lower energy prices. Shares closed 12% lower at 64¢ after the company's annual general meeting.

The company - still open to the sale of its US and German assets after failed efforts this year - is focusing on its Australian business to grow. Infigen Energy recently completed the expansion of its wind farm at Lake Bonney in SA and yesterday announced a $14 million expansion of its new Woodlawn Wind Farm in NSW. "We have a high quality pipeline of prospective new developments in Australia.

However, we will only commit to initiating new developments once we are able to secure attractive off-take arrangements and satisfy Infigen Energy's strict internal rate of return requirements", managing director Miles George said. Mr George said the company was in talks with potential partners to fund the wind projects. It has also partnered with Chinese solar panel maker SunTech for a slice of the Federal Government's $1.5 billion Solar Flagships program. He also called for "clear, stable and reliable policy settings that are not subject to constant change".