NTR's operating losses widen to €48m

LOSSES AT Irish investment group NTR from “continuing” operations widened to €48.3 million in the six months to the end of September, accounts published yesterday showed.

This compared with a loss of €44 million for the same period of 2010 for its mix of waste, recycling, infrastructure and green energy investments.

The increased losses were partly due to a €21.7 million hit on the sale recently of 3.5 million shares in Green Plains Renewable Energy, a US-based ethanol producer.

NTR actually posted a loss of €135.7 million in the six months to the end of September 2010.

However, this included losses of €91.7 million for certain investments that it no longer holds – primarily a waste business in the UK and a solar energy division in the US.

Group revenue rose to €172.4 million in the half year, up from €167.9 million in the same period of 2010.

NTR’s group earnings before interest, tax, depreciation and amortisation (Ebitda) doubled to €13 million.

NTR chief executive Michael McNicholas described the trading as a “solid performance”.

“We’re happy with where we are for now,” he added.

Mr McNicholas said the losses reflected the changes that have taken place in the business, with the company exiting waste in the UK, solar in the US and reducing its exposure to toll roads in Ireland.

NTR said it would not be paying a dividend for the half-year.

Mr McNicholas declined to say when this might be resumed, adding that it was “under constant review”.

NTR’s main owners are chairman Tom Roche and his family, who hold a 39.61 per cent stake in the business, and Irish investment group One51, which owns 24.46 per cent.

NTR said its Greenstar waste business in Ireland met “all business plan targets” in the six months to the end of September. However, the company said it expected the second half of the year to be “more challenging”.

The company’s investment in Stirling Energy Systems (SES), a US solar company, has effectively been wiped out. NTR took a full write-down on this in its accounts for the year to the end of March 2011.

SES has since filed for Chapter 7, a liquidation process in the US.

“We’re not projecting anything in terms of an outcome from Chapter 7,” Mr McNicholas said.