Article

O2 Vind and Arise accused of overpromising to investors

Swedish wind companies O2 Vind and Arise Windpower have been accused of presenting overly optimistic revenue forecasts. Both firms have applied for public listing on Stockholm’s Nasdaq OMX exchange. O2 Vind aims to drum up to SKr 1.2bn ($168m), while Arise Windpower is looking for around SKr687m in its initial public offering.

Swedish wind companies O2 Vind and Arise Windpower have been accused of presenting overly optimistic revenue forecasts.

Both firms have applied for public listing on Stockholm’s Nasdaq OMX exchange. O2 Vind aims to drum up to SKr 1.2bn ($168m), while Arise Windpower is looking for around SKr687m in its initial public offering.

Arise Windpower is chaired by the former Volvo chief Pehr Gyllenhammar, and boasts a project portfolio of 900 megawatts in southern Sweden. O2 Vind has a project portfolio stretching to 2 gigawatts.

However, both companies have come under fire from Harry Frank, a member of the energy committee within the Royal Swedish Academy of Sciences. Frank says the companies have presented figures intended to attract investors that are far beyond what is realistic.

O2 Vind estimates a capacity factor of 35.4% and Arise Windpower 34%, while the average capacity factor for Sweden’s 2MW turbines in 2009 was 24.6%. To get the return on investment the companies promise potential investors, O2 Vind must produce electricity 3,100 hours per year, while Arise must produce electricity 3,000 hours. The Swedish average in 2009 was 2,154 hours.

“To present this kind of information in the US... more [truncated due to possible copyright]  

Swedish wind companies O2 Vind and Arise Windpower have been accused of presenting overly optimistic revenue forecasts.

Both firms have applied for public listing on Stockholm’s Nasdaq OMX exchange. O2 Vind aims to drum up to SKr 1.2bn ($168m), while Arise Windpower is looking for around SKr687m in its initial public offering.

Arise Windpower is chaired by the former Volvo chief Pehr Gyllenhammar, and boasts a project portfolio of 900 megawatts in southern Sweden. O2 Vind has a project portfolio stretching to 2 gigawatts.

However, both companies have come under fire from Harry Frank, a member of the energy committee within the Royal Swedish Academy of Sciences. Frank says the companies have presented figures intended to attract investors that are far beyond what is realistic.

O2 Vind estimates a capacity factor of 35.4% and Arise Windpower 34%, while the average capacity factor for Sweden’s 2MW turbines in 2009 was 24.6%. To get the return on investment the companies promise potential investors, O2 Vind must produce electricity 3,100 hours per year, while Arise must produce electricity 3,000 hours. The Swedish average in 2009 was 2,154 hours.

“To present this kind of information in the US would not have been possible without risking being sent to jail”, Frank says. Both O2 Vind and Arise claims that their calculations are realistic, as the farms are located at sites with very good wind conditions, with towers and turbines that will give a high energy yield and good revenues.


Source: http://www.nytimes.com/2010...

MAR 17 2010
http://www.windaction.org/posts/25002-o2-vind-and-arise-accused-of-overpromising-to-investors
back to top