Profit downgrade hurts green power producer

Renewable player Energy Development saw its shares fall to a six-year low after the company announced a big profit downgrade for the 2002-03 financial year due to the cost of repairing engines at some of its generating plants.

The shares, which rose to about $14 two years ago, fell as low as $1.77 yesterday and closed 17% lower at $1.96. Currently, the stock is trading at $1.92.

The struggling green power producer said the engines needing repair affected 108 megawatts of generating capacity. Another 270 megawatts used different engines which did not need to be modified.

The repairs were the main reason full-year profit would fall by as much as $4 million, or 19% from $20.8 million in 2001-02, Energy Development said.

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