Last July Typhoon 'Feria' forced Pacific Hydro and its joint venture partner to close the Bakun Hydro power station for seven weeks. The claim covered physical damage of $4.8 million and lost generation revenue of $9.3 million. Pacific Hydro said work to protect the power station from future typhoons has been completed.

"Bakun Hydro power station has generated budget revenue for the past 12 months," said Pacific Hydro's managing director, Jeff Harding. "We are pleased to have received the final payment of our insurance claim and continue to be on track to report strong profit for the current financial year."

Luzon Hydro is a joint venture between Pacific Hydro and Aboitiz Equity Ventures (AEV) of the Philippines. Pacific Hydro has a number of investments in Australia, the Philippines and Chile.

While the stock climbed 12c to finish at $3.20 on the announcement, Pacific Hydro is still down 23% from the start of calender 2002. Industry watchers believe company such as Pacific Hydro are the victims of the market's re-rating of green energy stock, which were recently market darlings.

"However, green energy stocks are now coming back to fundamental valuations," one analyst said.