Fri, May 04, 2018 - Page 12 News List

Swancor plunges further on disappointing contracts

ALTERNATIVE ENERGY:Unfazed by its setbacks, the offshore wind farm developer plans to participate in an auction next month to provide 1.66GW of capacity by 2025

By Kuo Chia-erh  /  Staff reporter

Shares of Swancor Holding Co ( 上緯) yesterday continued to plunge after the company missed expectations that it would secure more contracts for offshore wind farms along the nation’s west coast.

The stock dropped by the maximum daily limit of 10 percent for the second straight day, closing at NT$122.50 in Taipei trading.

The Ministry of Economic Affairs on Monday approved 10 offshore wind farm projects, with a total capacity of 3.836 gigawatts (GW), by seven developers.

While Swancor obtained approval for its Formosa II (海能風電) project, whose two Miaoli County-based wind farms are expected to become operational by 2020 with an installed capacity of 378 megawatts (MW), it did not get the nod for its Formosa III (海鼎風電), a project in Changhua County that was expected to have a capacity of 2000MW by 2025.

Despite the discouraging results, Swancor said it would participate in an auction next month by the ministry to select developers to provide 1.66GW capacity by 2025.

Overall, the government plans to build offshore wind farms with a total capacity of 5.5GW by 2025.

The Nantou County-based company, which began its energy business in 2012, has successfully set up the nation’s first offshore wind farm, Formosa I (海洋風電), through an alliance with Australia’s Macquarie Capital Ltd and Denmark’s energy company Orsted.

Once completed by the end of next year, the Miaoli-based wind farm’s total capacity would reach 128MW, Swancor said.

Swancor, whose core business includes turbine resin manufacturing, posted a first-quarter net loss of NT$42.08 million (US$1.41 million), compared with a net profit of NT$1.22 million a year earlier. Losses per share were NT$0.47.

First-quarter revenue grew 22.62 percent to NT$1.15 billion, but gross margin fell to 12.61 percent from 18.56 percent.

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