Camco International

China's imminent new Five Year Economic Plan should bring fresh opportunities for emission reduction and clean energy specialist Camco International (CAO). The Jersey-based AIM company, which is fast moving towards profitability and is already a market leader in the People's Republic, expects the Beijing planners will emphasise energy efficiency and environmental issues.

With carbon credits pioneer Yariv Cohen as president and experienced sector player Scott McGregor as chief executive officer, Camco works with major industrial companies and agricultural groups around the world, to convert the waste they generate into fuel. The company can trade the carbon credits this creates in the market and secure fees and commissions for ptoject work and consultancy.

Camco, which slashed first-half losses from €18.1 million (£15 million) to € 396,000 on turnover doubled to €11 million, is now involved in more than 300 projects, some 85% of them in China. Khazanah Nasional, Malaysia's £22 billion sovereign wealth fund, holds 24 per cent of Camco and is minority partner in a joint venture in the region concentrating on industrial energy efficiency and converting methane to energy. 

McGegor points out the company has built up a formidable carbon credit portfolio. Stressing Camco trades only credits it owns and does not speculate, he cites forecasts from leading financial players of a strong medium-term rise in prices in this market, which was recently dislocated by technical factors and theft by one participant but, he suggests, is poised to come into its own.  

Floated at 60p in 2006, Camco shares have hitherto been notably poor performers and now trade at 13.25p. With analysts expecting next week's 2010 results to show pre-tax profits of more than £4m, against 209's £10.8m loss), they could be worth a bold punt.