ERM Power - Investor day confirms structural growth trends
The recent investor day confirmed the opportunities we see for ERM Power from an evolving energy market, which we expect will create medium-term growth potential especially for the Energy Solutions business. In the meantime, investors will benefit from strong forecasted cash flow generation, with total free cash flow over the period FY19–21 equivalent to c 40% of the current market cap. We expect this to be allocated in a balanced way between shareholders’ remuneration and growth capex.ERM Power is engaged in the electricity sales to businesses in Australia and the United States of America; the generation of electricity; and the energy solutions. Co.'s segments include Business Energy Australia, which provides electricity sales to business customers in Australia; Business Energy US, which provides electricity sales to business and residential customers in the U.S.; Generation Assets, which provides gas-fired power generation assets and delivery of power generation solutions; and Other, which provides gas, metering, data analytics and lighting solutions.
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