New research report on BELCO Holdings Limited (BELCO) released
Hamilton, Bermuda - As part of ongoing updates to the LOM Blue Book, LOM has released a new equity research report on BELCO Holdings Limited (BELCO). This report is published in HTML at http://www.lom.com/belco-holdings-limited and also in PDF form here - http://www.lom.com/publications/BELCO-Research-07-08.pdf.
Jeremy Dyck, CFA, a research analyst at LOM and author of the report, commented that “we have great confidence both in BELCO’s strategic management and the company’s ability to deliver safe and reliable electricity. However, the current state of energy markets – with crude continuing to trade over $125/barrel, combined with ongoing growth in Bermudian consumers, will make for a difficult near-term operating environment. BELCO has some interesting ideas and initiatives related to renewable energy, but these are several years away from fruition and, in the interim, the company will be reliant on conventional forms of electricity production such as heavy oil and natural gas.”
Grant Hopkins, of LOM’s Corporate Finance department, believes that BELCO “has an attractive dividend and valuation relative to most utilities. However, the pass-through of high fuel costs to customers will likely continue to hurt average residential consumption because of conservation efforts at home. On the positive side, BELCO’s healthy balance sheet will help fund near-term capacity expansion programs while in the long-run renewable energy initiatives will help keep Bermuda ‘green’.”
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LOM is a publicly-held, international financial services company, providing a complete range of investment services and products through its regulated subsidiaries in Bermuda, Bahamas and Grand Cayman. In business for 15 years, LOM today has over $1 billion in client assets under administration and provides brokerage, asset management, and corporate finance services to its high net-worth individual and institutional customers in over 75 countries around the world. The parent company, LOM (Holdings) Limited, is publicly listed on the Bermuda Stock Exchange (symbol LOM BH). The consolidated group is debt-free and has shareholder's equity of over $21 million.
