Arise changes short-term strategy, plans sale of wind assets
Oct 9, 2014 - Swedish onshore wind farms developer Arise AB (STO:ARISE) said today it plans to sell a small portion of its operational assets as part of a short-term strategy to beef up its cash flows.
Arise said in a statement that due to the slowdown in the expansion of the local wind power market caused by low electricity and certificate prices, the company was forced to revise its previous target of building an additional 650 MW of onshore wind farms by the end of 2017.
Instead of concentrating on growing its own production capacity, the firm has decided to release capital through asset disposals so it could cut indebtedness. This, in turn, would strengthen Arise’s financial position and cash flows. Also, the company will seek to generate more revenues by divesting shovel-ready projects to investors and providing construction and asset management services.
Arise stressed that it will not abandon its plan to boost own production capacity, but includes those activities in its long-term strategy. The improved cash flows will help it pursue that plan, it added.