The purchasing agreement between Babcock-Hitachi KK and Babcock Borsig AG has been formally completed. BHK now owns 90 per cent of BB Power Systems GmbH, the remaining 10 per cent staying with BB group. Formal assent to the purchase was given on May 7 by the BBP committee of creditors. Also, under the terms of the sale, Fisia Babcock Environment GmbH of Gummersbach has passed entirely into the ownership of Italian water treatment specialist Fisia Italimpianti.
Independent power producer Calpine has bought Babcock Borsig Power Turbine Services, and renamed it Thomassen Turbine Systems. The firm will continue to commission and maintain heavy duty gas turbines.
Calpine itself has been keen to reassure investors after accounting changes caused it to revise downwards its profit statements for the last three years. The company said that further restatements were possible. Calpine has agreed with its auditor, Deloitte & Touche, that two deals, known as sale-leaseback transactions, would be accounted for as financing transactions. Previously, after consultation with its former auditor, Arthur Andersen, the deals were accounted for as operating leases. The revision will shave 4.5 per cent from Calpine's combined profit for 2000-2002.
Calpine said that the accounting change had not altered its outlook, and it was standing by its 2003 earnings target of 40-50 cents per share. The average forecast is 42 cents. Calpine also said the accounting change would not hurt cash flow or liquidity and would not force it to default on any loan agreements.
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