Carbon Conscious up on bullish outlook
Carbon Conscious up on bullish outlook

Carbon Conscious says it is on track to meet full-year profit guidance of $3.5 million as the carbon offset firm begins tree planting for the 2012 season.

The company said it had received client payments of about $5 million for planting commencement and would receive a further $5 million on completion of planting 10,000 hectares of mallee eucalypts in the Australian Wheatbelt.

"Rainfall in key planting areas has expedited site preparation and more than 10 million seedlings provided by seven local nurseries are scheduled for delivery over the next 8 to 10 weeks," the company said in a statement.

Chief executive Peter Balsarini said at the completion of the 2012 planting program, Carbon Conscious would have about 19,000 hectares of plantings under management across Australia and New Zealand.

"Ongoing contract revenue associated with existing projects will exceed $43 million over the next 15 years," he said.

Mr Balsarini says a heightened level of interest had resulted in the company moving quickly to expand operations on the east coast of Australia.

"This is an important step for the Company as it provides additional diversification in the season pool and provides a substantial source of land to meet contract requirements," he said.

"We are seeing growing interest from a range of sources seeking our internationally compliant carbon credits.

As more countries develop carbon pricing mechanisms, such as South Korea's new cap-and-trade emissions trading scheme, there is increasing appetite for global carbon offset investments.

"Our initial expansion into the New South Wales Wheatbelt will see approximately 1000 hectares of mallee eucalypt plantings in 2012 with more land being identified for the 2013 planting season."

Carbon Conscious said it was confident of the prospect of further deal flow from recent inquiries.

Shares in the company were up two cents, or 12.5 per cent, to 18 cents at 9.40am.

The West Australian

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