LONDON (Alliance News) - Infinis Energy PLC said Wednesday it remains confident that it will meet its trading expectations for the full-year and that it is on track to fulfill its dividend payments after delivering a robust operational performance during the period.
In an interim management statement for the period October 1 2013 to February 12 2014, the firm said it has delivered a robust operational performance, in line with management expectations.
During the period, contributions from the company's two main operating division - landfill gas and onshore wind - improved, said Infinis, with continued growth in revenues and earnings before interest, taxes, depreciation and amortisation on the previous year. The firm reported 1,920 GWh of electricity at an average selling price of GBP87.90/MWh for the nine months to December 31 2013.
The landfill gas division has been performing well, supported by good output across the firms' larger sites and "satisfactory" reliability levels across the rest of the portfolio, said the company. Power generated from landfill gas, including both its non-fossil fuel obligation and renewables obligation, came in at 1,413 GWh exported in the nine months to December 31 2013. The proportion of electricity exported under the RO regime for the nine months to December 31 2013 was 76%, up from 71% on a like-for like basis for the comparable period, Infinis said.
In it onshore wind business, Infinis said it benefited from continued strong wind yields and high availability levels during the winter. During the nine months to December 31 2013 the firm exported 483 GWh under its renewables obligation.
The firms' boosted performance has also been buoyed by improvements in its hydro business after it made strategic investments in plant reliability and water intake during the summer period, exporting 24 GWh during the nine months.
Infinis said that it is continuing to make steady progress on its targeted 130-150MW delivery over the next three years from its organic onshore wind development pipeline, adding that pre-construction preparation work at the two larger consented projects, A'Chruach (43MW) and Galawhistle (55MW), continue in line with development plans. The firm expects to appoint contractors for A'Chruach in the second-half of this year.
Infinis said its financial position remains strong, with cash and equivalents at GBP70.2 million and net debt at GBP559.8 million as of December 31 2013.
During the quarter to December 31 2013, revenue was GBP43.5 million, up from GBP40.5 million last year. On a nine month basis, revenue was up 6.3% to GBP125.7 million, up from GBP118.4 million the previous year.
Earnings before interest, tax, depreciation and amortisation for the quarter came in at GBP24.0 million, up from GBP21.9 million in the comparable period in 2012. For the nine months, earnings before interest, tax, depreciation and amortisation was GBP72.6 million, boosted 9% from GBP66.6 million the previous year.
As outlined at the time of its IPO in November last year, the group completed a number of refinancings during the period, including a seven-year amortising term loan facility of GBP296 million and ancillary facilities of GBP33 million financing the operational wind farms.
During the period but prior to the IPO, the Group paid a pre-IPO dividend of GBP44.3 million to its then principal shareholder, said the company.
Following the UK Governments' final contract for difference strike prices for renewable energy technologies, published in its Electricity Market Reform Delivery Plan in December 2013, Infinis said that the CfD prices, "do not alter the support of the Groups current operating onshore wind business."
The company said that as it intends to deliver its 130-150MW targets under the RO regime, the announced strike prices are, "relevant for other projects that Infinis aims to deliver after March 2017, when the RO regime will no longer be open for new installations."
The CfD strike price for onshore wind was set, in real 2012 terms, at GBP95/MWh for projects entering generation by March 31 2017 reducing to a maximum of GBP90/MWh after that date. The Department of Energy & Climate Change also announced draft plans under which established technologies such as onshore wind and solar would be allocated CfDs through competitive auction, clarity on the competitive auction process is expected in the coming months.
Looking ahead, Inifinis said it remains committed to locking in power prices through its forward contracts in its LFG business, in line with its hedging strategy; the firm currently has approximatlye 15% of its expected LFG Summer 2014 output contracted at fixed prices under the NFFO regime, 62% contracted at fixed prices under the RO regime, and 17% contracted under the RO regime with prices yet to fix under a day-ahead PPA.
The average price achieved for the power only element of RO fixed price sales is GBP50.43/MWh for Summer 2014, said the firm.
For Winter 2014, Inifinis has contracted 13% of its expect LFG output at fixed prices under the NFFO regime, 35% under the RO regime, and 18% contracted under the RO regime with prices yet to fix under a day-ahead PPA. On avergae, the price achieved for the power only element of the RO fixed price sales is GBP52.97/MWh.
Infinis said the expected figures for Summer and Winter 2014 correspond with its expectations for the financial year to March 31 2015.
Shares in Infinis Energy were trading up 2.5% at 265.55 pence per share Wednesday morning.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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