LONDON (Alliance News) - Infinis Energy PLC Thursday said it delivered a solid performance in its fiscal first quarter, with a small drop in profits for its landfill gas subsidiary despite increased revenue, meaning it only partially offset the difficult conditions for its onshore wind arm.
Pretax profits for the FTSE 250-listed energy firm's landfill gas unit in the three months to June 30 were slightly lower at GBP23.6 million, against GBP24.2 million last year, despite a small uptick in revenues to GBP42.6 million from GBP41.9 million last year.
Infinis said performance for the landfill gas unit has been solid, despite exports from the unit falling 2.7% to 463 gigawatt hours in the quarter to 30 June from 476 GWh last year. That fall came alongside a rise in the total average selling price to GBP89.08 per megawatt hour, up GBP4.24 per MWh on the same period last year.
The group said its onshore wind business exported 104 GWh in the three months to 30 June, all under the UK government's Renewables Obligation scheme, an incentive for renewable electricity provision in the UK. That figure is around 50 GWh lower than the comparative period last year due to the low wind speeds experienced across the UK in the period.
The onshore wind business was also hit by a decline in the average selling price to GBP88.06 per MWh, GBP5.20 per MWh lower than the GBP93.26 per MWh price achieved last year, primarily due to lower wholesale power prices.
Infinis said it expects a good performance from its landfill gas unit in the financial year, backed by predictable generation and the migration to Renewable Obligation contracts. But it sounded a note of caution on its onshore wind arm, saying that though it is positioned well to benefit from a recovery in wind speeds, the business continues to be impacted by the lower wind speeds and softer day-ahead prices.
The company said it will pay its first dividend as a listed company on August 28 and "remains on track to deliver on its dividend commitments". It said it had cash and cash equivalents of GBP99 million and net debt of GBP527 million on June 30.
Infinis shares were up 1.3% to 213.01 pence early Thursday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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