LONDON (Alliance News) - Alkane Energy PLC Wednesday said 2015 has started well, as it posted a rise in pretax profit for 2014 when gains from transferring its shale gas assets offset a decline in revenue and impairment charges.
The gas-to-power producer proposed a total dividend of 0.3 pence for 2014, up from 0.2 pence in 2013.
The company posted a pretax profit of GBP3.2 million, up from GBP2.7 million a year before, despite seeing revenue decline to GBP16.0 million from GBP20.6 million, as a GBP10.0 million profit from the transfer of its shale gas interests to Egdon Resources PLC and lower cost of sales offset impairment charges.
The company transferred some licences to Egdon in exchange for 40 million shares in the company, valued at GBP10.5 million. Egdon's share price has since fallen from the time when the company acquired the shares, resulting in a GBP5.0 million impairment charge, and it has taken a further impairment charge of GBP4.1 million in relation to all of its assets.
Excluding these exceptional costs, pretax profit was GBP3.3 million, down slightly from GBP3.4 million.
The decline in revenue came from lower revenue from its design, build and operate business, which returned to more normal levels after an exceptionally busy 2013.
Shares in Alkane are trading down 1.1% at 20.78 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Alkemy Capital. (ALK)