10th Sep 2014 08:37
LONDON (Alliance News) - Alkane Energy PLC Wednesday reported an increase in profit in the first half of 2014, during what it called a "transformational period".
The company posted pretax profit of GBP7.3 million for the six months ended June 30, up from GBP1.0 million a year earlier. The recent period was boosted by a one-off expectational profit of GBP10.0 million related to the transfer of licences to Edgon Resources PLC of shale rights in 10 of its 21 licences.
Revenue, however, dipped to GBP7.1 million from GBP11.1 million a year earlier. Revenue in the core generation business fell to GBP6.0 million from GBP6.4 million, but there was an expected decrease in revenue from the design, build and operate business to GBP1.1 million from GBP4.7 million a year earlier. Revenue in the previous-year period included GBP2.9 million from a one-off contract for refurbishment work at Three Nooks Farm, Staffordshire.
At an operating level, the company said the transfer of its share gas interest to Egdon Resources, completed in June, was an important strategic agreement for Alkane.
"It will enable us to benefit from the potential upside not only from the development of shale gas in the UK but also from Egdon's conventional oil and gas exploration and production whilst we remain firmly focused on growing our core gas to power business," Alkane said.
Alkane said Power Response, which it started in 2009, is growing strongly to form a substantial and complementary business alongside base-load coal mine methane operations.
With the acquisition of Wheldale from SSE PLC in February and the three newest sites acquired in July from Carron Energy Ltd and Dragon Generation Ltd, Alkane said it has reached 93 megawatts of power response capacity, close to its objective of having 100 megawatts in place by spring of next year.
Alkane said the first half of 2014 was "transformational" for the group.
"We have invested for the future and completed important transactions positioning the business for further long term growth," Chief Executive Neil O'Brien said in a statement. "We have also enhanced our power response capacity by more than 150%, providing Alkane with a broader and more balanced generating portfolio and giving scale to a business with exceptional growth opportunities,"
An previously declared annual dividend of 0.2 pence per share was paid in May, compared with 0.1 pence per share a year earlier. Alkane pays no interim dividend.
Alkane Energy shares were quoted up 1.3% at 38.75 pence Wednesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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