7th Jul 2014 09:14
LONDON (Alliance News) - Alkane Energy PLC Monday said its electricity output levels were down during its first half as the UK's Maltby power plant was offline to await the closure of its colliery.
The company, which produces power from methane produced in former coal mines, said trading for the six month period ending June 30 has seen a 9.6% fall in its total electricity output to 85 gigawatt hours from 94 gigawatt hours in the previous year.
The company said its electricity output was down as the Maltby site was offline for the majority of the spring period as a closure of its colliery was being completed.
Alkane said the group has seen record weekly baseload output since the site came back into operation, and it expects to achieve further output from its acquisition of the 10 megawatt Wheldale power response systems in February. It said that the improvements mean it should achieve substantially higher production in its second half.
The company also noted that it will book a one-off profit of GBP9 million before tax in the first half results after selling its shale rights in certain licences to Egdon Resources PLC during the period.
Alkane said its project pipeline is progressing well with drilling due to start in the third quarter at the Markham Main coal mine in Yorkshire.
"We are pleased to see progress in the overhaul of the power response fleet and in the work we have been doing at Maltby, and we have been rewarded in recent weeks with record production for the group. We look forward to a strong second half of the year," Chief Executive Officer Neil O'Brien said in a statement.
Alkane Energy shares were up 0.4% to 42.15 pence on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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