9th Sep 2015 08:34
LONDON (Alliance News) - Gas-to-power producer Alkane Energy PLC on Wednesday said its pretax profit was lower in the first half due to a big gain a year earlier not repeating, but underlying pretax profit was sharply higher as the group's revenue and power output both increased.
Alkane said its pretax profit for the six months to the end of June was GBP1.4 million, down from GBP7.3 million a year earlier, though the year before was almost entirely driven by a GBP10.0 million one-off gain the company made on the transfer of licences it held.
Adjusting its pretax profit to remove exceptional items, the company's pretax profit came in at GBP1.4 million, nearly triple the GBP500,000 it made a year earlier.
Revenue was up by 23% in the half to GBP8.7 million from GBP7.1 million, while core power generation revenue was up to GBP8.6 million from GBP5.9 million. Total power output for the company was up by 106 gigawatt hour, up 25% year-on-year, with the group's Maltby and Carron Energy sites now both fully operational.
"These strong results reflect the success of the investments we have made in both the coal mine methane and power response businesses. Against a backdrop of looming energy capacity shortage, combined with National Grid's initiatives to boost supply margins, Alkane's flexible, low cost portfolio of assets leaves the company well placed to make further progress," said Chief Executive Neil O'Brien.
Shares in Alkane were down 5.5% to 24.00 pence on Wednesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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