30th Dec 2021 09:33
(Alliance News) - Prospex Energy PLC said on Thursday its El Romeral power plant in southern Spain was providing "very healthy" income as it sold electricity at record levels in the last four months.
Shares in Prospex were up 9.8% at 3.57 pence on Thursday morning in London.
The London-based gas and power company, with projects focused in Europe, holds a 50% working interest in the power plant through its interest in Tarba Energia.
From September to December, Prospex said its gross monthly income from El Romeral had averaged EUR241,000. The average spot price during the same period was EUR180 per megawatt hour, this compares to an average of EUR76 per megawatt hour between March to August, when the plant was acquired.
Prospex said this high income at the plant had been aided by its ability to run 24-hour operations regularly.
As a result of the strong electricity prices, Tarba was able to repay 40% of the EUR750,000 acquisition cost of El Romeral. Prospex's share of this EUR300,000 repayment was EUR149,700. Further repayments are expected in 2022 and Prospex said the repayment will help to bolster the company's cash flow position.
Chief Executive Mark Routh said: "With electricity spot prices at an all-time high and the forward curve looking extremely robust, I am confident that Tarba can comfortably make further loan repayments up to its shareholders over the coming year. This means that Prospex is likely to be generating a net income towards its overheads and operating costs, something which will sit very well with shareholders and potential investors alike."
By Heather Rydings; [email protected]
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