News blog
Alkane Energy
- BY: Andrew Hore |
- POSTED: 07/07/2010 |
Alkane Energy, which generates electricity from coal mine methane, has increased its electricity generation output by 30% in the first half of 2010.
The first quarter increase was 20%. New generating sites have been added over the past year with the latest at Florence, Staffordshire. Two more sites will be added in the second half and three more will be tested.
Prices have fallen over the past year but they have started to rise in recent months. Alkane expects a reduction in average selling price from £56/MWh in 2009 to just over £40/MWh this year. Alkane has already secured forward contracts over one-quarter of its expected output in 2011 at an average price of £46/MWh.
House broker Altium forecasts a fall in profit from £2.08m to £1.4m in 2010.
Alkane is financing new sites through a three year £5.5m revolving credit facility with Lloyds. The interest charge is 2.5 percentage points above LIBOR. This facility has the normal types of financial covenants as well as minimum electricity pricing levels and the proportion of output under contract.
This cash should help Alkane move towards its target of production of 300GWh a year.
Net debt was £1.81m at the end of 2009 but that was made up of finance lease obligations.
Interim figures will be published on 8 September.
At 16.5p a share, Alkane is valued at £15.4m.
© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
- Browse by issue
- All issues
- Popular tags
- All tags
- AIM Micro feeds
Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds
|