Alkane Energy achieves annual revenue increase as output grows

Alkane Energy reported a 54 per cent increase in 2012 revenue on Wednesday as the gas to power producer achieved its eighth successive year of output growth.

The company posted revenue of £14.7m, up from £9.5m the previous year, as output rose 19% to 167 gigawatt-hours.

Group profit before tax increased 44% to £2.9m while earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 37% to £5.8m.

Alkane, now the largest coal mine methane operator in UK, said it achieved an intake of third party contracts worth £9.8m, opened a new site at Gedling and recommissioned a site at Askern which added 5.0 megawatts to capacity.

In April, Alkane completed the acquisition of Greenpark for a consideration of £4.9m, bolstering output and power response operations.

Average power prices of £53 megawatt-hours (MWh) were achieved during the year, compared to £51 MWh, which also boosted revenues.

Operating cash flow rose to £6.5m from £4.4m. The firm proposed a maiden dividend of 0.1p per share.

Chief Executive Officer, Neil O'Brien, said: "The successful acquisition of Greenpark has provided Alkane with the scale to significantly benefit from the well publicised looming energy gap requiring additional and responsive generators.

"We will continue to invest in building our portfolio of mid-sized power plants and look forward to another year of progress in 2013."

Shares rose 4.26% to 30.63p at 10:27 Wednesday.

RD