Infinis Energy 2015 final Results

DividendMax Ltd.

Infinis Energy 2015 final Results

Financial and operating highlights

Revenue of £236.0 million, 1.0% lower than the prior year

  • LFG revenue and gross profit were 5% higher than last year;
  • Lower contribution from our Wind business due to lower wind speeds;
  • Weaker wholesale power prices for assets priced on a day-ahead basis;

EBITDA before operating exceptional items of £142.8 million was 3.8% lower than the prior year;

Strategic divestment of our non-core Hydro business for £20.5 million in February 2015, the proceeds of which will be reinvested in our onshore wind pipeline;

Net debt reduced to £534.7 million and leverage was flat year on year at 3.7x;

Final dividend declared of 12.2 pence per share, bringing the total dividend for the year to 18.3 pence per share.

Outlook

Our landfill gas and wind businesses are performing in line with expectations. Due to our contracted position, combined with 50% of expected revenues increasing in line with inflation, we have good visibility of cash generation for the coming year. The increase in the carbon price floor to £18 per tonne of CO2 on 1 April 2015 and the ongoing tightness of the reserve margin during the Winter season are supportive of wholesale power prices for Summer and Winter 2015;

Our onshore wind capacity growth plans are on track with A'Chruach (43 MW) in full construction. Pre-construction work has begun at Galawhistle (66 MW) with financial close expected shortly. Sisters (8MW) is at advanced stages of contract negotiation. Our IPO commitment to increase operational wind capacity by 130 to 150 MW by March 2017 remains unchanged;

We have a strong operational platform and a track record of delivery which we believe will allow us to take advantage of opportunities for further growth in the clean and affordable energy space in the future.

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