Infinis Energy : plc announces second quarter results for year ending 31.03.17 £350m 7% Senior Notes due 2019

Operationally the business has performed strongly, with 97.0% engine reliability and Mean Time Between Breakdowns (MTBB) increasing to 224 hours (FY16 Q2: 217 hours). Strong operational performance and tight cost control resulted in EBITDA margin for the quarter ended 30 September 2016 of 53.4%, down from 55.1% in the quarter ended 30 September 2015.

Cash increased by £2.9m in the period closing at £67.3m, £23.7m ahead of the same period as last year.

Revenue for the quarter ended 30 September 2016 was £36.6m compared with £38.4m for the quarter ended 30 September 2015. EBITDA for the quarter ended 30 September 2016 of £19.6m, down by £1.6m against £21.2m for the quarter ended 30 September 2015.

The transition from NFFO to RO contracts continued in the period with the proportion of exported power sold under RO contracts increasing from 93% in the quarter ended 30 September 2015 to 96.8% in the quarter ended 30 September 2016. As at 30 September 2016 we have a total of three active contracts under the NFFO regime.

Exported generation in the quarter was 399.8 GWh compared with 437.6 GWh in the same quarter last year. Reported average selling price increased by £4.12/MWh (4.7%) from £87.85/MWh to £91.97/MWh.

Capital expenditure during the quarter was £3.0m (Q2 FY16: £4.3m).

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Cash at 30 September was £67.3m (Q2 FY16: £43.6m).

Net debt / last 12 months' EBITDA was 3.1x (Q2 FY16: 3.1x).

A dividend of £3.238m was paid to our shareholder, Infinis Energy Holdings Limited ("IEHL"), on 7 November 2016. The dividend was based upon the 50% consolidated net income provision and application of the next leverage test as defined in the Offering Memorandum.

As announced on 31 October 2016, Infinis Group has entered into an agreement to sell Infinis plc and its subsidiaries to 3i Infrastructure plc ("3i"). The entities to be acquired by the purchaser will also include Infinis Energy Services Limited, the provider of support and procurement services to Infinis plc and its subsidiaries. The sale, which is subject to customary closing conditions, is expected to complete by early December 2016 and will not trigger a change of control offer under the indenture governing the notes issued by Infinis plc.

3i is a Jersey-incorporated, closed-ended investment company, listed on the London Stock Exchange and regulated by the Jersey Financial Services Commission. It is a long-term investor in infrastructure businesses and assets, focused on economic infrastructure and green field projects in developed economies, principally in Europe, investing in operating businesses and projects which generate long-term yield and capital growth.

3i has communicated to Infinis plc that 3i is in discussions with a syndicate of banks to arrange a refinancing of the landfill gas business of Infinis plc. The refinancing is expected to fund the optional redemption of the 7.0% senior notes due 2019 of Infinis plc in accordance with their terms, likely during 2017.

This announcement may contain "forward looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. The words "anticipate", "expect", and other similar expressions, which are predictions or indications of future events which do not relate to historical matters, identify forward-looking statements. You should not rely on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are beyond our control and are not intended to give any assurance as to future events.

Note:

1. Revenue recognised in the period includes an accrual in respect of the recycled element of the ROC price which we expect to receive for eligible generation and is therefore included in the Reported Average Selling Price. The actual amount due is not normally known until six months after the end of the financial year and, to the extent that the payment is different from our estimates, will result in an increase or decrease in revenue recognised in the current period, which relates to a prior period, once the actual becomes known or a revised estimate of the expected amount is made. Underlying Average Selling Price removes this revenue stream for FY16 Q2.

2. The removal of the exemption from the Climate Change Levy for renewable generation from August 2015 adversely affected our revenue in the quarter to September 30, 2016 compared to the previous year. Underlying Average Selling Price therefore removes this revenue stream for FY16 Q2.

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