INFINIS ENERGY PLC 10 February 2016
Revenue for the quarter ended 31 December 2015 was £41.5m compared with £43.8m for the quarter ended 31 December 2014. EBITDA for the quarter ended 31 December 2015 was £23.9m compared with £24.3m for the quarter ended 31 December 2014.
Revenue in the period was adversely affected by £2.0m less being earned from the sale of LECs compared with the comparative period due to government removing the exemption from the Climate Change Levy for renewable generation from August 2015. In addition exported generation was 35 GWh lower than the comparative period and revenue from traded power and other income was a net £0.3m lower as well.
EBITDA in the period was adversely affected by the reduction in revenue partly offset by lower costs.
Quarter ended 31 December 2015 | Quarter ended 31 December 2014 | |
Exported Generation | 432 GWh | 467 GWh |
Reported Average Selling Price | £92.84/MWh | £90.26/MWh |
Underlying adjusted ASP1 | £92.81/MWh | £91.05/MWh |
Exported generation in the quarter was 432 GWh compared with 467 GWh for the same quarter last year. The reduction of 35 GWh (7.4%) was mainly due to the natural decline in landfill gas at closed sites and lower atmospheric pressure conditions resulting in a decrease in available gas for generation compared to FY15 Q3.
The transition from NFFO to RO contracts continued in the year with the proportion of sales under RO contracts increasing from 92% in the quarter ended 31 December 2014 to 94% in the quarter ended 31 December 2015.
Reported average selling price increased by £2.58 / MWh (2.9%) from £90.26/MWh to £92.84/MWh.
Underlying adjusted average1 selling price increased by £1.76/MWh (1.9%) from £91.05/MWh to
£92.81/MWh.
1
Capital ExpenditureCapital expenditure during the quarter was £2.7m (Q3 FY15: £5.0m). Expenditure in the quarter was £2.3 million less than the quarter ended December 31, 2014 due primarily to an extension to engine overhaul intervals and lower expenditure on both new gas collection infrastructure at open sites and equipment to manage gas compliance. Going forward we expect maintenance annual capital expenditure to decrease year on year.
Cash and Net Debt / EBITDACash at 31 December was £67.0m (Q3 FY15: £54.8m).
Net debt / last 12 months' EBITDA was 2.9x (Q3 FY15: 3.0x).
DividendsNo dividend was paid to our shareholder, Infinis Energy Holdings Limited ("IEHL"), in the quarter ending December 31, 2015.
Loan to Infinis Capital Limited (parent company to IEHL)On 25 January 2016 Infinis plc and Infinis Capital Limited entered into a Loan Agreement whereby Infinis plc would advance loans of up to £20m at an annual interest rate of 9%. The loan is repayable on demand in writing on or after 31 December 2016. The interest is calculated on a daily basis and is payable in cash on 31 March and 30 September each year. Subsequent to the agreement a loan of £20m was drawn down on 25 January 2016.
Recommended Cash Acquisition of Infinis Energy Limited (formerly Infinis Energy plc)As previously disclosed, Infinis Energy Limited, the ultimate parent of the bond group, received an offer from Monterey Capital II S.à r.l., its largest shareholder, to acquire the entire ordinary share capital which it did not already own on 22 October 2015. The acquisition to be implemented by means of a court sanctioned Scheme of Arrangement under Part 26 of the Companies Act was approved on 17 December 2015 by the High Court of Justice of England and Wales. The Court Order was subsequently delivered to the Registrar of Companies in England and Wales and became effective the same day. On 14 January 2016 Infinis Energy plc re-registered from a public limited company to a private limited company.
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 from Ofgem for eligible generation and is therefore included in the Reported Average Selling Price. The actual amount due from Ofgem 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, may result in an increase or decrease in revenue recognised in the period (in respect of the previous year) once the actual becomes known or a revised estimate of the expected amount is made. Underlying adjusted Average Selling Price aligns recycled ROC payments to the period in which they were earned and adjusts for the loss of income from the sale of LECs due to Government removing the exemption from the Climate Change Levy ("CCL") for renewable generation from August 2015. .
2
Conference ID: 37161501Infinis Energy plc issued this content on 10 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 10 February 2016 09:00:21 UTC
