Alkane Energy PLC AGM Statement and Trading Update (7750L)
April 30 2015 - 2:01AM
UK Regulatory
TIDMALK
RNS Number : 7750L
Alkane Energy PLC
30 April 2015
30 April 2015
Alkane Energy plc
("Alkane" or the "Group")
AGM Statement and Trading Update
The Board of Alkane Energy plc, the independent gas to power
producer, will make the following statement on current trading at
the Group's Annual General Meeting to be held at 11.00am today.
The encouraging step change in performance we saw during H2 2014
has continued into the start of 2015. Overall output in the first
three months of 2015 has increased by 26% to over 60GWh (2014:
48GWh). Alkane's strategic move into power response accelerated
with the four sites acquired last year and we are therefore
benefiting from increased winter and availability payments.
Consequently the increased output and system payments have resulted
in a 43% revenue increase in the core generation business during
the first three months of the year in comparison to 2014.
Market selling prices for base load output have seen downward
pressure since the final quarter of 2014. Nevertheless we continue
to forward contract in the market and the Group now has 86% of
expected 2015 base load output contracted at GBP52/MWh, 45% of
expected 2016 output contracted at GBP50/MWh and 6% of expected
2017 output contracted at GBP50/MWh.
Neil O'Brien, Chief Executive Officer, commented:
"The strategic investments made in 2014 have provided the strong
momentum we have experienced in the first three months of 2015. As
a result we are confident of making further progress in the current
year."
Notes to Editors
For more information please contact:
Alkane Energy plc
Neil O'Brien, Chief
Executive Officer
Steve Goalby, Finance
Director 01623 827927
Liberum
Clayton Bush 020 3200 2000
VSA Capital Group Limited
Andrew Raca 020 3005 5000
Hudson Sandler
Nick Lyon
Alex Brennan 020 7796 4133
Background information
Alkane is one of the UK's fastest growing independent power
generators. The Company operates mid-sized "gas to power"
electricity plants providing both base load and fast response
capacity to the grid. Alkane has a total installed generating
capacity of 145MW and an electricity grid capacity of 160MW.
Alkane's base load operations, where power is generated 24/7,
are centred on a portfolio of coal mine methane ("CMM") sites.
Alkane has the UK's leading portfolio of CMM licences, enabling the
Company to extract gas from abandoned coal mines.
Power response sites are connected to mains gas and produce
electricity at times of high electrical demand through peak
running, or in order to balance the electricity grid through
participation in the National Grid's short term operating reserve
programme ("STOR"). Participants in STOR are paid premium rates
when called upon by the Grid to meet temporary supply shortages.
Alkane now operates 98MW of power response, one of the UK's largest
power response businesses, with contracted STOR revenues extending
out to 2025.
Alkane has been awarded 101MW of Capacity Mechanism Agreements
starting from October 2018, with 55MW existing sites being secured
on one year agreements and 46MW new sites on 15 year agreements
over the period to September 2033.
The Group operates from 27 mid-size (up to 25MW) power plants
across the UK, 13 CMM only, seven mains gas only, six using both
fuel sources and one using kerosene only. Alkane uses a combination
of standard modular reciprocating engines and gas turbines to
generate the electricity and sells this power through the
electricity network. The engine units and other plant are designed
to be flexible and transportable allowing additional capacity to be
brought onto growing sites and underutilised plant to be moved to
new sites to maximise efficiency.
In June 2014 Alkane transferred its shale gas interests to Egdon
Resources plc. It received 40 million Egdon shares making it the
largest shareholder in Egdon, the UK's third largest shale
operator.
More information is available on our website
www.alkane.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEAELNADNSEAF
Alkemy Capital Investments (LSE:ALK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Alkemy Capital Investments (LSE:ALK)
Historical Stock Chart
From Apr 2023 to Apr 2024