Alkane Energy PLC Notice of Results and Trading Update (1890S)
July 06 2015 - 2:00AM
UK Regulatory
TIDMALK
RNS Number : 1890S
Alkane Energy PLC
06 July 2015
6 July 2015
Alkane Energy plc
("Alkane" or the "Group")
Notice of Results and Trading Update
Notice of Results
Alkane Energy plc (AIM: ALK) the independent gas to power
producer, today announces an update on trading ahead of the half
year results for the six months ended 30 June 2015 (the "period"),
which Alkane will publish on 9 September 2015.
Trading Update
Trading for the period ended 30 June 2015 has seen electricity
output of circa 106GWh (H1 2014: 85GWh). Core generation revenue is
expected to be circa GBP8.5m (H1 2014: GBP5.9m). These increases
are a reflection of the full year impact of the Carron Energy sites
bought in 2014 along with encouraging base load production from the
portfolio of coal mine methane ("CMM") sites. Power response
activity in short term operating reserve ("STOR") has seen
progressive improvement since the start of the year.
As at 30 June 2015, approximately 90% of the Group's expected
2015 base load output is contracted at an average price of
GBP52/MWh (June 2014: GBP53/MWh). In addition, we have contracted
45% of the expected base load output for 2016 at GBP50/MWh.
We have commenced the build phase of our 28(th) power plant, a
base load CMM site at Markham Main in South Yorkshire, which is to
start production in H2 2015.
Commenting on the update, Chief Executive Officer, Neil O'Brien,
said:
"We are delighted with the 25% increase in output and greater
than 40% increase in generation revenue, which is a reflection of
successful delivery on the Alkane growth strategy. Supply margins
have tightened in the UK power market over recent years and the
Board believes that Alkane's flexible and cost effective operating
model leaves it well placed to benefit from this industry
trend."
Notes to Editors
For more information please contact:
Alkane Energy plc
Neil O'Brien, Chief
Executive Officer
Carl Kameen, Finance
Director 01623 827927
Liberum
Clayton Bush
Josh Hughes 020 3200 2000
VSA Capital 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. In return 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
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