Infinis Energy (INFI) continues to benefit from higher regulatory prices for green energy, as the government works to triple the share of renewables in the country’s energy mix by 2020. But in the six months to September this was offset by unusually calm summer weather, which sapped output from its wind-turbines. Strip out last year's flotation costs and net income fell from £2.4m to £2m.
Sales from the wind business dropped about a quarter to £17.8m, not helped by lower wholesale prices. Fortunately, this was largely offset by a strong performance from landfill gas (LFG), which accounts for the vast majority of Infinis's output. The division sold more power under more lucrative renewable-obligations contracts: the adjusted average selling price rose from £85.80 to £90.14 per MWh. That helped boost LFG sales by £4m to £86.1m.
The company expects stronger winds during the second half, when typically 60 per cent of its wind power is generated, according to chief executive Eric Machiels. Infinis has also continued to progress towards its target of commissioning 130-150MW of new wind capacity by 2017. Work has started on its A'Chruach wind farm, and it has begun the procurement process for its Galawhistle site. These developments are expected to generate a further 98MW of power, diversifying the business away from LFG, where output is in decline.
Broker Barclays expects full-year adjusted EPS of 14.8p, up from 13.7p in 2013-14.
INFINIS ENERGY (INFI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 228p | MARKET VALUE: | £684m | |
| TOUCH: | 228-229p | 12-MONTH HIGH: | 277p | LOW: 197p |
| DIVIDEND YIELD: | 5.6% | PE RATIO: | na | |
| NET ASSET VALUE: | 98p* | NET DEBT: | 187% | |
| Half-year to 30 Sept | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 107 | -4.9 | 0.8 | na** |
| 2014 | 105 | 2.6 | 0.7 | 6.10 |
| % change | -2 | +154 | -13 | - |
Ex-div: 20 Nov Payment: 11 Dec *Includes intangibles of £478m, or 159p per share **Prior to listing on 20 Nov 2013 | ||||
