Shares in Mytrah Energy (MYT) leapt 9 per cent on news that improved operating capacity helped boost revenues by 37 per cent in 2014. The India-based wind energy company has increased its generating capacity by 75 per cent since the end of 2013, meaning its turbines can now produce 543MW of electricity.
The extra capacity has come in time for the imminent 2015 monsoon season, which should lead to a further increase in revenues and underlying earnings this year. A further 300MW of capacity is under construction, two-thirds of which should come online for next year's monsoon.
Massive operational expansion comes at a price, though. Finance costs rose by $14.5m (£9.7m) during 2014, owing to an increase in Mytrah's term loans and interest charges on operating assets. Net debt now sits at $442m, up from $355m at the end of 2013, although two senior loans have been refinanced on better terms. The group is confident that borrowing remains its best option for raising capital, given the competitive rates to which it has access.
Broker Investec forecasts normalised pre-tax profits of $15m and EPS of 8.4¢ this year, rising to $28m and 15.6¢ in 2016.
| MYTRAH ENERGY (MYT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 85p | MARKET VALUE: | £139m | |
| TOUCH: | 83.25-86p | 12-MONTH HIGH: | 100p | LOW: 62p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 110 | |
| NET ASSET VALUE: | 45¢ | NET DEBT: | 344% | |
| Year to 31 Mar | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | nil | -1.2 | -1.0 | nil |
| Year to 31 Dec | ||||
| 2012* | 30.9 | 13.2 | 7.3 | nil |
| 2013 | 50.9 | 8.4 | 4.2 | nil |
| 2014 | 69.6 | 2.3 | 1.1 | nil |
| % change | +37 | -73 | -73 | - |
Ex-div: na Payment: na *Nine-month period to 31 Dec 2012 £1=$1.49 | ||||
