Alkane Energy PLC Trading Update and Notice of Results (9962X)
20 Gennaio 2014 - 8:00AM
UK Regulatory
TIDMALK
RNS Number : 9962X
Alkane Energy PLC
20 January 2014
20 January 2014
Alkane Energy plc
("Alkane" or "the Group")
Trading Update and Notice of Results
Notice of Results
Alkane Energy plc ("Alkane" "the Group" or "the Company") (AIM:
ALK) the independent gas to power producer, today announces an
update on trading ahead of the results for the year ended 31
December 2013 (the "period"), which Alkane will publish on 12 March
2014.
Trading Update
Trading for the year ended 31 December 2013 has remained strong
with output increasing 15% year on year. For the period, the Group
expects to deliver electricity of circa 192 GWh (2012: 167 GWh).
This increase reflects the contribution of the 11MW coal mine
methane ("CMM") facility at Maltby Colliery acquired in May 2013
which is performing ahead of plan. Alkane opened its 23rd site at
the former Prince of Wales Colliery, Pontefract in December and
this 2MW facility is an example of our organic roll out of new
capacity from our existing licence acreage.
Electricity pricing has remained stable over recent months with
an expected average base load price of circa GBP53/MWh in the year
to 31 December 2013 (2012: GBP52/MWh). As at 31 December 2013,
approximately 59% of the Group's expected 2014 output is contracted
at an average price of GBP53/MWh.
Our Power Response operations, which are connected to mains gas,
run peak winter load and offer Short Term Operating Reserve
("STOR") facilities to the National Grid. The overall STOR market
is growing and in response to this we are adding to our engine
capacity in this sector. Alkane has continued to improve its
service performance which together with growth in the market has
meant that we have seen Power Response revenue more than doubling
compared with 2012.
The Board expects that the results for the year ended 31
December 2013 will be in line with market expectations.
Commenting on the update, Chief Executive Officer, Neil O'Brien,
said:
"Alkane continues to invest in new facilities as the UK
Electricity market faces an increased risk of an energy gap over
the coming years. 2013 has seen the successful integration of the
Maltby acquisition and improved performance from our Power Response
sites. It has been our 10(th) successive year of output growth and
we remain confident of future prospects."
For more information please contact:
Alkane Energy plc
Neil O'Brien, Chief Executive
Officer
Steve Goalby, Finance Director 01623 827927
Liberum Capital Limited
Clayton Bush
Tim Graham 020 3100 2000
VSA Capital Limited
Andrew Raca 020 3005 5004
Hudson Sandler
Nick Lyon
Alex Brennan 020 7796 4133
Background information
Alkane Energy is one of the UK's fastest growing independent
power generators. The Company operates mid-sized "gas to power"
electricity plants providing both predictable and fast response
capacity to the grid. Following the completion of the acquisition
of the Maltby CMM Asset, Alkane now has a total of 83MW of
installed generating capacity and an electricity grid capacity of
102MW.
Alkane's main operations are based 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.
As CMM declines at any one site Alkane retains valuable
generating capacity and a grid connection which can be redeployed
to power response. Power response sites are connected to mains gas
and produce electricity at times of high electrical demand or in
order to balance the electricity grid. Alkane now operates 25MW of
power response on mains gas.
The Group operates from 23 mid-size (up to 10MW) power plants
across the UK, 16 CMM only, 5 mains gas only, and 2 using both fuel
sources. Alkane uses standard modular reciprocating engines 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.
Alkane has a range of core skills encompassing the entire
project development cycle including planning and permitting,
sourcing plant and managing the build and commissioning stage. This
has enabled Alkane to establish a design, build & operate
("DBO") business for third party clients in the biogas and oil
& gas industries.
The Group has more than 800km(2) of acreage under various
onshore Petroleum Exploration and Development Licences ("PEDLs").
Alkane retains a 100% interest in the majority of these PEDLs,
which extend to all of the hydrocarbons recoverable from these
licence areas. This includes any CMM, natural gas, coal bed methane
("CBM") or shale gas.
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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