Stobart Group Limited Supply Agreement with Glennmont Partners (0860D)
26 Gennaio 2015 - 8:00AM
UK Regulatory
TIDMSTOB
RNS Number : 0860D
Stobart Group Limited
26 January 2015
26 January 2015
Stobart Group Limited
("Stobart" or the "Group")
Long-term Supply Agreement with Glennmont Partners on 40.0MWe
Biomass Plant
The Board of Stobart Group Limited, the Support Services and
Infrastructure group, is pleased to announce the signing of a
14-year index-linked fuel supply agreement in relation to a project
to construct a 40MWe waste wood-fuelled biomass plant near Margam,
South Wales ('Margam'), which has successfully achieved financial
close.
The fuel supply agreement is the largest supply contract by
volume entered into by the Group.
Highlights
Margam is scheduled to commence operations in March 2017 and
will generate revenue for the Group's Energy Division.
-- Stobart Energy will source, process and supply 250,000 tonnes
p.a. of recycled waste wood to Margam over 14 years equating to
3.5m tonnes over the life of the agreement (equating to a total
contract value in excess of GBP110m).
-- Stobart Energy's Transport business will also be responsible
for transportation of the product delivering 250 loads each week to
Margam over the 14-year agreement, generating additional revenue
for the Energy Division.
-- Following on from the recent announcement by the Group on the
Widnes Biomass Project, the volumes to be supplied under the Margam
agreement mean that we have now secured 50% of the increase
required to achieve Stobart Energy's fuel supply target of 2m
tonnes p.a. by 2017/18 from the 1m tonnes pa we currently
supply.
-- The Developer of the Project is Eco2 (developer of other
biomass projects at Sleaford, Snetterton, Port Talbot and
Brigg).
-- The build period will be 24-26 months, with commissioning
scheduled for early 2017 and operations to commence in March
2017.
-- Stobart Group is not involved in the financing of the
project, which is being funded by equity from Glennmont Partners
and project finance from a club of lenders.
Richard Butcher, CEO Stobart Energy & Infrastructure
commented,
"This agreement secures an attractive supply contract for the
Group and will contribute significantly to our target of supplying
2m tonnes of fuel per annum into the UK biomass market by 2017/18.
We supply 1m tonnes per annum at present.
Coupled with the recent successful financial closure on the
Group's Widnes Biomass Project, this agreement confirms we are
firmly on track to achieve our strategic aims in this sector and
reinforces our position as the number one supplier of biomass in
the UK"
Enquiries:
Stobart Group +44 20 7851 9090
Andrew Tinkler, Group Chief
Executive Officer
Richard Butcher, CEO Energy
& Infrastructure
Redleaf PR +44 20 7382 4730
Emma Kane Stobart@redleafpr.com
Rebecca Sanders-Hewett
Charlie Geller
influence Associates +44 20 7287 9610
Stuart Dyble
James Andrew
Notes to Editors
-- Focus on Energy and Aviation: Stobart Group is an
Infrastructure and Support Services business deriving income from
Energy, Aviation, Civil Engineering and Investments. Its strategy
is to drive growth and profitability in Energy and Aviation.
-- Growing volumes: Stobart sources, processes and delivers fuel
to power plants for third parties under long-term contracts.
Revenue growth comes from the on-going increase in tonnages
supplied, which exceeded 900,000 tonnes in the year to February
2014.
-- Growing passenger numbers:Capital expenditure to develop
London Southend Airport is largely complete with the extension of
the terminal increasing capacity from one to five million
passengers. Growing passenger numbers from a broadly fixed cost
base will drive profitability.
-- Realising value: Stobart will continue to maximise value from
its property Investments to support maintained dividends.
-- Value creation: The Group realised a 51% interest in its
Transport & Distribution business and used the proceeds to
reduce its debt significantly, invest in its Infrastructure and
Energy divisions and return funds to shareholders.
-- Investing for growth: Stobart plans to invest in minority
stakes in sustainable biomass and anaerobic digestion plants over
the next two years.
-- Strong board: Stobart has a strong board led by its' Chairman
Iain Ferguson CBE, former Tate &
Lyle CEO along with three new Non-Executive Directors
This information is provided by RNS
The company news service from the London Stock Exchange
END
AGRKMGZMGKLGKZZ
Grafico Azioni Esken (LSE:ESKN)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Esken (LSE:ESKN)
Storico
Da Lug 2023 a Lug 2024