ACQUISITIONS POWER UP ENERGY DEVELOPMENTS PROFIT
Written on the 17 August 2015
ENERGY Developments' (ASX: ENE) bottom-line profit surged 26 per cent last financial year, buoyed by acquisitions and a weaker Aussie dollar.
The Brisbane-based power company delivered a net profit of $57 million in FY15, up from $45.4 million a year earlier.
EBITDA rose 20 per cent, or $36 million, to $218.2 million, while total revenue edged 6 per cent higher to $448.7 million.
The latest result has been boosted by a $4.1 million currency gain on US and European earnings, as well as higher wholesale electricity prices in Queensland which offset reductions from the abolition of the carbon tax.
Energy Developments' result has been aidedby full-year contributions from McArthur River Mine expansion and the Envirogen assets acquired in April last year. The result also benefitted from the Moranbah North Expansion and higher electricity contract pricing in the US.
Envirogen was particularly strong, doubling its earnings and increasing generation by 50 per cent.
Managing director Greg Pritchard says another solid year for project development is already in the pipeline, with Energy Developments (EDL) recently announcing an agreement with mining company Anglo American for the development of a 21MW waste coal mine gas power station in the Bowen Basin.
"Signing this new agreement is testament to the important strategic relationship which EDL has developed over the years with Anglo American, and highlights EDL's strong project development pipeline," says Pritchard.
"EDL is also well advanced in progressing a number of other value accretive development opportunities which are expected to be finalised in the near term and announced to the market."
Energy Developments is subject to an $8-per-share bid by DUET Group, which owns energy assets in Victoria and Western Australia.
The Energy Developments board has backed the scheme of arrangement for the takeover, which is expected to go to a shareholder vote in October.
Due to the terms of the scheme, no final dividend will be paid.