ENERGY DEVELOPMENTS GENERATE EARNINGS UPGRADE
26 March 2015,
FAVOURABLE market conditions has prompted Energy Developments Limited (ASX:ENE) to boost its annual profit forecast.
The energy solutions provider upgraded its full year guidance range of earnings before interest tax depreciation and amortisation (EBITDA) to be in the range of $211 to $216 million compared to $205 to $210 million previously.
It follows a solid first half for the company, which reported net profit after tax of $19.5 million and a 14 per cent lift in EBITDA of $96.1 million.
Favourable market conditions are expected to drive growth in the second half, including high summer electricity pricing events in Queensland, improved large-scale generation prices and a lower Australian dollar.
ENE managing director Greg Pritchard says the combination of pricing conditions and first half results favour the company.
"The company's strong performance to date reflecting the factors and the current operating performance and environment gives the board the confidence to uplift EBITDA guidance to $211 to $216 million," Pritchard says.
"The company is on track to generate another year of strong operating cash flow from its diversified portfolio of clean energy and remote energy projects.
"EDL remains well positioned and capitalised for accretive growth, with a number of near term opportunities being actively pursued."
The company is positioned to capitalise on a number of projects in the second half, including a number of power distribution acquisitions.