ACQUISITIONS POWER UP ENERGY DEVELOPMENTS PROFIT

ACQUISITIONS POWER UP ENERGY DEVELOPMENTS PROFIT

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.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Advertisement

Related Stories

Brisbane biotech to trial world-first COVID-19 immunotherapy treatment

Brisbane biotech to trial world-first COVID-19 immunotherapy treatment

Brisbane and Seattle-based biotechnology company Implicit Bioscie...

Federal Court finds Google misled consumers on data collection

Federal Court finds Google misled consumers on data collection

The Federal Court has found Google misled consumers about persona...

Redflow charging up ahead of next-gen battery launch

Redflow charging up ahead of next-gen battery launch

Redflow (ASX: RFX) is gearing up to launch the next generation of...

Mayne Pharma breakthrough as FDA approves new contraceptive with plant-based estrogen

Mayne Pharma breakthrough as FDA approves new contraceptive with plant-based estrogen

A bet made by Mayne Pharma (ASX: MYX) in 2019 has paid off today ...