FY15 Interim Financial Results
nfigen Energy (ASX: IFN) today released its interim financial results for the 2015 financial year.
Infigen reported a Statutory Profit for the six month period ended 31 December 2014 of $1.6 million, an improvement of $16.9 million compared with the Statutory Loss of $15.3 million for the prior corresponding period (pcp).
Financial performance over the period was consistent with the pcp, with the improvement in the result for the period primarily attributable to the non-recurrence of interest rate swap terminations in the pcp. Higher revenue from US solar PV activities, higher net income from US Institutional Equity Partnerships (IEPs), and a greater cash distribution from Infigen’s US Class A cash flow interests for a full six-month period were offset by lower revenue in Australia due to poor wind conditions.
SUMMARY OF PERFORMANCE (ECONOMIC INTEREST)
Key measures of business performance compared to the pcp are:
- Safety record of lost time injury frequency rate: Improved 48% to 1.2
- Production: Decreased 6% to 2,103 GWh
- Revenue: Decreased 6% to $139.6 million
- EBITDA: Decreased 14% to $67.7 million
- Net profit: Improved 110% to $1.6 million
- Operating Cash Flow: Increased 103% to $49.7 million
Infigen’s Managing Director, Miles George, said, “We are pleased to report a $1.6 million net profit for the period notwithstanding poor wind conditions and electricity prices in Australia.”
“During the period we repaid $33.9 million of borrowings across our Global Facility, Woodlawn facility and Union Bank facility, and used $12.9 million of cash to repay Class A members,” he said.
Group revenue of $139.6 million, down 6% or $9.7 million, reflected lower overall production and electricity prices, offset by a declining Australian dollar, higher compensated revenue, and higher Australian LGC and US REC revenues.
Operating earnings before interest, tax, depreciation and amortisation (Operating EBITDA) was $78.1 million, down 13% or $12.0 million. This was due to:
- In Australia – lower revenue partially offset by higher compensated and LGC revenues, and lower operating costs; and
- In the US – marginally higher revenue including US$4.0 million from solar PV activities, partially offset by lower merchant electricity prices and higher operating costs.
POWER PURCHASE AGREEMENT
In the US, we secured power purchase agreements for the Rio Bravo I & II (20 MW each) and Wildwood II (15 MW) solar PV projects during the period.
In the US, we expect both full year production and average portfolio price to be in line with FY14, while in Australia, we expect both full year production and average portfolio price to be approximately 10% lower than in FY14.
Full year operating costs in the US are forecast to be at the upper end of the guidance range of between US$76-78 million, and Australian operating costs are forecast to be near or below the lower end of the full year guidance range of $35-37 million.
Subject to these operating conditions prevailing, Infigen remains on track to achieve its previous guidance of approximately $90 million of cash flow available to repay Global Facility borrowings and pay distributions to Class A members.
Infigen’s Managing Director, Miles George, said, “Looking to the second half of the year we continue to seek resolution of the regulatory uncertainty that has frozen investment opportunities in the Australian large-scale renewable energy sector. The ongoing uncertainty continues to adversely affect Infigen’s financial performance, and is eroding investor confidence in Australia as a safe place to invest in major infrastructure projects.”
For further information please contact:
Group Manager, Investor Relations and Strategy
T +61 2 8031 9900