Infinis Investor Relations

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Infinis Energy(INFI) Fundamentals

Infinis was established as an independent company in May 2006 prior to Terra Firma, the private equity group, selling the Waste Recycling Group Limited (WRG), its former parent company, in July 2006. Since then, our business has grown both organically and by strategic acquisitions.

Infinis Energy is the third largest renewable power
generator in the UK. It operates three technologies:
landfill gas (about 40% market share), onshore wind
and hydro.

Infinis Energy owns and operates 147 power plants
distributed across the UK and has a total installed
capacity of 621 MW. In the last financial year Infinis
Energy generated 2.5TWh of clean, reliable and
relatively affordable power, enough to meet the needs
of more than 1 million electricity users.

Interim Management Statement

Group operating and financial performance

We have delivered a solid operational performance for the Period, driven by our landfill gas ("LFG") business which has partially offset lower wind speeds experienced by our onshore wind business.

We are pleased with our LFG business which continues to perform well. LFG delivered strong output across the portfolio and satisfactory reliability levels. We exported 463 GWh in the three months to 30 June 2014 compared to 476 GWh during the corresponding period in the prior year, a decline of 2.7% which was slightly better than expectations. We have continued to make good progress on NFFO to RO conversions. The proportion of electricity exported under the RO regime for the three months to 30 June 2014 was 84% compared to 74% for the comparative period in 2013. The total average selling price ("ASP")(2) for the June quarter was £89.08/MWh, an increase of £4.24/MWh on the comparative period.

Our onshore wind business exported 104 GWh in the three months to 30 June 2014, all of it under the RO regime. This was approximately 50 GWh lower than the comparative period and was due to low wind speeds experienced across the UK throughout the Period. The availability of our wind farms was 96% for the Period. We noted at the time of our Preliminary Results in June that wholesale power prices had softened due to lower gas prices which was partly due to the mild winter. The wind ASP for the quarter to June 2014 of £88.06/MWh was £5.20/MWh lower than the comparative period of £93.26/MWh and was predominantly due to lower wholesale power prices.

Our hydro business is benefiting from the investments in capital expenditure made in the prior year. We exported 5.3 GWh in the three months to 30 June 2014, 1.7 GWh ahead of the comparative period.

The company will pay its first dividend as a listed company on 28 August 2014 and remains on track to deliver on its dividend commitments.

Onshore wind development activities

We continue to make good progress on the A'Chruach project (43MW) with key turbine procurement and PPA contracts and project finance facilities in the process of being finalised. Pre-construction preparation work for Galawhistle (55MW) continues to be in line with project development plans. Both projects are expected to be built under the RO regime and both projects will only begin construction once the outcome of the Scottish referendum, and its potential effect on energy policy, is known.

We continue to make steady progress on the development pipeline and remain well on track to achieve our target of delivering 130-150MW in the next three years.

Financial position

We continue to maintain a strong financial position. Cash and cash equivalents stood at £99 million as at 30 June 2014 and net debt at the same date was £527 million.

Contracted position

The Group continues to lock in power prices through forward contracts in the LFG business in line with our hedging strategy. As at 1 August 2014 approximately 13% of our total expected LFG Summer 14 output was contracted at fixed prices under the NFFO regime, 80% contracted at fixed prices under the RO regime and an additional 7% contracted under the RO regime with prices yet to fix. The average price achieved for the power only element of RO fixed price sales was £47.83/MWh for Summer 14. For Winter 14 approximately 8% of our expected LFG output was contracted at fixed prices under the NFFO regime, 67% contracted at fixed prices under the RO regime, 25% contracted under the RO regime with prices yet to fix. The average price achieved for the power only element of RO fixed price sales was £52.81/MWh for Winter 14. Summer 14 and Winter 14 correspond with our financial year ending March 31, 2015.

The onshore wind and hydro businesses continue to operate under long term PPAs with power prices set predominantly at fixed discounts on a day-ahead basis for onshore wind and fixed prices for hydro.

Outlook

We are confident of delivering a good LFG performance for the financial year supported by predictable generation and the continued migration of NFFO to RO contracts. Our onshore wind business has continued to be affected by lower wind speeds and softer day-ahead prices. Our efficient and young wind fleet continues to maintain high levels of availability and is well placed to benefit from recovering wind speeds when they occur.



An analyst conference call will be held today, Thursday 7thAugust at 08:00 (GMT).

Dial in details for the call are: +44 (0) 207 192 8000 Participant code 73465445

Response to Scottish Referendum Result

Infinis notes the result of yesterday's Scottish Referendum. This outcome preserves the status quo of an integrated UK energy market and the UK-wide applicability of the RO-legislative framework in support of continued investment in renewable energy. As previously announced in our Interim Management Statement of 7 August 2014, we continue to make good progress with both the A'Chruach and Galawhistle projects, with the former remaining on track to complete contract and project finance facilities in the coming weeks. A further announcement will be made in due course.

Infinis Energy plc is pleased to announce that the date of its Interim Results for the period ended 30 September 2014 has been brought forward from 28 November 2014 to 13 November 2014.

Progress on A'Chruach Wind Farm Construction


Infinis Energy plc (Infinis or the Group), the UK's leading independent generator of renewable power, is pleased to announce it has signed a six year £52 million project financing facility to fund the construction and operation of the A'Chruach Wind Farm in Scotland.

The facilities have been arranged with the Royal Bank of Scotland and National Australia Bank to fund the construction and operation of the A'Chruach Wind Farm which will have an installed capacity of 43MW. The wind farm is located in Argyle and Bute, Scotland and is expected to be operational by 31 March 2016 and be accredited under the Renewable Obligation scheme.

The company also confirms that it has entered into binding agreements with Senvion SE who will supply the turbines and provide ongoing turbine maintenance, RJ McLeod for the balance of plant work and AXPO Trading AG, the PPA offtaker.

Eric Machiels, Chief Executive of Infinis, said:

"We are delighted to announce today that we have closed the £52 million project financing facility and confirm that construction is moving ahead on A'Chruach. This is a key milestone as we continue to deliver on our growth aspirations that we committed to at the time of the IPO and will increase the scale of our operating wind portfolio."

Some large trades the last 2 days with no obvious effect on the price - can only assume there's been a bit of broker/fund swapping.

Barclays Capital Overweight 222.10 216.10 - 275.00 Initiates/Starts

Interim Results

Highlights
· Revenue of £105.3 million driven by a strong operational performance in our LFG business and an increase in the average selling price (ASP) across the Group, partially offsetting lower wind speeds;
· EBITDA before operating exceptional items¹ of £59.1 million, a fall of £4.8 million, principally driven by below average UK wind speeds;
· Strong balance sheet position with leverage at 3.8 times and cash balances of £77.2 million (as at 31 March 2014: 3.7 times and £81.1 million);
· Delivery of our growth plans with new funding facilities of £52 million in place for the construction of A'Chruach wind farm (43MW) and binding agreements signed to supply turbines, balance of plant services and a 15 year power purchase agreement;
· Work on site has commenced and A'Chruach is expected to be in operation by 31 March 2016;
· Procurement processes have commenced in support of the development and construction of Galawhistle wind farm (up to 55 MW);
· Interim dividend of 6.1p / share (equivalent to £18.3 million).

Outlook

· Whilst wind speeds trended below average for the six months to 30 September 2014 compared to the comparative period, we are starting to see more usual weather patterns occur in the United Kingdom;
· Our contracted position for Winter 14 protects our LFG business from power prices falling from current levels. We have continued to contract power prices forward into next financial year in line with our contracting strategy;
· We continue to believe that the medium term fundamentals for Infinis remain strong. The most recent instances of plant shutdowns in the UK only serve to highlight the risks of tightening reserve margins and the impact that may have in supporting power prices going forward;
· We expect to declare a dividend in respect of our full year results in accordance with our stated dividend policy of £55 million per annum increasing at least in line with inflation.

Barclays Capital Overweight 225.75 275.00 275.00 Reiterates

Deutsche Bank Hold 225.75 230.00 230.00 Reiterates

Ouch - ANNOUNCEMENT BY TERRA FIRMA INVESTMENTS

Adage Capital Partners @1.562%

MFS Investment Management @1.98%

Interim Management Statement

Preliminary results year ended 31 March 2015

Financial and operating highlights

· Revenue of £236.0 million, 1.0% lower than the prior year
Ø LFG revenue and gross profit were 5% higher than last year;
Ø Lower contribution from our Wind business due to lower wind speeds;
Ø Weaker wholesale power prices for assets priced on a day-ahead basis;

· EBITDA before operating exceptional items of £142.8 million was 3.8% lower than the prior year;
· Strategic divestment of our non-core Hydro business for £20.5 million in February 2015, the proceeds of which will be reinvested in our onshore wind pipeline;
· Net debt reduced to £534.7 million and leverage was flat year on year at 3.7x;
· Final dividend declared of 12.2 pence per share, bringing the total dividend for the year to 18.3 pence per share.


Outlook

· Our landfill gas and wind businesses are performing in line with expectations. Due to our contracted position, combined with 50% of expected revenues increasing in line with inflation, we have good visibility of cash generation for the coming year. The increase in the carbon price floor to £18 per tonne of CO2 on 1 April 2015 and the ongoing tightness of the reserve margin during the Winter season are supportive of wholesale power prices for Summer and Winter 2015;
· Our onshore wind capacity growth plans are on track with A'Chruach (43 MW) in full construction. Pre-construction work has begun at Galawhistle (66 MW) with financial close expected shortly. Sisters (8MW) is at advanced stages of contract negotiation. Our IPO commitment to increase operational wind capacity by 130 to 150 MW by March 2017 remains unchanged;
· We have a strong operational platform and a track record of delivery which we believe will allow us to take advantage of opportunities for further growth in the clean and affordable energy space in the future.

more....

Still a bit of an uncertain industry skinny, though as you say the yield is pretty good.
The sentence " Lower contribution from our Wind business due to lower wind speeds.." is a bit bizarre though. Surely it goes without saying that the amount generated is always going to fluctuate depending on the wind???

Yes, its not without controversy and I bought at float - so am sitting on a paper loss - at least now the increased yield may attract some attention.

Do you follow TATE?

I follow TATE in as much as the divi interests me, but I don't currently hold and it has been a serial disappointer over the last year or so.

The final dividend of 19.8 gives an interim yield @3.45% @577p - although I see the price has recovered since I did the calc earlier!

Quite a daily candle - now touching the 200ma.

Earlier end to subsidies for new UK onshore wind farms

Infinis acquires 18.5MW wind farm project

Infinis Energy plc ("Infinis" or the "Company") is pleased to announce that it has acquired an 18.5MW consented onshore wind farm project from Peel Group.

The wind farm is sited on former surface mining land in Northumberland and neighbours the 8MW consented Sisters Wind Farm project developed by Infinis. Both projects are at an advanced stage of pre-construction and will enable Infinis to secure grid connection, turbine procurement and further ongoing operational synergies. Infinis anticipates funding both projects with project finance whilst the consideration will be paid from available funds. Grid energisation for both projects is expected in June 2016.

Both projects are fully consented, with a signed connection agreement in place and have entered into their leases. Consequently, both will qualify for the RO, complying with the grace period conditions announced last week by the Government applicable to new projects which become operational after 31 March 2016. Construction works on both projects are scheduled to commence in July.

Eric Machiels, Infinis CEO, said: "Today's announcement represents a further milestone in the Infinis growth strategy announced at the time of our IPO. In conjunction with the A'Chruach (43MW) and Galawhistle (66MW) construction projects, Infinis has made significant progress with its growth plans and will be comfortably within the 130-150MW IPO target for additional RO-accredited onshore wind generating capacity by March 2017".

Ex-divi 9th July (12.2p)