Renewable power producer Infigen Energy has posted a sevenfold increase in full-year profit but has cautioned on uncertain wind conditions, volatile power markets and a pullback in momentum of green certificate prices as clouding the outlook for the coming year.
Net profit for the year to June surged to $32.4 million, from $4.5 million a year earlier. Sales climbed 13.5 per cent to $196.7 million on generation that edged up 1 per cent to 1487 gigawatt-hours.
Earnings before interest, tax, depreciation and amortisation jumped 25 per cent to $149.7 million, while underlying Ebitda rose 16 per cent to $139.3 million. The underlying figure slightly beat Infigen’s downgraded guidance in June, which was driven by poor wind conditions in the autumn.
Shares in Infigen were up 2 per cent at 78¢ at 10:23am AEDT.
Infigen said it made “substantial progress” in implementing its strategy in the year, expanding its business and strengthening its participation in the Australian energy market.
After reaching financial close on the Bodangora wind farm in NSW in the June half, Infigen expects to build further new projects and diversify its challenges to market for the sale of electricity and Large-scale Generation Certificates.
“The plan prioritises investment in new projects in regional markets that contain the greatest opportunities for value accretive growth,” Infigen said.
The country’s biggest wind power producer, led by chief executive Ross Rolfe, said the plan also assists it to engage with debt markets over the refinancing of its debt.
Debt was reduced further than expected in the second half, with net debt falling to $402 million, RBC Capital Markets analyst Paul Johnston noted, describing the effort as “a clear positive for Infigen.”
Infigen said it is targeting expansion in NSW and entry into the Victorian and Queensland regions of the National Electricity Market “in the short term”.