A continuing low oil price clouds the prospects for renewable energy group Infinis, its chairman Ian Marchant has said.
As he unveiled net underlying earnings of £142.8million, a 3.8per cent fall on last year, and revenue 1per cent lower at £236m, Mr Marchant said the company's contracting strategy had mitigated the fall in wholesale power prices. "However, should oil prices remain at current levels for a number of years then clearly this will have an adverse impact on the performance of the company in future years."
Mr Marchant, who delivered a stinging critique of current UK energy policy in a speech in Glasgow just before the election, said that after the manifesto promises "it is the substance now that needs to be dealt with by the new Conservative government". The Tories had promised to push for a strong global climate deal, which pointed to the need for a long-term plan to reduce the carbon emissions from electricity generation, while the UK had legal obligations on levels of renewable energy in 2020. "We hope that the new government will focus on ensuring there is greater regulatory certainty, rationality of debate and delivery of affordable renewable electricity in the years up to 2020 and beyond."
He said the key measure of profit, earnings before interest, tax, depreciation, amortisation, and operational exceptional items, "demonstrates the resilience of our business model". The group's net debt reduced by £13m to £534m, or 3.7 times net earnings. The first full dividend is set at 18.3p, after 6.6p in the company's first year.
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