Infigen records 41% rise in FY 2017/18 net profit

Australian renewables company Infigen Energy (ASX:IFN) today reported a 41% rise in annual net profit on a 7% increase in net revenue.

The company said the expansion in net profit for the year through June to AUD 45.7 million (USD 33.4m/EUR 28.8m) reflects a one-off income tax benefit, which was offset in part by one-off net finance cost.

Infigen also reported record underlying earnings before interest, tax, depreciation and amortisation (EBITDA) from current operating assets of AUD 149.1 million, up 7% compared to the previous financial year, on the back of increased production, as well as improved electricity prices in New South Wales and maintenance of received electricity price in South Australia, despite an 11% fall in the South Australia wholesale price.

Net revenue increased to AUD 210.1 million, with the company seeing a 4% rise in generation and 6% increase in production sold, to 1,549 GWh and 1,480 GWh, respectively, aided by higher wind resource.

Infigen expects production to increase by up to 14% in the new financial year with the Bodangora wind farm coming online, although it said that El Nino wind patterns are forecast to return in 2018/19, which could slightly reduce production from individual assets. The company further said that commercial & industrial (C&I) electricity users continue to be keen on contracting directly with generators and that it will be able to increase its C&I customer as it expands its capacity, both on balance sheet or through its Capital Lite funding model.

According to the annual report, the company has recently agreed a five-year contract to purchase the electricity of the 31-MW Kiata wind farm in Victoria starting September 1, 2018. This power purchase agreement (PPA) represents the first closing of its Capital Lite strategy and underpins its entry in the Victorian market, the company said.

Infigen further announced that subsequent to its refinancing, in the 2018/19 financial year the board will look into resuming distributions.

(AUD 1 = USD 0.731/EUR 0.630)

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