(MENAFN- ProactiveInvestors) () said it saw record production levels as it entered 2015 after upgrades to capacity at two sites.
The company a UK gas-to-power firm told investors it expects to report power sales close to 200 gigawatt hours for the twelve months to December priced at an average base load price of £52 per megawatt hour.
It warned however that there were a number of operation issues in the latter months of the year which impacted on profit expectations.
Alkane said capacity upgrades at the Wheldale and Shirebrook sites were commissioned two months behind schedule and the made fewer calls upon the group’s back-up power generation than anticipated.
There were 29 calls on the Short Term Operating Reserve (STOR) programme in the final three months of 2014 versus 66 calls in the same period of 2013.
Alkane expects to report adjusted profit before tax of £3.25mln to £3.5mln.
In the current year the company has already contracted a high proportion of its generation and has visibility over 82% of its expected 2015 base load output priced at £52 per megawatt hour.
“We have made a strong start to the new financial year with record production and have secured stable pricing for 2015. We are well placed to increase output in the coming year and are confident of reporting further growth” chief executive Neil O’Brien.
David Brockton analyst at City broker Liberum has maintained his forecasts for current year despite 2014 falling short of expectations.
“The low valuation allied with the group’s continued volume expansion and rising demand for short term power support still provides attraction” he said in a note.
Liberum has a 50p price target which represents more than 100% upside to the current price which is down 7.8% today at 23.4p.
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