Alkane Increases Profit, Output and Selling Price in 2011

UK coal mine methane-focused Alkane Energy has announced that it has increased profit, generating output and selling price for the year ending 31 December 2011, as part of the release of its unaudited preliminary results for that year.

The results show an increase in profit before tax of 45 per cent to £2 million from £1.4 million, following an increase in revenue of 44 per cent, from £6.6 million to £9.5 million.

2011 was a positive year for acquisitions for Alkane Energy, with the acquisition of Seven Star Natural Gas Limited in May 2011, to be followed this year by Greenpark Energy. The acquisition of Seven Star feeds into an increase in assets for the company of 17 per cent, up to £20.9 million.

During the year, the company also increased its operational output, with generating output up 17 per cent to 140 GWh and installed capacity of 27MW for CMM (coal mine methane) and 8MW for power response as of the end of year. The company expects to increase CMM capacity 4MW at the end of this quarter, with the entering of build phase two of two coal mine methane projects.

CEO of Alkane Neil O'Brien said the year marked a "transformational period" for the company, enabling it to grow.

"I am delighted to report on what has been a transformational period for the group," he said. "By executing our stated strategy of remaining focused on our core coal mine methane business whilst leveraging our skills into new, related business streams, Alkane has become the leader in the UK CMM market and one of the largest independent power response providers.  

"Our strong organic performance, combined with our recent acquisitions, has given Alkane a scale where it is ideally positioned to exploit growth opportunities in the UK power industry where 25 per cent of capacity will be decommissioned in the next decade."