INFINIS ENERGY Share Discussion Threads

[jonwig] 10/8/2014 14:33

"New developments are key to future growth" .. so they should be!

Isn't this unique amongst infrastructure companies in having a highly geared balance sheet?*
It looks to me as though Income = Debt interest + dividend. Maybe.

How then to finance new developments?

*The other renewables I hold/have held are BSIF, TRIG, UKW. None has any debt at corporate level.

[bit thick] 10/8/2014 12:10

If you feel (as i do) that this is a good long term income stream, then why not buy more to average down?

New developments are key to future growth. I note that LFG is producing over 4 x the output of the wind farms despite similar installed capacity (hopefully this storm will boost figures!) Gas engines run 24/7 (apart from maintenance).

[salpara111] 07/8/2014 12:38

Well, as a holder from float and as such roughly 20% down I see no point in selling.
The statement was pretty neutral and if it had not been for the rapid recent fall in share price I don't doubt that it would have been off by at least 5% today.
I guess I will just look on this as a long term income stream.

[4seeaproblem] 07/8/2014 08:26

No sales either way at 08.25....

So does that mean market expectations met or is it a mexican stand off between buyers and sellers ?

[topvest] 07/8/2014 08:09

Update sounds OK. Lower recent wind conditions are already well known. Looks like this will change soon with windy weather on the way!

[skinny] 07/8/2014 07:24

Group operating and financial performance

We have delivered a solid operational performance for the Period, driven by our landfill gas ("LFG") business which has partially offset lower wind speeds experienced by our onshore wind business.

We are pleased with our LFG business which continues to perform well. LFG delivered strong output across the portfolio and satisfactory reliability levels. We exported 463 GWh in the three months to 30 June 2014 compared to 476 GWh during the corresponding period in the prior year, a decline of 2.7% which was slightly better than expectations. We have continued to make good progress on NFFO to RO conversions. The proportion of electricity exported under the RO regime for the three months to 30 June 2014 was 84% compared to 74% for the comparative period in 2013. The total average selling price ("ASP")(2) for the June quarter was £89.08/MWh, an increase of £4.24/MWh on the comparative period.

Our onshore wind business exported 104 GWh in the three months to 30 June 2014, all of it under the RO regime. This was approximately 50 GWh lower than the comparative period and was due to low wind speeds experienced across the UK throughout the Period. The availability of our wind farms was 96% for the Period. We noted at the time of our Preliminary Results in June that wholesale power prices had softened due to lower gas prices which was partly due to the mild winter. The wind ASP for the quarter to June 2014 of £88.06/MWh was £5.20/MWh lower than the comparative period of £93.26/MWh and was predominantly due to lower wholesale power prices.

Our hydro business is benefiting from the investments in capital expenditure made in the prior year. We exported 5.3 GWh in the three months to 30 June 2014, 1.7 GWh ahead of the comparative period.

The company will pay its first dividend as a listed company on 28 August 2014 and remains on track to deliver on its dividend commitments.

Onshore wind development activities

We continue to make good progress on the A'Chruach project (43MW) with key turbine procurement and PPA contracts and project finance facilities in the process of being finalised. Pre-construction preparation work for Galawhistle (55MW) continues to be in line with project development plans. Both projects are expected to be built under the RO regime and both projects will only begin construction once the outcome of the Scottish referendum, and its potential effect on energy policy, is known.

We continue to make steady progress on the development pipeline and remain well on track to achieve our target of delivering 130-150MW in the next three years.

Financial position

We continue to maintain a strong financial position. Cash and cash equivalents stood at £99 million as at 30 June 2014 and net debt at the same date was £527 million.

Contracted position

The Group continues to lock in power prices through forward contracts in the LFG business in line with our hedging strategy. As at 1 August 2014 approximately 13% of our total expected LFG Summer 14 output was contracted at fixed prices under the NFFO regime, 80% contracted at fixed prices under the RO regime and an additional 7% contracted under the RO regime with prices yet to fix. The average price achieved for the power only element of RO fixed price sales was £47.83/MWh for Summer 14. For Winter 14 approximately 8% of our expected LFG output was contracted at fixed prices under the NFFO regime, 67% contracted at fixed prices under the RO regime, 25% contracted under the RO regime with prices yet to fix. The average price achieved for the power only element of RO fixed price sales was £52.81/MWh for Winter 14. Summer 14 and Winter 14 correspond with our financial year ending March 31, 2015.

The onshore wind and hydro businesses continue to operate under long term PPAs with power prices set predominantly at fixed discounts on a day-ahead basis for onshore wind and fixed prices for hydro.

Outlook

We are confident of delivering a good LFG performance for the financial year supported by predictable generation and the continued migration of NFFO to RO contracts. Our onshore wind business has continued to be affected by lower wind speeds and softer day-ahead prices. Our efficient and young wind fleet continues to maintain high levels of availability and is well placed to benefit from recovering wind speeds when they occur.



An analyst conference call will be held today, Thursday 7thAugust at 08:00 (GMT).

Dial in details for the call are: [phone] Participant code 73465445

[4seeaproblem] 05/8/2014 09:49

I guess we will find out on Thursday !. It should be interesting...all the IPO costs and consultancy fees should be out of the way and it should offer a clear evaluation of the Business going forward. I bought because it offered a good dividend and I believe Energy will increasingly be a challenge for the UK. INFI should be well positioned to influence, and benefit from, the renewable market.

[salpara111] 05/8/2014 09:39

Either there is some real negative news about to break and I can't imagine what that might be, or the current price is a complete steal.
They have made it clear that they are paying a divi this year which is around 8.5% at the current share price so either the market does not believe that this level of divi is sustainable going forward or the share price should be closer to 350p.
They said in their last statement that their intention is to raise the divi by inflation going forward so they have put their cards on the table and will look pretty stupid if they have to backtrack so soon.
I am happy to hold but not so thrilled that I topped up at 222!

[bit thick] 04/8/2014 17:18

Last time it was down here I bought more at 2.08. Reckon it won't go much below that level (I have been wrong before!). Good long term buy below 2.10

[jbat] 04/8/2014 17:00

Oh FFS - the way this is going, the management statement is going to scythe the share price down to about £1.80. The volatility of this share on tiddly volume is nuts.

[salpara111] 04/8/2014 17:00

You are not seeing the real volume of the trades that are conducted through the "dark pool"

[4seeaproblem] 04/8/2014 10:25

Yep...it never ceases to amaze me how on minimal volume this share plummets. Down nearly 5% on less than 20k shares exchanged.

[jbat] 04/8/2014 09:58

Down like a lead anvil today.

[prokartace] 03/8/2014 09:32

We will have to see what they say in their trading statement on Thursday

[thamestrader] 02/8/2014 00:24

As a long termer, and in no need of a generous divi right now, I wouldn't be too upset if they did exactly as Jbat suggests.

[jbat] 01/8/2014 14:23

Salpara111 - be careful. Whilst the income streams may be guaranteed, the dividend never is, and they could cut it from a theoretical 8% to 4-5% and it would still be attractive. The board might decide to pay down their debt pile instead of paying shareholders a massive dividend. Just a theory, but be careful of relying on any dividend forecast - it might get cut.

[bit thick] 01/8/2014 13:45

Apologies, I did indeed speak too soon - kiss of death!!

[salpara111] 01/8/2014 12:30

Exactly....in a "risk off" market the boring divi players are supposed to do well not badly!
The reason why INFI is struggling now is due to the fact that most of the initial lockups ended after 6 months and there has clearly been big selling by some of the legacy owners, this produces some great opportunities as things will settle out over the next 6 months and the divi here is so high and covered by guaranteed income streams that it simply cannot fall much from the current level.

[jbat] 01/8/2014 12:12

Market looks nasty overall today - concerns over Ukraine, Argentina, Ebola, DOW is at nosebleed levels but what else is new?

[prokartace] 01/8/2014 12:06

This company is only about the divi. Market loses all interest when it goes ex. Am biding my time before re-purchasing to see what both the share price and the market in general are going to do

[enewman36] 01/8/2014 12:01

Wish I had waited 3 days now ffs, got in at 240 thinking the chart looked good then whollop, bloody Midas touch or what ggrrhhhhh!

[salpara111] 01/8/2014 11:33

Bit of a gift, managed to get some more for 222 this morning!
The divi alone makes it a no brainer at this level.

[bit thick] 30/7/2014 16:32

Holding up well considering xd and the rest of the market!