OilVoice - Alkane Energy Announces Interim Results

Alkane Energy Announces Interim Results

Wednesday, September 19, 2007

Alkane Energy plc designs, builds, operates and services methane treatment and electricity generation plants. These plants greatly reduce emissions of damaging greenhouse gases and help in global efforts to slow climate change.

Financial Highlights

• Profit after tax £310,000 (2006 H1: loss after tax £484,000)
• Earnings per share up to 0.34p (2006 H1: loss per share 0.53p)
• Turnover up 29.6% (excluding Pro2) £2,359,000 (2006 H1: £1,820,000)
• Pro2 now an associate company (2006 H1 Alkane turnover incl. Pro2 £8,435,000)
• Cash and cash equivalents £1,446,000 (2006 H1: £843,000)
• Net debt position of £491,000 (30 June 2006: £2,867,000)

Operational Highlights

United Kingdom – Alkane Energy UK Limited
• Turnover in first half £2,359,000 (2006 H1: £1,820,000)
• Record operating profit £513,000 (2006 H1: £76,000)
• 17 MW of power generation and gas supply plants operating
• 39% increase in energy output to 39 million kWh (2006 H1: 28 million kWh)
• Equivalent of 6MW of direct gas sales to customers
• Share of loss of associate Pro2, £34,000

German Associate – Pro2 Anlagentechnik GmbH
• Turnover up to £7,924,000 (2006 H1: £6,696,000)
• 2007 order book at record high
• New international renewable energy markets opening up
• Additional bank finance under negotiation

Dr Cameron Davies, Chief Executive, commenting on the interim results, said:

“Alkane made a record operating profit of £513,000 in the first half of 2007 with the UK power generation and gas sales business performing well. Our existing mine gas plants generated the equivalent of 39 million kWh of electricity in the first half of 2007, considerably higher than the 28 million kWh in the first half of 2006. A full review of the mine gas potential of our petroleum licence portfolio has identified a five year pipeline of generation projects for development. Pro2 also improved its performance and came close to break even in the first six months. Although a number of one off items have held back profits in the first half, the background of robust electricity prices and a strong portfolio performance give us confidence to push ahead with our development plans.”