With expanding contracts for regional power supply through its subsidiary Kalgoorlie Power Systems, Pacific Energy achieved record earnings for the 2010-11 financial year.
The company released its results today, stating a 44 per cent increase in EBITDA to $18 million and NPAT of $8.4 million – a 78 per cent increase on the previous financial year.
Pacific Energy managing director Adam Boyd said the company’s strong earnings growth was underpinned by the advancement of KPS’ opportunities in Australia and internationally.
Mr Boyd said the company is assessing the opportunities presented through the growth ofAfrica’s mining sector and said the company was “advancing to identify those opportunities compatible with our risk management capabilities.”
On Australian soil though, growth in power station supply will potentially bolster the company’s next financial year results.
“KPS now has a total contracted capacity of 175MW+ across 17 contracted power stations in WA, SA and NT,” Pacific Energy’s announcement said.
The company outlined the new contracted power station capacity projects it had secured, which total 49MW and comprise:
- 20MW Degrussa power station for Sandfire Resources;
- 12MW Garden Well power station for Regis Resources;
- 9MWLakeJohnson power station expansion for Norilsk NickelAustralia;
- 3MW Cosmos power station expansion for Xstrata;
- 3MW Chalice power station for Alacer Gold Corporation; and
- 2MW Dead Bullock Soak power station expansion for Newmont Mining.
Mr Boyd said these projects would help to grow the EBITDA in the coming financial year.
“KPS also signed a landmark contract to retrofit two power stations with a total capacity of 20MW with the KPS waste heat recovery technology. This waste heat recovery deal is also expected to enhance FY12 EBITDA growth,” he said.
“The initial commercialisation of our waste heat recovery technology has been a particularly exciting development delivering an exclusive and significant competitive advantage to KPS over other competitors,” he said, referring to the technology the company is planning to roll out across its assets as a growth strategy.
Mr Boyd spoke with WA Business News about the cancellation of one of its renewable energy projects, the $100 million Perth Bioenergy Project, in the coming edition of WA Business News.
“Pacific Energy will cease activity on the company’s plan to develop a 25MW baseload biomass fuelled renewable energy power station 30km north ofPerth,WA. The project has been shelved due to an inability to negotiate a mutually acceptable price for the renewable energy to be generated by the project with the WA State Government owned electricity retailer, Synergy,” the announcement said.
“We were also unable to secure a commitment from the WA Government to consider the direct payments and cost savings of the Project to the non-Synergy WA State-owned corporations participating in the project nor the cost saving benefits of the supply of “base load” renewable energy to be generated relative to the capacity procurement and intermittency related costs of wind generated renewable energy.” (see the 18/8 edition of WA Business News for more detail).
Full statement below:
Power generation company, Pacific Energy Limited (Pacific Energy), today announced record earnings from its Kalgoorlie Power Systems (KPS) business during the twelve months to30 June 2011which delivered a 44 per cent increase in Pacific Energy’s EBITDA to $18.0M.
The company also announced an increase in Adjusted NPAT2 to $8.4M, a 78 per cent increase on the result achieved during the prior twelve-month period.
Managing Director Comment
Pacific Energy’s Managing Director, Mr Adam Boyd said: “Pacific Energy’s strong earnings growth was underpinned by the continued successful expansion of the KPS business. KPS continues to deliver industry benchmark cost effective power supply solutions to the nation’s burgeoning mining and resources sector.
“During the period, KPS maintained its exceptional power station availability, reliability and fuel efficiency credentials and advanced a number of new opportunities both inAustraliaand abroad.
“The initial commercialisation of our waste heat recovery technology has been a particularly exciting development delivering an exclusive and significant competitive advantage to KPS over other competitors.
KPS now has a total contracted capacity of 175MW+ across 17 contracted powerstations in WA, SA and NT. The Company has secured 49MW of new contracted power station capacity since the commencement of FY11 comprising:
- 20MW Degrussa power station for Sandfire Resources;
- 12MW Garden Well power station for Regis Resources;
- 9MWLakeJohnson power station expansion for Norilsk NickelAustralia;
- 3MW Cosmos power station expansion for Xstrata;
- 3MW Chalice power station for Alacer Gold Corporation; and
- 2MW Dead Bullock Soak power station expansion for Newmont Mining.
“Based on the agreed client electricity supply commencement dates, all of the above power stations will make a significant contribution to FY12 EBITDA growth,” Mr Boyd said.
“KPS also signed a landmark contract to retrofit two power stations with a total capacity of 20MW with the KPS waste heat recovery technology. This waste heat recovery deal is also expected to enhance FY12 EBITDA growth.
“Two new power stations and two power station expansions were commissioned during the twelve months to30 June 2011. The two new power stations – the 8MW Moolart Well gold project power station for Regis and the 3.5MW Mt Weld rare earths power station for Lynas Corporation were commissioned in September 2010 and June 2011 respectively.
“The two power station expansions – the9MWLakeJohnson power station expansion for Norilsk Nickel and 3MW Cosmos power station for Xstrata were both commissioned in June 2011. This aggregated 23.5MW of capacity expansion is expected to make a full twelve month contribution in FY12.
Growth Focus & Outlook
“During the period, the Company’s business development activities continued to focus on securing arrangements to supply electricity to hard rock mining projects inAustralia, and, increasingly,Africa. There continues to be a number of exciting project opportunities for KPS to provide its electricity supply solutions over the coming twelve months in both continents.
“Strong growth inAfrica’s resources sector will materially benefit from the delivery of reliable, cost effective power supply solutions. This presents an exciting opportunity for Pacific Energy – one we have been assiduously advancing to identify those opportunities compatible with our risk management capabilities.
“In addition to our endeavours to improve the fuel efficiency of the KPS electricity supply solutions through waste heat recovery and other fuel efficiency initiatives we are also working with gas supply partners to facilitate a reduced cost of fuel and carbon emission solution for our clients and to improve the gross margin performance of the KPS business by exploiting our proprietary Dual Fuel conversion technology.
“During the period, Pacific Energy successfully divested its Mt Hope industrial property located inRockaway Township,New Jersey,USAfor US$3.4M. This improved Pacific Energy’s net cash position by approximately US$3.0M, net of associated costs.
“Pacific Energy will cease activity on the company’s plan to develop a 25MW baseload biomass fuelled renewable energy power station 30km north ofPerth,WA. The project has been shelved due to an inability to negotiate a mutually acceptable price for the renewable energy to be generated by the project with the WA State Government owned electricity retailer, Synergy.
“We were also unable to secure a commitment from the WA Government to consider the direct payments and cost savings of the Project to the non-Synergy WA State-owned corporations participating in the project nor the cost saving benefits of the supply of “base load” renewable energy to be generated relative to the capacity procurement and intermittency related costs of wind generated renewable energy.”
Simplified capital structure
“The successful issue of 127.3M new Pacific Energy shares in exchange for the cancellation of the $35.0M Exchangeable Bonds issued at the time of the KPS acquisition has expanded the Company’s equity capital base, and materially simplified the Company’s capital structure.
Investor support for the simplification of the Company’s capital structure was confirmed by the completion of a $3.8M placement to institutional investors at the time of the cancellation of the Exchangeable Bonds.
“The Company also reached the KPS acquisition “earn out” arrangement sunset date in the period. The total deferred consideration payable to interests associated with the Company’s largest shareholder and KPS founder, Mr Ken Hall comprises $5.0M and the issue of 20.0M Pacific Energy ordinary shares. To date, $3.8M cash and 15.2M Pacific Energy ordinary shares have been issued to interests associated with KPS founder, Mr Ken Hall.
The remaining $1.2M cash will be paid and 4.8M Pacific Energy ordinary shares issued on or around September 2011.
With expanding contracts for regional power supply through its subsidiary Kalgoorlie Power Systems, power generation company Pacific Energy recorded record earnings for the 2010-11 financial year.
The company released its results today, stating a 44 per cent increase in EBITDA to $18 million and NPAT of $8.4 million – a 78 per cent increase on the previous financial year.
Pacific Energy managing director Adam Boyd said the company’s strong earnings growth was underpinned by the advancement of KPS’ opportunities in Australia and internationally.
Mr Boyd said the company is assessing the opportunities presented through the growth of Africa’s mining sector and said the company was “advancing to identify those opportunities compatible with our risk management capabilities.”
On Australian soil though, growth in power station supply will potentially bolster the company’s next financial year results.
“KPS now has a total contracted capacity of 175MW+ across 17 contracted power stations in WA, SA and NT,” Pacific Energy’s announcement said.
The company outlined the new contracted power station capacity projects it had secured, which total 49MW and comprise:
- 20MW Degrussa power station for Sandfire Resources;
- 12MW Garden Well power station for Regis Resources;
- 9MWLake Johnson power station expansion for Norilsk Nickel Australia;
- 3MW Cosmos power station expansion for Xstrata;
- 3MW Chalice power station for Alacer Gold Corporation; and
- 2MW Dead Bullock Soak power station expansion for Newmont Mining.
Mr Boyd said these projects would help to grow the EBITDA in the coming financial year.
“KPS also signed a landmark contract to retrofit two power stations with a total capacity of 20MW with the KPS waste heat recovery technology. This waste heat recovery deal is also expected to enhance FY12 EBITDA growth,” he said.
“The initial commercialisation of our waste heat recovery technology has been a particularly exciting development delivering an exclusive and significant competitive advantage to KPS over other competitors,” he said, referring to the technology the company is planning to roll out across its assets as a growth strategy.
Mr Boyd spoke with WA Business News about the cancellation of one of its renewable energy projects, the $100 million Perth Bioenergy Project, in the coming edition of WA Business News.
“Pacific Energy will cease activity on the company’s plan to develop a 25MW baseload biomass fuelled renewable energy power station 30km north of Perth, WA. The project has been shelved due to an inability to negotiate a mutually acceptable price for the renewable energy to be generated by the project with the WA State Government owned electricity retailer, Synergy,” the announcement said.
“We were also unable to secure a commitment from the WA Government to consider the direct payments and cost savings of the Project to the non-Synergy WA State-owned corporations participating in the project nor the cost saving benefits of the supply of “base load” renewable energy to be generated relative to the capacity procurement and intermittency related costs of wind generated renewable energy.” (see the 18/8 edition of WA Business News for more detail).
Full statement below:
Power generation company, Pacific Energy Limited (Pacific Energy), today announced record earnings from its Kalgoorlie Power Systems (KPS) business during the twelve months to 30 June 2011 which delivered a 44 per cent increase in Pacific Energy’s EBITDA to $18.0M.
The company also announced an increase in Adjusted NPAT2 to $8.4M, a 78 per cent increase on the result achieved during the prior twelve-month period.
Managing Director Comment
Pacific Energy’s Managing Director, Mr Adam Boyd said: “Pacific Energy’s strong earnings growth was underpinned by the continued successful expansion of the KPS business. KPS continues to deliver industry benchmark cost effective power supply solutions to the nation’s burgeoning mining and resources sector.
“During the period, KPS maintained its exceptional power station availability, reliability and fuel efficiency credentials and advanced a number of new opportunities both in Australia and abroad.
“The initial commercialisation of our waste heat recovery technology has been a particularly exciting development delivering an exclusive and significant competitive advantage to KPS over other competitors.
KPS now has a total contracted capacity of 175MW+ across 17 contracted powerstations in WA, SA and NT. The Company has secured 49MW of new contracted power station capacity since the commencement of FY11 comprising:
- 20MW Degrussa power station for Sandfire Resources;
- 12MW Garden Well power station for Regis Resources;
- 9MWLake Johnson power station expansion for Norilsk Nickel Australia;
- 3MW Cosmos power station expansion for Xstrata;
- 3MW Chalice power station for Alacer Gold Corporation; and
- 2MW Dead Bullock Soak power station expansion for Newmont Mining.
“Based on the agreed client electricity supply commencement dates, all of the above power stations will make a significant contribution to FY12 EBITDA growth,” Mr Boyd said.
“KPS also signed a landmark contract to retrofit two power stations with a total capacity of 20MW with the KPS waste heat recovery technology. This waste heat recovery deal is also expected to enhance FY12 EBITDA growth.
“Two new power stations and two power station expansions were commissioned during the twelve months to 30 June 2011. The two new power stations – the 8MW Moolart Well gold project power station for Regis and the 3.5MW Mt Weld rare earths power station for Lynas Corporation were commissioned in September 2010 and June 2011 respectively.
“The two power station expansions – the 9MWLake Johnson power station expansion for Norilsk Nickel and 3MW Cosmos power station for Xstrata were both commissioned in June 2011. This aggregated 23.5MW of capacity expansion is expected to make a full twelve month contribution in FY12.
Growth Focus & Outlook
“During the period, the Company’s business development activities continued to focus on securing arrangements to supply electricity to hard rock mining projects in Australia, and, increasingly, Africa. There continues to be a number of exciting project opportunities for KPS to provide its electricity supply solutions over the coming twelve months in both continents.
“Strong growth in Africa’s resources sector will materially benefit from the delivery of reliable, cost effective power supply solutions. This presents an exciting opportunity for Pacific Energy – one we have been assiduously advancing to identify those opportunities compatible with our risk management capabilities.
“In addition to our endeavours to improve the fuel efficiency of the KPS electricity supply solutions through waste heat recovery and other fuel efficiency initiatives we are also working with gas supply partners to facilitate a reduced cost of fuel and carbon emission solution for our clients and to improve the gross margin performance of the KPS business by exploiting our proprietary Dual Fuel conversion technology.
“During the period, Pacific Energy successfully divested its Mt Hope industrial property located in Rockaway Township, New Jersey, USA for US$3.4M. This improved Pacific Energy’s net cash position by approximately US$3.0M, net of associated costs.
“Pacific Energy will cease activity on the company’s plan to develop a 25MW baseload biomass fuelled renewable energy power station 30km north of Perth, WA. The project has been shelved due to an inability to negotiate a mutually acceptable price for the renewable energy to be generated by the project with the WA State Government owned electricity retailer, Synergy.
“We were also unable to secure a commitment from the WA Government to consider the direct payments and cost savings of the Project to the non-Synergy WA State-owned corporations participating in the project nor the cost saving benefits of the supply of “base load” renewable energy to be generated relative to the capacity procurement and intermittency related costs of wind generated renewable energy.”
Simplified capital structure
“The successful issue of 127.3M new Pacific Energy shares in exchange for the cancellation of the $35.0M Exchangeable Bonds issued at the time of the KPS acquisition has expanded the Company’s equity capital base, and materially simplified the Company’s capital structure.
Investor support for the simplification of the Company’s capital structure was confirmed by the completion of a $3.8M placement to institutional investors at the time of the cancellation of the Exchangeable Bonds.
“The Company also reached the KPS acquisition “earn out” arrangement sunset date in the period. The total deferred consideration payable to interests associated with the Company’s largest shareholder and KPS founder, Mr Ken Hall comprises $5.0M and the issue of 20.0M Pacific Energy ordinary shares. To date, $3.8M cash and 15.2M Pacific Energy ordinary shares have been issued to interests associated with KPS founder, Mr Ken Hall.
The remaining $1.2M cash will be paid and 4.8M Pacific Energy ordinary shares issued on or around September 2011.
