Alkane Energy rises after revenues jump by a half

4th May 2011 14:57

First quarter revenues at coal mine methane (CMM) firm Alkane Energy soared by 51% in the first quarter as electricity output jumped 54% (year-on-year) to 37GWh.The group said that pricing has also continued to strengthen recently as concerns over the situation in the Middle East and Japan have "influence sentiment in the energy market."Alkane now has 88% of 2011 production forward contracted at an average base load selling price of £49/MWh. "We have also taken the opportunity to forward contract into 2012 with an average price of £55/MWh on approximately 15% of our expected 2012 output," the group said."We set out on the current CMM expansion phase some two years ago when selling prices were falling and investment funding limited due to the financial crisis. We are now seeing the result of our growth strategy as we benefit from increased output and rising market selling prices," said chief executive officer Neil O'Brien.---BC