21 February 2020 H1FY20 INTERIM FINANCIAL RESULTS Infigen (ASX: IFN) today released its financial results for the half year ended 31 December 2019. Financial performance: • Renewable Energy Generation sold of 1,071GWh, up 17% vs H1FY19 (‘pcp’) . • Net Revenue of $134.3m, up 13% on pcp. • Contracted Revenue of $116.3m, up 23% on pcp. • Underlying EBITDA of $98.2m, up 11% on pcp. • NPAT of $26.2m, up 24% on pcp. • H1FY20 distribution of 1 cent per security will be paid on 27 March 2020 to holders of record on 31 December 2019. Strategic delivery: • The addition of physical firming plant enabled Infigen to increase electricity contracting, providing higher levels of revenue reliability and continued improvement in quality of earnings. • H1FY20 reflected the first full reporting period which included Infigen’s ownership of Smithfield OCGT. The asset performed in line with expectations, generating 15GWh, reflecting a 3% capacity factor. Fixed and variable operating costs are also performing in line with the guidance provided to the market at acquisition. • In Q2FY20, Infigen’s SA Battery (25MW / 52MWh) made its first revenue contribution. To date, the asset has performed above expectations. During the islanding of the SA market in February 2020, additional battery revenues broadly offset the economic impact of the curtailed production at the Lake Bonney wind farms due to AEMO constraints. • On 1 January 2020, Infigen’s electricity only Power Purchase Agreement over the 21MW Toora Wind Farm commenced. The diversification of Infigen’s renewable energy portfolio in Victoria supports additional Commercial and I ndustrial customer contracting, in line with Infigen’s Capital Lite growth strategy. Sustainability performance: • As advised at the AGM in November, in October 2019 Infigen recorded its first Lost Time Injury in 27 months. The operator has returned to work. • In H1FY20 Infigen conducted an employee engagement pulse survey. It showed an Employee Net Promoter Score of +55, alongside Job Satisfaction of 83% and Current Motivation of 86%, with 92% participation rate in the survey. • In line with Infigen’s target of achieving carbon neutrality by FY25, and leading Australia to a clean energy future, Infigen will be voluntarily abating 20% of its FY20 carbon emissions at an estimated cost of $0.1m. The cost estimate reflects the fact that more than 9 5% of Infigen’s generation is expected to be from renewable sources. Outlook: • Infigen reiterates its FY20 outlook, as released to the market at the FY19 Full Year Results. • Minor adjustments to the FY20 outlook include an improved electricity sales mix, in particular, a higher contribution from Commercial and Industrial customers, with an equivalent decline in anticipated Merchant revenues. As a result, 81% of Infigen’s expected renewable energy generation and 100% of its expected LGCs are now contracted for FY20. • The capital expenditure outlook for FY20 has been slightly lowered reflecting deferred timing of payments relating the South Australia Gas Turbine (SAGT) relocation. The overall budget ($55m) and relocation timeline remain unchanged. In line with prior disclosures, the SAGT lease is expected to commence in May 2020. • As indicated in the FY19 Full Year Results Presentation and reiterated at the AGM in November 2019, Infigen’s FY20 Net Revenue is expected to be weighted towards H1FY20. Historically, Infigen’s renewable energy generation is materially biased towards the first half of the financial year. In FY20,
two other factors amplify the weighting towards the first half; namely: (1) the first half of FY20 benefited from higher priced CY19 LGC contracts; and (2) a more subdued outlook for wholesale electricity prices in the second half. • In line with prior disclosures, operating cashflow will be weighted towards H2FY20, reflecting cash settlement of LGC sales. I n early February 2020, over 90% of Infigen’s LGC inventory achieved cash settlement in line with contract terms. Infigen’s Managing Director and Chief Executive Officer, Ross Rolfe, AO, said: “ It is pleasing to see predictablility and stability in our financial and operating performance during the first half of FY20. We also continued to make significant progress increasing our contracted position and diversifying our customer base. Going forward we remain focused on maintaining high levels of customer contracting and delivering growth through procuring supply from an incremental 600-700MW of renewable energy capacity. While ongoing policy discontinuity creates an uncertain environment for agreeing Power Purchase Agreements, we remain confident in our ability to secure the 600-700MW of contracted capacity over the next two to three years. We also reiterate that our financial performance is in line with our prior FY20 outlook, including the weighting of financial outcomes to the first half.” Infigen will host a conference call for investors and analysts at 10am today, 21 February 2020. A link to the webcast is available below: https://www.infigenenergy.com/investors/publications/financial-results/fy20-interim-results/ ENDS For further information please contact: Peter Campbell General Manager, Investor Relations Peter.Campbell@infigenenergy.com +61 2 8031 9970 About Infigen Infigen is leading Australia’s transition to a clean energy future . Infigen generates and sources renewable energy, increases the value of intermittent renewables by firming, and provides customers with clean, reliable and competitively priced energy solutions. Infigen generates renewable energy from its owned wind farms in New South Wales (NSW), South Australia (SA) and Western Australia (WA). Infigen also sources renewable energy from third party renewable projects under its ‘ Capital L ite’ strategy. Infigen increases the value of intermittent renewables by firming them from its Smithfield OCGT Facility in Western Sydney, NSW, and its 25MW/52MWh Battery at Lake Bonney, SA. Infigen’s energy retailing licences are held in the National Electricity Market (NEM) regions of Queensland, New South Wales (including the Australian Capital Territory), Victoria and South Australia. Infigen is a proud and active supporter of the communities in which it operates. For further information, please visit: www.infigenenergy.com 2
Half Year FY20 Results 21 February 2020 Image: Lake Bonney Wind Farm and SA Battery
H1FY20 Performance H1FY20 H1FY20 H1FY19 Change % Change % Ren enew ewable ble Ene nergy y ▪ Full period contributions from Bodangora WF and Kiata WF. 1,071 912 +17% Generation ion sold (G sold (GWh) Net Revenue ▪ Higher Renewable Energy Generation and first contributions 134.3 119.2 +13% (A (AUD m) D m) from Smithfield OCGT and SA Battery. Co Contracted Revenue ▪ Firming assets enabled higher levels of customer contracting. 116.3 94.6 +23% (AUD m) (A D m) ▪ Bodangora WF PPA contribution. ▪ Higher Net Revenue, partly offset by higher operating costs. EBITD EBITDA ▪ ‘AASB16 Leases’ adopted in H1FY20, resulting in $2.1m 98.2 88.2 +11% (A (AUD m) D m) positive impact to EBITDA*. NPAT ▪ Reflects strong business performance. 26.2 21.1 +24% (A (AUD m) D m) ▪ Reiterating Outlook from FY19 Results. Out utloo ook ▪ Financial results weighted towards first half. * In H1FY20, Infigen adopted AASB16, resulting in a positive EBITDA impact of $2.1m. Details of the impact of AASB16 on Infig en’ s accounts are contained in Note A2 of the Half Year FY20 2 Financial Report.
Sustainability Priorities We sell green energy to Australian ▪ Renewable energy sales +17% vs H1FY19. commercial and industrial customers ▪ One LTI in October 2019. Our first priority is the safety of our ▪ Lake Bonney 1 WF and Alinta WF are 11 years without LTI. people and our communities ▪ Programme of continuous improvement, focusing on eliminating risks wherever possible. ▪ Employee Net Promoter Score (eNPS) of +55. Our high performance workforce is ▪ Job Satisfaction 83%. engaged ▪ Current Motivation 86%. ▪ Strong culture of commitment to achieving corporate purpose. In October 2019, we hosted the 9 th Annual Run With The Wind event at Woodlawn Wind ▪ We invest in our communities and value Farm with a record 720 participants. their support ▪ Contributed $6.6m to local employment, local procurement, landowner payments and community projects. ▪ Increasing bushfire readiness of our communities via facility improvements. Bushfire Relief Plan ▪ Stimulating bushfire affected economies, including via a staff leave day initiative. ▪ Contributing to reconstruction of Two Thumbs Koala Sanctuary, NSW. ▪ Targeting Net Zero Scope 1 and 2 emissions by FY25. We are targeting carbon neutrality ▪ Offsetting 20% of Scope 1 and 2 emissions in FY20. 3
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