Infigen Energy shares have jumped more than 11 per cent after the wind farm operator posted a big rise in half-year profit and agreed to refinance most of its debt.
Profit for the six months to December 31 rose 25.1 per cent to $26.7 million, boosted by higher electricity prices and lower costs.
Revenue edged 2.5 per cent higher to $118.2 million and managing director Ross Rolfe said Infigen had responded well to an evolving energy market.
“We now have a diversified sales portfolio that should deliver greater stability into our revenue streams in line with our five-year targets for a balanced portfolio,” he said.
Infigen has been boosting allocation to commercial and industrial customers through direct energy supply contracts in order to reduce reliance on power purchase agreements.
It operates windfarms across NSW, South Australia and WA, generating 557 megawatts of electricity, with another 113 MW under construction in NSW and plans for entering the Victoria and Queensland markets.
The company on Monday also confirmed it had signed a five-year agreement with Goldman Sachs for a $525 million term debt, replacing its existing global debt facility.
It is seeking another $80 million liquidity facility from banks.
RBC Capital Markets analyst Paul Johnston said, while specific interest costs and other terms are not known, the refinancing is a positive.
“It remains one of the key issues for investors,” he said in a note.
“It should provide Infigen with much greater flexibility to pursue growth and consider paying distributions to shareholders in time.”
The company again decided against paying an interim dividend.
Infigen shares closed up 9.9 per cent at 66.5 cents in a firm Australian market.
INFIGEN PROFIT RISES:
* Net profit $26.7m v $21.4m year ago
* Revenue up 2.5pct to $118.2m
* No interim dividend, unchanged