Higher prices for Alkane Energy

By David Blackwell
Published: September 18 2008 03:00

Alkane Energy, which generates electricity from the methane that seeps from old coal mines, said its prospects were encouraging after signing forward contracts at "substantially higher prices".
The latest contracts are at between £73 and £81 per megawatt hour, compared with the average in the first half of £46 per megawatt hour.
Pre-tax profits for the six months to June 30 rose from £337,000 to £543,000 on revenues up from £2.4m to £2.6m. The company said it had installed a further 2.9 megawatts of generating capacity, taking the total installed capacity to 20 megawatts. It had generated a record 43,000 megawatt hours in the half and sold 5m cubic metres of coal mine methane.
Earnings per share rose from 0.34 to 0.57p, and there is no dividend. The shares, which fell to a 12-month low of 15p earlier this year, closed up ½p at 19p.
David Blackwell
Copyright The Financial Times Limited 2008