LONDON (ShareCast) - Alternative energy provider Alkane Energy revealed a 10% increase in half year pre-tax profit and said it is well placed to make further progress.

The coal mine methane producer said pre-tax profit rose to £718,000 in the 6 months ended 30 June 2011 from £653,000 the same time a year earlier. Revenue increased 63% to £5m, driven by higher CMM output and rising selling prices compared with the same period last year.

EBITDA rose 34% to £1.95m while adjusted profit before tax increased 36% to £0.89m.

Alkane generating output rose 34% to 70GWh. 96% of 2011 expected output contracted at an average selling price of £51/MWh and 54% of 2012 at £57/MWh.

Average pricing was up 14% with positive momentum expected to continue into 2012, the group said.

Chief executive officer Neil O'Brien said, "Our coal mine methane core business continues to grow both in scale and profit. In addition, our core gas to power skills are helping the business successfully develop in related areas. In the UK power generation market where 25% of industry capacity will be retired in the next decade, we are well placed to make further progress."

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CJ

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