Stobart reports revenue growth for biomass division
The Stobart Group Ltd. has released interim financial results for the six months ended Aug. 31, reporting £330.2 million ($533.57 million) in revenue from continuing operations and an underlying operating profit of £20.9 million. For the same period of 2012, the company reported £247.4 million in revenue from continuing operations and £19.7 million in underlying operating profit.
In its financial results, Sobart also noted that profit for the six month period are up from last year in all operating divisions.
"We are on track to deliver value across all of our divisions in line with our strategy. Our market-leading Transport business continues to perform well and our growing air and biomass divisions are beginning to deliver on their potential,” said Andrew Tinkler, CEO of Stobart.
Revenue for the Stobart Biomass division was £11.3 million, with a division profit before tax of £1.6 million. During the same period of 2012, the Stobart reported revenue of £6.6 million for the division, with £800,000 of profit before tax.
Regarding its biomass operations, the company reported biomass tonnages increased to 354,000, up 52 percent from 232,000 tons during the comparable period of 2012, despite some customer plant commission outages. “U.K. operations have been disrupted by customers' plant outages, which are expected to reduce after commissioning issues are resolved. The reduction in UK volumes has led to an increase in export supplies which demonstrates our versatility but has an impact on our margins,” reported the company in its financial release.
According to Stobart, long-term potential for its biomass segment is very positive. The company highlighted the contract it has signed with RWE Npower Renewables for a plant that is expected to be operational later this year, and a contract with Evermore Renewable Energy for a facility that is expected to be operational in 2015. Stobart also noted it has signed framework agreements with Greensphere Capital to supply biomass to plants in which it expects to invest. Stobart estimates the total potential of all four contracts to be 1.25 million tons per year.