Stobart reports growth of biomass segment in financial results

By Erin Voegele | June 03, 2014

The Stobart Group Ltd. recently reported financial results for the fiscal year ended Feb. 28. The company’s biomass operations increased supplied tonnage by 41 percent during the year, reaching more than 900,000 metric tons.

The company reported that its Biomass Division achieved the consolidation of major long term contacts with Iggesund and Helius during the year. It also signed 15-year fuel supply agreements with biomass plants at Port Talbot and Evermore.

The contract to supply the U.K.-based Port Talbot facility with biomass was announced in September 2013. The contract, signed with project owner Western Bioenergy Ltd., is for approximately 150,000 metric tons of fuel per year. It requires a mix of virgin wood and grade A recycled wood.

The Evermore contract was announced in July 2013. Under that agreement, Stobart will provide more than 115,000 metric tons of recycled wood to the facility on an annual basis. The 15.8 MW plant is under development in the U.K. and is expected to be operational in mid-2015.

“The year ahead will see us consolidate our position within the biomass and renewable energy sectors, making co-investments in targeted developments where we can ensure solid and sustainable returns,” said the company in a statement. “Mindful of the importance of the supply element of our biomass business, we have retained the biomass transport business following the recent transaction. This means that our comprehensive offering of fuel source and supply, matched with premier logistics capability, remains fully intact and we are well placed to increase our rate of growth of supply throughout the year.” The recent transaction noted in the announcement refers to the sale of parts of the company’s transport and distribution division in April. The biomass transport operation, however, were retained and integrated into the company’s biomass fuel supply business.

Stobart’s biomass operations earned £28.1 million ($47.06 million) in revenue last year. Overall, the company achieved revenues of nearly £99.18 million. The company reported EBITDA of £ 22.62 million and a loss of continuing operations before tax of £10.19 million.