Stobart increases volume of biomass fuel supplied

By Erin Voegele | May 30, 2019

U.K.-based Stobart Group Ltd. released fiscal year 2018 financial results on May 29, reporting a significant increase in the volume of biomass fuel it supplied last year. The company said the increase is a result of more power plants reaching full contractual operational volumes.

During fiscal year 2018, which ended Feb. 28, 2019, Stobart Energy division supplied 1.3 million metric tons of biomass fuel, up 51 percent from the 900,000 metric tons the company supplied the previous fiscal year.

The company reported that 97 percent of the renewable energy plants that Stobart Energy supplies have now started commissioning and 90 percent have reached commercial operations. The company said improved and more consistent plant performance resulted Stobart Energy reaching a year-end rune rate of 1.7 million metric tons of biomass per year. The company said the Mersey Bioenergy and Margam plants are expected to reach commercial operations in the near-term. Port Clarence, however, has yet to start commissioning.

“Stobart Energy is increasingly demonstrating the potential of the business model,” the company said in its annual report. “More of the plants we supply are now operating consistently, and this will relieve the cost pressures associated with maintaining the supply chain. Stobart Energy benefits from high-quality earnings give the long-term nature of its supply contracts and is now positioned to generate significant operating cashflow going forward.”

Stobart Energy reported £65.1 million ($82.08 million) for fiscal year 2018, up 19 percent from the £54.7 million reported for fiscal year 2017. Underlying Energy EBITDA was £19.2 million, up 60 percent from £12.1 million in fiscal year 2017.

Stobart also operates an aviation division. Overall, the company reported £146.9 million in revenue, up 39 percent from fiscal year 2017. Stobart reported a loss of £58.2 million for the year, compared to a loss of £23.9 million reported for fiscal year 2017.