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Infigen swings to annual profit

AAP logoAAP 29/08/2016

Wind and solar power company Infigen Energy has swung to a full-year profit on the back of higher electricity prices and the sale of its US business.

The company reported net profit of $4.5 million for the year to June 30 compared to a $303.6 million loss a year earlier.

Revenue rose 29.5 per cent to $173.2 million as it benefited from higher merchant electricity prices, particularly in South Australia and better prices for large-scale renewable energy certificates.

Infigen also sold its US wind power and solar development divisions last year for more than $US300 million, and has used the proceeds to pay down debt and invest in its Australian business.

Net debt stood at $594.9 million at June 30, the company said, down from nearly $1 billion earlier during the year.

Infigen operates an installed capacity of about 557 megawatts of renewable energy and holds a pipeline of over 1000 MW of projects with development approval.

Wind and solar projects have become increasingly attractive after the federal government committed to generating 20 per cent of its power from renewables by 2020.

Industry experts estimate Australia will need to build up to 5,000 MW of new renewables projects to achieve the target.

On Monday, Infigen managing director Milers George said the company is well placed for growth in a rejuvenated Australian market.

Infigen expects earnings before interest, tax, depreciation and amortisation (EBITDA) for the 2017 financial year to be about $130 million, up from $120.2 million in 2015/16.

Shares in Infigen, which have nearly quadrupled over the past year, were trading weaker on Monday, closing down 4.5 cents, or 4.8 per cent, at 90 cents.

INFIGEN'S INFO

* Net profit $4.5m v $303.6m loss in 2014/15

* Revenue up 29.5pct to $173.2m

* No final distribution to shareholders

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