Zenith Energy Ltd (ASX:ZEN) (LON:ZEN), an independent power producer that listed in May 2017, has reported a net profit after tax of $8.47 million for the 2018 financial year, an increase of 171% on last year.
Net profits exceeded the earnings forecast of $3.52 million and represent an earnings per share of 8.65 cents.
Healthier than anticipated results
Zenith managing director Hamish Moffat said the company was thrilled with its performance since listing just over a year ago.
He said: “The outstanding results are testament to the company’s successful delivery of innovative, reliable and cost-effective power generation solutions for its clients.
“We have a tight knit, long-serving team of talented employees and their capability and commitment to our clients has led to a healthier than anticipated full-year results.”
Revenues for the 2018 financial year totalled $51.43 million, up 64% on the previous year.
EBITDA also saw gains, increasing 85% on the previous year to reach $18.22 million.
New contracts and expanded capacity
The company’s strong performance comes off the back of new contracts and an expanded capacity of power generation.
Zenith’s growing number of contracts has led to it more than doubling its Build-Own-Operate contracted capacity from 88 megawatts at listing to 189 megawatts in August.
There are 12 contracts in place representing 420 megawatts of power generation capacity under control, and a robust pipeline of remote power generation opportunities.
Contracts secured over the last 12 months include: the Tanami Gold Mine for Newmont Mining Corp (NYSE:NEM); the Dalgaranga project for Gascoyne Resources Ltd (ASX:GCY); and the Mt Morgans Gold Project for Dacian Gold Ltd (ASX:DCN)
Exploring opportunities in renewable power
Moffat said: “Since listing on the ASX, we’ve converted more than 95 megawatts of near-term pipeline opportunities.
“Looking ahead, we’ve set ourselves a goal of converting a significant portion of our current 380-megawatt pipeline to contracted capacity as well as explore early opportunities in renewable power, smart-grid and storage.
“We’re looking forward to building on our success and consolidating our positions as one of Australia’s leading independent power producers.”
Upcoming ASX Small and Mid-Cap Conference
Zenith Energy will present at the inaugural ASX Small and Mid-Cap Conference in Sydney on Thursday, September 6.
To attend the conference, please register here.