Infigen Energy Stock Recorded The First Upside Movement Of 2019

When all the energy sector companies spotted positive market trends on higher oil prices, the ASX listed player of clean energy Infigen also made a rebound in today’s trading session. Infigen’s stock price jumped up sharply by 6.818% to end the session on a positive note for the first time in 2019. This outlines the IFN’s last traded stock price of $0.470 on 3 January 2019.

It seems investors have sighted a steady growth in the renewable energy sector that is backed by the strong support of the government. Currently, Infigen’s underlying Earnings Before Interest, Tax, and Amortization (EBITDA) is sitting at $149.1 million with an EBITDA margin of 66.6%.Â

Recently, Infigen Energy (ASX: IFN) announced the financial close of its growth project Cherry Tree Wind Farm on a ‘Capital Lite’ basis with the John Laing Group acquiring 100% ownership of the project. Infigen has sold the development it made at Victoria-based 57.6MW Cherry Tree Wind Farm for $6.5 million and entered into a run-of-plant power purchase agreement (PPA) with John Laing Group. That means as the Cherry Tree Wind Farm will roll out its commercial operations, Infigen will purchase all the green and electricity products that it will manufacture. Moreover, the term for power purchase agreement has been fixed to 15 years.

With this agreement in place, Infigen now has a new valuable source coupled with Kiata Wind Farm products to serve the growing market of Victoria. When operational, Cherry Tree Wind Farm is expected to produce approximately 182 GWh p.a. of electricity from its installed capacity of 57.6MW. The projected annual generation output from the wind farm will equate to powering 37,000 average Victorian households and avoid the emission of 200,000 tonnes of CO2 annually.

However, John Laing Group has now become the owner of Cherry Tree Wind Farm and will fund the construction of the project. It is expected that construction of the Cherry Tree Wind Farm will begin from this quarter, i.e., Q1 2019, and will take an estimated construction period of 17 months. Besides managing the construction process of the wind farm, Infigen has committed to provide asset management services for a term of 8 years during its operational stage.

Infigen’s stock last traded at a price to earnings ratio of 9.170 x with a market capitalization of $420.89 million and shares outstanding are 956 million shares. In the past 12 months, IFN has fallen 36.23% including a plunge of 20.72% witnessed over the past three months.


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