Kibo Energy reports positive progress at MED subsidiary
11th Apr 2024 15:57
(Sharecast News) - Kibo Energy updated the market on its subsidiary Mast Energy Developments (MED) on Thursday, reporting the successful completion ahead of schedule of the initial first-phase work programme at its Pyebridge 9MW flexible power generation asset.
The AIM-traded firm said the accomplishment ensured the site was officially back into operation.
MED had fulfilled the requirements of its existing T-1 capacity market contract ahead of schedule, securing annual gross profit margin income of around £0.31m.
Furthermore, the Pyebridge site had secured additional capacity market contracts for future years, ensuring continued revenue streams.
Discussions were ongoing to secure additional contracts in upcoming capacity market auctions, ensuring uninterrupted guaranteed income until 2028.
MED had also completed initial pre-construction work at its 7.5MW Hindlip Lane flexible power generation project, with the certificate of lawful commencement granted.
Additionally, other MED sites, including the 4.5MW Bordesley and the 4.5MW Rochdale, were construction-ready, awaiting capital expenditure funding to start construction.
To address the capex funding requirement, MED was currently engaged in discussions with potential debt and equity funders, including banking institutions, to secure the necessary funding for project development.
"We are pleased to have successfully completed the first phase work programme at Pyebridge, and that the site is now back into operation," said Mast Energy Developments chief executive officer Pieter Krügel.
"We are looking forward to initiating the next second-phase work programme shortly, which when successfully completed will see the site operating and generating income at its full expected efficiency, availability and profitability potential.
"We will update the market with progress in due course."
At 1332 BST, shares in Kibo Energy were up 12.27% at 0.04p.
Reporting by Josh White for Sharecast.com.