Renewable energy firm Montauk posts 27% profit hit
Shares fall 13% after the company reports weak first half financials
Renewable energy firm Montauk reported a double digit profit loss for the first half of its financial year, the company said on Wednesday.
The company’s revenue dropped 8% to $46.4m (R808.7m) in the period while profits fell 27% to $10.8m. It posted total renewable natural gas (RNG) revenue of $37.7m while renewable electric generation (REG) total revenue fell to $9m, the company said in its financial statement for the six months through June.
The energy company, which collects gas and produces electricity at US landfill sites, said the first six months was adversely affected by the failure of one of its two production engines at Montauk’s McCarty RNG facility. Production had been limited until the company started commissioning a replacement engine in April 2020, it said.
The company recognised about $2.9m in insurance proceeds which were related to the engine failure at one of its RNG facilities.
“Of the $2.9m, $2.2m was for business interruption and $800,000 was for property, plant and equipment damage,” it said.
Shares in the company crashed and ended trade on Wednesday 13.11% weaker at R33.
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