Viridor’s parent company has revealed that the waste and recycling business has found success in “new Asian markets”, partially mitigating impacts of China’s changing quality requirements.
The news of Viridor’s recycling team’s success in tracking down new Asian outlets for waste paper and plastics comes in the company’s half year results for H1 2017/18, published today (29 November) by Viridor’s parent company – Pennon Group.
Viridor points to success from “new Asian markets” in Pennon Group’s half year results
Despite the development in the new markets, which the company describes as a recycling ‘self-help’ measure, Viridor remains ‘cautious’ about recycling pricing in the second half (H2) of 2017/18 (October to March).
Revenue
In total, the Pennon Group’s revenue increased by 5.6%, to £723.9m in the first half of 2017/18 (£685.5m in H1 2016/17).
And, the company’s operating profit increased by 5.5%, to £162.4m in H1 2017/18, compared to £153.9m for the same period in 2016/17.
ERFs
According to the report, Viridor’s growth has been driven by ‘strong performance’ from energy recovery facilities (ERFs). The company said its ERFs are performing well, and “average availability continues to be greater than 90% with operational ERFs delivering in excess of base case expectations”.
However, this excludes the company’s Bolton ERF which suffered a fire earlier this year (see letsrecycle.com story).
Pennon Group also reports that good progress is being made to bring Viridor’s remaining four energy recovery facilities on stream, with three commissioning in 2017/18 and the final facility under construction.
The company’s Glasgow’s Recycling and Renewable Energy Centre is in the final stages of commissioning. Its Beddington and Dunbar facilities are also in the commissioning stage.
An artist’s impression of the Avonmouth EfW, which Viridor aims to bring online by 2020
One ERF in Avonmouth is in the early stages of construction – the company reports that the facility is “progressing well with work on the foundations underway.”
Performance
Commenting on the results, Chris Loughlin, Pennon chief executive, said: “Pennon has delivered robust performance in the first half of 2017/18 across both water and waste activities. Our priority continues to be to provide an outstanding level of service to our customers and communities, while offering a sector-leading dividend policy for our shareholders.”
“The expansion of Viridor’s energy recovery facility portfolio will support Pennon’s earnings growth to 2020 and beyond.”
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Source: letsrecycle.com Waste Managment
