Viridor’s parent group has said its EfW plans make it “well positioned for the future” and efficiency measures applied to its recycling operations are “yielding financial benefits”.
These comments were made in a pre-close trading statement from the Pennon Group. It also reported that across landfill, volumes are declining as expected but that maximizing landfill gas capture rates has continued to “contribute strongly against a backdrop of declining yields”.
The statement reported that Viridor’s EfW facilities are “contributing significantly to EBITDA” and are on track to contribute £100m to 2016-17 EBITDA.
However, a “modest impact” on Viridor’s landfill gas capture and EfW earnings was noted as a result of the Government’s no-notice change to remove the climate change levy exemption for renewables, leading to the end of Levy Exemption Certificates (LECs).
Viridor has seven operational EfW sites and is concentrating on optimising performance across these facilities. This includes the five plants brought on stream in 2014-15.
The waste management firm is now also focusing on completion of three further EfW plants – Peterborough, Glasgow and Dunbar. Peterborough is in commissioning and is due to come on stream during the second half of this financial year.
Glasgow will follow and be brought on stream in 2016-17 while Dunbar is due in the second half of 2017-18. Meanwhile construction of a further EfW plant – at Beddington in South London – has begun.
Across recycling, Viridor has established a two-year focus on input, throughput, output optimisation measures to boost performance and efficiency.
- Shanks Group pre-closing statement reported that its municipal division has “made good progress” on the new Barnsley, Doncaster & Rotherham contract but a bankruptcy at Wakefield has led to an “unavoidable delay” of our months to full service commencement of that project. It warned that this will have an impact on the second half of trading profit in addition to liquidated damages and associated costs, estimated to be around £5m.