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UTILITY WEEK | 3rd - 9Th OcTObEr 2014 | 19 Finance & Investment Stock watch 840 835 830 825 820 815 810 805 United Utilities share price, 23-26 september 23 Sep 24 Sep 25 Sep 26 Sep 840 835 830 825 820 815 810 805 United Utilities share price, 23-29 september 23 Sep 24 Sep 25 Sep 26 Sep 29 Sep United Utilities on 24 September told the stock market it was trading in line with expectations. The water company, which is currently hammering out a deal with Ofwat for its 2015-20 spending plans, said profits for the first half of 2014/15 were on course to match the same period last year. Shares in the company showed a brief recovery on the day but in subsequent trading sessions resumed the downward trend already at play. This week Good Energy profits halve despite growth customer numbers rise dramatically, but indi- vidual demand falls, slashing operating profits Renewable energy supplier Good Energy said its first-half earnings had halved year on year despite a 36 per cent increase in customer numbers. For the period ending 30 June, the company's interim management statement said operating profits halved from £1.4 million to £0.7 million. Although the company saw its gas customer base grow by 82 per cent, and its electricity customer base by 35 per cent, operating profit took a hit from a combina- tion of high investment and reduced customer demand. The company cited investment in customer service improvements, marketing activity and infrastructure to support its ongoing growth, as key areas of focus. Specifically, Good Energy said that in the first half of the year its Hampole windfarm was fully commissioned, on schedule and to budget, with a further two new solar farms energised in Dorset and north Cornwall. In addition, final planning permission was received for a 49.9MW solar park on a disused airfield site in Norfolk at the start of the year, the company said. Sub- sequently, in August, Good Energy agreed terms for the sale of this site to a member of the Trina Solar group. "We remain on track to meet our goal of delivering 50 per cent of electricity from our own renewable assets by 2016," said Good Energy chairman John Maltby. The company added that demand had been hit by unusually mild weather in the first quarter, which was consistent with the downturn experienced by the wider market. JA GaS Ineos offers £2.5bn shale payout Chemicals giant Ineos is taking a majority stake in Dart Energy's Scottish shale oil and gas licence block, while offering up to £2.5 billion to local communities in a bid to encourage shale develop- ment in the UK. Ineos said in a statement over the weekend that it planned to give those living directly above the licence 4 per cent of its shale gas revenues, while those living in the wider community would receive 2 per cent. It will adopt this approach across any of its UK sites, which could lead to community benefits of up to £2.5 billion, the company said. The burgeoning shale industry has already committed to offering local communities a 1 per cent stake in project rev- enues, but Ineos said it planned to offer a more lucrative deal to reflect the community benefits seen in the US. ELEcTrIcITY Decc delays first CfD allocation round The first contracts for difference (CfD) allocation round has been delayed by the Department of Energy and Climate Change. In a notice published by Decc on Friday, it said the end date for the first CfD allocation round had also been pushed back, from 31 March 2015 until 15 April 2015. In addition, the start of the first allocation round has been pushed back by two days, to 16 October 2014, and the appli- cation closing date has been delayed by three days until 30 October 2014. Decc said the delay was caused by "changes to the date on which the Budget Notice is due to be issued". ELEcTrIcITY Abu Dhabi's Masdar takes 35% stake in Dudgeon windfarm Abu Dhabi-owned green energy company Masdar is set to buy a 35 per cent stake in the 400MW Dudgeon offshore windfarm for £525 million. It will take its share of the Norfolk project from Statoil's 70 per cent holding. Joint devel- oper Statkra will retain its 30 per cent of the project. In a statement, energy secretary Ed Davey said the investment was a "strong endorsement" of the UK as an energy investment centre, add- ing that £7 billion a year had been invested in UK renewables since 2010. "We expect to see up to £50 billion more between now and 2020," Davey added. Masdar already has a 20 per cent stake in the 630MW London Array project. Investment in new projects also took its toll