Revenues up as IGas starts in Salford

IGAS, the shale gas company that has started exploratory drilling in Salford, saw revenues increase last year.

In the 12 months to the end of September sales were up 8.7% to £36.2m, while pre-tax profits fell from £10.2m to £4.6m.

The company said this reflected earnings from oil price derivatives in the prior year. Earnings before interest, tax, depreciation and amortisation (EBITDA) were static at £17.3m.

IGas, which is also active at Warrington and near Ellesmere Port, has a licence to explore for coal bed methane at Barton, but the site has become a target for campaigners who believe the company’s intention is to frack, or hydraulically fracture, for gas.

This controversial technique has been embraced by the Government which is offering tax breaks to companies like IGas and the other big player Cuadrilla Resources. But campaigners say the process – which involves pumping thousands of gallons of water mixed with chemicals into the earth – can cause air and water pollution.

A report published last month by the Government body Public Health England said the risks to public health from fracking are low as long as operations are properly managed and regulated.

It based its view on the “currently available evidence” but admited there is “little peer reviewed research”. It said emissions from individual wells are low and unlikely to have an impact on air quality but the cumulative impact of a number of wells “may be locally and regionally significant”.

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