King Country Energy Announces Interim Result

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Friday, 11 November 2011 King Country Energy Announces Interim Result

King Country Energy today announced its interim result for the six months ended 30 September 2011.

Consolidated earnings before tax were $4.2 million for the period, an increase of 56% on the prior period comparative.

Reported earnings before interest, tax, depreciation, amortisation and fair value movements on financial instruments (EBITDAF) was $5.7 million for the period, an increase of 24% on the prior period comparative, and ordinary net profit after tax (NPAT) attributable to shareholders was $2.9 million.

Net operating cash flow recorded for the six months ended 30 September 2011 was $5.0 million. Chairman Brian Gurney said the business continued to perform solidly, through a period of variable hydrology and wholesale electricity prices.

“This year we have seen generation output consistent with expectations despite fluctuating inflows and volatility in wholesale electricity spot prices, as the team focus on optimising storage and spot price peak opportunities. “We continue to utilise the hedge market to reduce our exposure to fluctuations in wholesale electricity prices and recent progress with market reforms has added to the transparency of this market,” continued Mr Gurney.

King Country Energy’s retail sales volume for the first six months of the year was 117 GWh, a decrease on the prior period comparative, due to the loss of several low margin, large industrial customers following the margin focused retail review completed last year.

King Country Energy Chief Executive Rob Foster explained the company remains dedicated to a strong customer care ethos, whilst managing its electricity margins and strengthening its position as a strong community based energy retailer.

“King Country Energy continues to support community initiatives that benefit children and families throughout the region through our current sponsorship arrangements and we are very pleased with our Netball Waikato sponsorship.” outlined Mr Foster.

King Country Energy has declared an unimputed, interim cash dividend of 12 cents per share. The dividend will have a record date of 28 November 2011 and a payment date of 2 December 2011.

Mr Gurney said, “The Board is enthusiastic about the second half of the year. We continue to actively seek strategic opportunities to reduce our reliance on the hedge market and grow the company.”

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