Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ Windfarms narrows first-half loss

NZ Windfarms narrows first-half loss

By Suze Metherell

Feb 28 (BusinessDesk) - NZ Windfarms, which operates Te Rere Hau windfarm in the Tararua Ranges, narrowed its first-half loss, generating more energy but achieving less revenue than in the same period a year earlier.

The company made a net loss $1.23 million, or 0.43 cents per share, in the six months ended Dec 31 from a loss of $1.26 million, or 0.44 cps, a year earlier, it said in a statement. Revenue from ordinary activities fell 1.9 percent to $3.9 million.

The company lifted generation 7.4 percent to 63,530 megawatts per hour, while electricity revenue fell 9.5 percent to $2.7 million, as prices were impacted by high hydro lake storage levels, more capacity coming online and soft consumer demand.

NZ Windfarms failed to get an early exit from a lease with Powerco, one of New Zealand’s largest electricity and gas distributors, which it hoped would reduce costs and end its $6.5 million bank guarantee with Bank of New Zealand.

The two companies formed an alliance in 2007 for Powerco to build the transmission infrastructure connecting the Te Rere Hau windfarm to TrustPower’s Tararua Ranges substation and lease it back to NZ Windfarms.

“Unfortunately the company has been unable to get agreement on early release from Powerco and has therefore renewed its guarantee with the BNZ to support the lease,” chairman Derek Walker said.

“In the board’s view, it is also prudent to hold some surplus funds on its balance sheet to provide resources which may be required to address any major costs to resolve the resource consent issue, costs that would arise should our warranties become inoperative, our on-going reconditioning programme require further financial support and any other unforeseen issues,” he said.

Surplus funds would be retained rather than paid as a dividend or returned via a share buy back.

The company used $7.23 million of cash in the period, leaving it with cash and equivalents of $2.75 million as at Dec 31. It had an operational cash outflow of $379,000, and had to invest $6.5 million in a BNZ term deposit to continue its guarantee with the bank.

NZ Windfarms said it’s appealing an Environment Court decision which found in favour of Palmerston North City Council over noise complaints from the Te Rere Hau.

It gave no specific guidance for expected full-year profit.

The shares last traded at 6.8 cents, and have fallen 32 percent in the past year.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Our Fresh Water: Monitoring Report Confirms Serious Challenges For Rivers

• nitrogen levels are getting worse at 55 percent and getting better at 28 percent of monitored river sites across New Zealand • phosphorus levels are getting better at 42 percent and getting worse at 25 percent of monitored river sites across New Zealand More>>

ALSO:

Stats: Wind And Geothermal Emerge As Significant Sources Of Energy

Geothermal’s contribution to New Zealand’s total renewable energy generation increased from 11.5 percent in 2007 to 21 percent in 2015.... The value of wind jumped from $238 million (2 percent of total renewable energy generation) in 2007 to $884 million (6 percent) in 2015. More>>

Errors Found: Electricity Authority Dumps Transmission Pricing Modelling

The Electricity Authority is ditching the cost-benefit analysis at the heart of its controversial attempt to find a new way to divide up costs for the national grid after finding an expanding range of serious computational errors in the work by Australian consultancy Oakley Greenwood. More>>

ALSO:

New Record: Migrant Arrivals At 129,500 A Year

Annual net migration has been steadily increasing since 2012. "This was mainly due to the rising number of migrant arrivals to New Zealand," population statistics senior manager Peter Dolan said. "Fewer migrant departures also contributed to the increase in net migration." More>>

ALSO:

Launched: NASA's Super Pressure Balloon Takes Flight From NZ

NASA successfully launched its football-stadium-sized, heavy-lift super pressure balloon (SPB) from Wanaka, New Zealand, at10:50 a.m. Tuesday, April 25 (6:50 p.m. April 24 in U.S. Eastern Time), on a mission designed to run 100 or more days floating at 110,000 feet (33.5 km) about the globe in the southern hemisphere's mid-latitude band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news