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

 

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news