Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

Trustpower raises earnings guidance again

Trustpower raises earnings guidance again, boosting Infratil outlook

By Paul McBeth

Oct. 13 (BusinessDesk) - Trustpower raised annual earnings guidance for a third time this financial year with strong wholesale electricity prices on both sides of the Tasman and increased generation in New Zealand, boosting the outlook for controlling shareholder Infratil.

The Tauranga-based company forecasts earnings before interest, tax, depreciation, amortisation and fair value adjustments to be between $255 million and $270 million in the year ending March 31, 2018, up from a previous forecast of $225 million-to-$245 million. Trustpower's New Zealand generation climbed 16 percent to 729 gigawatt hours in the September quarter from a year earlier, largely due to its North Island hydro-plants, while the average spot price generated more than doubled to $98 per megawatt hours.

"The increased forecast has been driven by the favourable trading conditions in the year as well as a recalibration of the expected Australian generation determined as part of the current strategic review," chief financial officer Kevin Palmer said. "Trustpower now expects its Australian ebitdaf to be in line with FY17."

The electricity generator-retailer has already upgraded earnings guidance twice this year, citing favourable trading conditions and hired Forsyth Barr to look at spinning out its Australian hydro generation assets.

Listed infrastructure investor Infratil holds a controlling stake in Trustpower and today's increased earnings guidance feeds into the shareholder's own accounts. Infratil now sees ebitdaf of between $485 million and $525 million in the year ending March 31, 2018, up from a previous forecast of $460 million-to-$500 million.

Trustpower shares last traded at $5.67 and have gained 20 percent so far this year, while Infratil was at $3.11, up 13 percent this year.

(BusinessDesk)

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.