Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

Horizon cuts profit forecast on derivative losses

Horizon Energy cuts profit forecast on derivative losses

Feb. 2 – Horizon Energy Distribution Ltd., which operates a power network in the eastern Bay of Plenty, cut its profit forecast by about 25% because of losses on interest rate derivatives.

The company expects to report a full-year profit of about NZ$4.4 million, it said in a statement. The estimate comes five months after Horizon raised its forecast to between NZ$5.7 million and NZ$6 million, citing the higher-than-expected settlement of a dispute with a supplier.

“This lower forecast arises from the accounting recognition of mark to market losses on the Company's interest rate derivatives following recent reductions in wholesale interest rates,” the company said.

Under New Zealand’s version of International Financial Reporting Standards, Horizon was obliged to immediately recognize changes in the fair value of derivatives in its P&L statement. The non-cash expense won’t erode Horizon’s final dividend payment and the company is well-placed to benefit from lower interest rates, it said.

Horizon is 77% owned by the Eastern Bay Energy Trust, with the balance of its shares trading on the NZX. The shares last traded on Jan. 29 at NZ$3.20 and are down 4% in the past 12 months.

(Businesswire)

© Scoop Media

 
 
 
Top Scoops Headlines

 


Binoy Kampmark: A Looting Matter: Cambodia’s Stolen Antiquities

Cambodia has often featured in the Western imagination as a place of plunder and pilfering. Temples and artefacts of exquisite beauty have exercised the interest of adventurers and buccaneers who looted with almost kleptocratic tendency. In 1924, the French novelist and future statesman André Malraux, proved himself one of Europe’s greatest adventurers in making off with a ton of sacred stones from Angkor Wat... More>>



Dunne Speaks: Labour Leadership Speculation Premature And Facile
Speculation that the Prime Minister’s leadership of the Labour Party may be at risk because of this week’s adverse poll results is as exaggerated as it is premature and facile. While her popularity has plummeted from the artificially stellar heights of a couple of years ago and is probably set to fall further to what would be a more realistic assessment... More>>




Ian Powell: Colossal ‘Porkies’ And Band-aids Don’t Make A Health Workforce Plan

On 1 August Minister of Health Andrew Little announced what he described as the start of a plan for the beleaguered workforce in Aotearoa New Zealand’s health system: Government’s 5 year late health workforce announcement. In October 2017, when Labour became government with its two coalition parties, it inherited a health workforce crisis from the previous National-led government... More>>


Binoy Kampmark: The Fuss About Monkeypox
The World Health Organization has been one of the easier bodies to abuse. For parochial types, populist moaners and critics of international institutions, the WHO bore the brunt of criticisms from Donald Trump to Jair Bolsonaro. Being a key institution in identifying public health risks, it took time assessing the threat posed by SARS-CoV-2 and its disease, COVID-19... More>>

Dunne Speaks: Time For MPs To Think For Themselves
One of the more frequently quoted statements of the Irish statesman and philosopher, Edmund Burke, was his observation that “Your representative owes you, not his industry only, but his judgement, and he betrays instead of serving you if he sacrifices it to your opinion.”... More>>