NZ Windfarms posts $7.6m loss

Thursday 26th August 2010

NZ Windfarms, the listed Manawatu turbine electricity generator, posted a bigger-than-expected loss this year, and has trimmed back its earnings forecast for next year. The shares dropped 4.5% to 22 cents.

The company made a $7.6 million loss in the year ended June 30, more than $7.1 million loss forecast in its April prospectus. Last year it made a net profit of $961,000. Windfarms trimmed its forecast earnings before interest tax depreciation and amortization 16% to $4.5 million for the financial year, though it expects to return to profit.

During the year it completed stage three at the Te Rere Hau wind farm which now stands at 65 turbines, contributing to $4.15 million in electricity sales compared to $0.812 million in 2009.

Windfarms also obtained resource consent to construct another 32 turbines on the Eastern Extension to Te Rere Hau and settled a design and certification dispute with Windflow Technology, the manufacturers of Windfarms’ two-bladed turbines.

“The projected income from electricity sales was not achieved as the wind resource was lower during May and June than the projected long term average resource, and wholesale electricity prices were lower than projected due to above average hydro-lake levels from late April,” chairman Derek Walker said.

During the year the company raised $30.4 million in a capital raising exercise, and also completed a sale of carbon emission units which added just under $600,000 to NZW’s bottom line.

Its total assets have risen to $113.5 million, up from $94.4 million in 2009 and again, no dividend will be paid this year.

Businesswire.co.nz

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