Industrial customer losses hit King Country Energy

Wednesday 13th November 2013

Electricity sector bit-player King Country Energy had a less buoyant first half than for the same period last year, with underlying earnings falling 5.8 percent after losing three "large industrial customers" and receiving lower average prices from the wholesale electricity spot market.

Reported earnings before interest, tax, depreciation, amortisation and fair value movements on

financial instruments (EBITDAF) were $7.8 million for the period, down 5.8 percent, in the six months to Sept 30.

Statutory net profit after tax showed a 116 percent gain to $2.3 million, from $1.1 million in the same period a year earlier, reflecting non-cash gains on the fair value of financial instruments and much reduced writedowns of $500,000, compared with $3.5 million in the prior period, said chairman Brian Gurney in a statement.

The niche retail supplier and hydro-electric generator sold 104 Gigawatt hours in the current period, down 18GWh on the prior period, although total electricity generated was 9.1GWh higher than in the same period last year, despite lower wholesale electricity charges.

The current period included a full six months of output from the Mangahao power station, which KCE now wholly owns after buying out Todd family interests last year.

KCE declared a fully imputed, gross interim dividend of 18 cents per share, a 4 cent (29 percent) increase on the same period last year, payable Dec 9.

The company expects second half EBITDAF to be lower, with full year underlying earnings in the range of $12 million to $13 million.

BusinessDesk.co.nz

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