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Tilt Renewables lifts interim profit

NZ NewswireNZ Newswire 6/11/2016 Sophie Boot

Tilt Renewables, which split from Trustpower last month and operates wind and solar generation facilities, lifted first-half profit 1.7 per cent as wind generation improved in both Australia and New Zealand

Reporting alongside Trustpower's first-half results, Tilt said it generated revenue of $94.8 million in the six months to Sept. 30, compared to $88.9m a year earlier.

Earnings before interest, taxation, depreciation, amortisation and change in fair value rose to $66.1 million from $65 million a year earlier, while net profit advanced to $12.1 million from $11.9 million.

Those numbers were calculated as if the demerger of Tilt's assets had taken effect by Sept. 30, and may differ when recalculated at the demerger date, the Tauranga-based company said.

The two companies will produce separate accounts for the financial year ending March 31, 2017, and thereafter. The split took effect on Oct. 31.

Wind generation production rose 9 per cent in the first half to 1,033 gigawatt hours, led by a 13 per cent gain in Australian production to 673 GWh.

Wind generation in New Zealand was slightly better than the prior period, up 2.3 per cent to 360 GWh, with both periods ahead of long-term expectations, it said.

However, generation production costs were higher across both Australia and New Zealand due to one-off turbine repairs, increased costs due to market conditions in South Australia, and fee allocation between operating expenditure and capital expenditure.

The company declared a 3 cents per share unfranked and unimputed dividend, payable on Dec. 9 with a Nov. 25 record date. It noted that the payment of dividends isn't guaranteed and its policy may change over time depending on its growth funding needs.

The shares last traded at $2.10 and have fallen 6.7 per cent since it was listed as a separate entity.

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