Tilt warns of weaker first quarter earnings as low winds cut production

Friday 30th June 2017

Tilt Renewables, the wind and solar generation facilities which split from Trustpower last year, has warned earnings will be as much as A$12 million lower for 2018 after a weak start to the year.

Lower wind conditions across Tilt's Australian and New Zealand portfolios, particularly in South Australia, mean first quarter production across the group will be 30 percent below expectations. The Auckland-based company expects to generate 317 gigawatt hours (GWh) in the three months to June 30, a 39 percent drop from the first quarter of 2017.

Consequently, earnings before interest, tax, depreciation, amortisation and adjustments for fair value (ebitdaf) for the quarter will miss forecasts by between A$10 million and A$12 million, the company said.

Ebitdaf for the 2017 year was A$124 million, 1 percent lower than in 2016, reflecting the cost of transitioning to a standalone business. The company expected the full impact of that cost to be seen in the current financial year, on top of revenue falling by between A$4 million and A$5 million after pricing changes.

The shares last traded at $2.10, and have gained 8.3 percent this year.

(BusinessDesk)

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