Friday 24th August 2018
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NZ Windfarms has reported a $14.7 million net loss after the departure of Vector as a major shareholder caused the company to forfeit more than $58 million of historic tax losses.
Vector, which previously owned 22 percent of the firm, sold out in February. The significant loss of shareholder continuity required the reversal of previous losses and incurred a $15.5 million tax expense in the June year, NZ Windfarms chair Stuart Bauld said.
While the change has no cash flow effect, it also caused the loss of about $200,000 of imputation credits.
NZ Windfarms operates the Te Rere Hau wind farm south-east of Palmerston North. During the past two years the company cut its staff, settled consent disputes with neighbours, bought the project’s lines and transformers from Powerco and changed its operation to avoid running at times of low power prices or in damaging, turbulent wind conditions.
While weak wind conditions saw generation volumes fall 17 percent to 103,014 GWh during the year, higher wholesale prices increased revenue 26 percent to $7.7 million. That included almost $350,000 from the firm’s new hedging strategy.
Operating costs were more than $2 million lower at $3.7 million. Earnings before interest, tax, depreciation and amortisation jumped to $3.95 million from $280,000 a year earlier.
NZ Windfarms shares fell 0.1 cent to 13.5 cents, taking their loss this year to almost 16 percent.
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