Tilt Renewables lifts interim profit 1.7% in first standalone report

Tilt Renewables, which split from Trustpower last month and operates wind and solar generation facilities, lifted first-half profit 1.7% 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 September 30, compared to $88.9 million 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 September 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 October 31, having been delayed after a once-in-50-years storm caused significant damage to South Australia's transmission system, meaning its Snowtown wind farms were offline, with the market under suspension. There was no material damage to its wind farm assets from the storm, and the company is helping with regulatory investigations which are expected to take many months, it said.

"Tilt Renewables' immediate focus is to complete establishment activities centred on the company operating as a stand-alone business following demerger," it said in a statement. "Development options continue to be progressed with the group targeting to be in a position to commit to new investments during 2017."

Wind generation production rose 9% in the first half to 1033 gigawatt hours, led by a 13% gain in Australian production to 673 GWh.

"The first six months of the 2017 financial year financial year included a period of strong wind generation conditions in South Australia compared with a lower than average prior period," Tilt said. "The resulting Australian wind production was approximately 13% above prior period and 7% above long-term expectation."

Wind generation in New Zealand was slightly better than the prior period, up 2.3% 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 3c per share unfranked and unimputed dividend, payable on December 9 with a November 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% since it was listed as a separate entity.

(BusinessDesk)