The net profit for the six months to December 31 was $17.6 million, down 81% compared with the previous corresponding period. Photo / Supplied
The net profit for the six months to December 31 was $17.6 million, down 81% compared with the previous corresponding period. Photo / Supplied
Electricity generator and retailer Mighty River Power, which the Government intends to partially privatise later this year, reported a net profit of $17.6 million for the six months to December 31, down 81 per cent compared with the previous corresponding period.
Mighty River said the sharp fall was the resultof non-cash value movements in its derivative financial instruments during the half year, largely due to the global fall in long term wholesale interest rates.
The company said its earnings before net interest expense, income tax, depreciation, amortisation and financial instruments (EBITDAF) came to $254.5m, up nine per cent compared with the same six month period in 2010.
The increase in EBITDAF was driven by a 4.5 per cent increase in the weighted average price received from residential and commercial customers during the period, and a $7m one-off gain from the sale of carbon credits.
Mighty River said that, based on the company's interim results and a strong start to the second half of 2012, its forecast EBITDAF for 2011/12 was in a range of $460m to $475m, up from an earlier guidance of $430 million to $450 million.
The company announced an interim dividend of $74.8m, up $10.1m on the previous corresponding period.
Mighty River will be the first state asset to be partially privatised under the Government's mixed ownership model. It is expected to come to the market in September.
The company once formed part of the Electricity Corporation of NZ before its breakup in 1999.
