Takeover target Tilt Renewables' annual operating profit fell by 36 per cent in what the company said was a transitional year.
The wind farm specialist sold its 270 megawatt Snowtown 2 Wind Farm, near Adelaide, in the previous year and ramped up operations at Dundonnell, in Western Victoria, and Waipipi in Taranaki in the latest year to March.
Tilt is in the throes of being taken over by Powering Renewables Australia Fund (PowAR) and Mercury NZ.
The company's earnings before interest, tax, depreciation, amortisation and financial instruments (ebitdaf) came to A$74.9 million ($104.6m), down from A$117.5m, in 2020.
Tilt's net profit came to A$66.95m compared with A$478.4m in the previous year - which was inflated by the Snowtown sale.
Short duration delays during grid connection testing, like those experienced at Dundonnell had influenced short-term earnings, but would have minimal impact on the long-term value created by these 30 year assets, it said.
Normalised for Snowtown, revenue was 18 per cent higher than the prior year.
The existing portfolio delivered softer production volumes, down 8 per cent in Australia and 9 per cent in New Zealand largely due to below average wind conditions.
Tilt said a planned mid-life refurbishment programme at Tararua 3 Wind Farm was well progressed and would improve availability over the short term at that site.
In Australia, commissioning revenue from Dundonnell partially offset the loss of Snowtown production and softer spot prices.
In New Zealand, earnings from Waipipi more than offset the lower earnings from the existing New Zealand assets.
With the retained portion of Snowtown proceeds, Tilt's balance sheet remained strongly positioned with cash and liquid financial assets sufficient to fund the anticipated Rye Park development in New South Wales.
"With 29 per cent gearing at March 31 and no debt refinancing requirements until 2023, Tilt retains the debt headroom and flexibility to support the large development pipeline, as opportunities present," the company said.
Tilt split its earnings guidance between Australia and New Zealand.
In Australia, the ramp up of Dundonnell production is budgeted to continue through the first half, resulting in an Australian ebitdaf range of A$58m to A$66m.
The New Zealand ebitdaf guidance range, incorporating a full 12-month contribution from Waipipi, is expected to be A$46 to A$48m.
Group 2022 ebitdaf guidance is A$104m to A$114m.
Tilt said it was a landmark year for the TLT business with the delivery of two key construction projects and external validation of the value accumulated in the TLT platform, all against the backdrop of a global pandemic.
A scheme of arrangement signed with (PowAR) and Mercury NZ Limited sets the business up to accelerate the transition to renewables in Australia and New Zealand, Tilt said.
The offer equates to NZ$8.10 a share - a 106.6 per cent premium above the Tilt share price prior to the announcement of majority owner Infratil's strategic review of its interest last December.
Craigs Investment Partners said the A$74.9m profit was comfortably within Tilt's guidance range of A$65-$80m.
"The result today takes a back seat to the $8.10 offer for the company, with the shares trading at $8.00," Craigs said.