The power generator Manawa Energy has nearly quadrupled its full year profit following a significant one-off gain in its financial instruments.
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The company, formerly known as Trustpower, rebranded the business after selling its retail division to focus on generation.
Key numbers for the year ended March compared to a year ago:
- Net profit $119.8m vs $31m
- Revenue $1.02 b vs $952.8m
- Underlying profit $204.2m vs $200.2m
- Underlying earnings from continuing operations $160m vs $157m
- Final dividend of 16 cents per share and a special dividend of 35 cps.
The bottom line was boosted by a $43.4 million fair value gain on its interest rate and electricity price derivatives.
The underlying profit was slightly below its forecast of between $205m and $220m, which excludes the costs associated with selling the retail business.
Earnings from its generation business rose by 3 percent on the year earlier following an increase in electricity production and wholesale prices.
Chief executive David Prentice said its focus was now on the future after completing the sale of its retail arm to Mercury Energy.
"Manawa Energy's goal is to develop renewable generation to support our country's transition ambition for a thriving, low-emissions and a climate resilient future."
The company said it plans to be flexible in its approach to funding new projects and it was currently assessing multiple projects, including three that were at the feasibility and resource consent stage.
Manway Energy chair Paul Ridley-Smith said the company was confident in charting new territory.
"There is significant potential for regulatory change in the energy sector moving forward, and the possibility of market developments to manage affordability and supply.
"At the same time, new technologies continue to evolve and mature into commercial viability, making it an optimal time to be geared for new investment."
Manawa Energy's board had also declared a special dividend of 35 cents per share.
"We are pleased to be able to reward investors following the sale and consider we have struck the right balance between this and reserving some capital to enable growth and generate longer term returns," Ridley-Smith said.
Looking ahead, the company expected to report an underlying profit of between $140m and $160m for the current financial year, with capital expenditure of between $45m and $55m.
Ridley-Smith said the first six weeks of the current year had been challenging because of dry weather and low wind, combined with high wholesale prices.