The proceedings were at a relatively early stage and SkyCity Adelaide was working towards agreeing facts and potential admissions before the Federal Court identified how to navigate any remaining disputed issues.
SkyCity said estimating the potential exposure to penalties with any degree of accuracy was challenging, given the outcome depended on some unknown factors.
The size of any penalty could vary materially from the amount of the provision.
The timing of any civil penalty to be paid by SkyCity Adelaide was also unclear, the company said today.
The provision has been made to meet accounting standards.
“This provision is an estimate of the potential exposure to penalties and legal costs associated with the proceedings, and considers a wide range of parameters that could potentially be considered by Austrac and the court,” Skycity said.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.
Contact takes profit hit
Contact Energy today announced an annual net profit of $127 million for the June 30 year after being hit by an $84m expense at the Ahuroa Gas Storage (AGS) facility.
Heavy rainfall over the year contributed to the gentailer’s lowest-ever thermal generation. Net profit was down 30.5 per cent from the $182m it recorded in 2022.
A review of the AGS showed it had reduced storage capacity. Taking AGS out of the equation, Contact’s underlying net profit was $211m.
Underlying earnings before interest, tax, depreciation amortisation and fair value adjustments (Ebitdaf) were $573m, excluding a $113m reduction from the Ahuroa expense. Ebitdaf was up by $27 million from 2022 due to higher electricity prices and other income.
That was partly offset by lower electricity sales volumes, higher thermal generation costs and higher fixed costs, including from inflation.
The company reported $2.12 billion in revenue, a drop of 11.3 per cent from 2022. Contact’s operating cashflow was down $48m to $282m. It announced a final dividend of 21 cents per share, partially imputed at 25 per cent, recorded on September 7 and payable on September 26.
The $84m onerous contract provision expense for Ahuroa was a non-cash accounting adjustment, “reflecting the difference between the expected benefits from access to gas storage and the contracted schedule of payments of the remaining 10 years of the contract”.
Contact Energy chief executive Mike Fuge said that the company had delivered a solid performance despite soft short-term wholesale market conditions.
The highest North Island rainfall on record had depressed spot market prices and saw greater price separation between the North and South Islands.
“We responded by purchasing excess renewable electricity from the wholesale spot market and reduced our thermal generation to the lowest in Contact history.”
The company was preparing for the 174 MW Tauhara geothermal plant to come online by the end of 2023 and was on track to bring Te Huka unit 3 online by the end of next year.
- BusinessDesk
