Genesis knocks $73m off profit forecast to allow for Tekapo buys

Buying Tekapo A and B hydro power stations from Meridian Energy for $821 million should knock $73 million after tax off state-owned Genesis Energy's full-year bottom-line profit.

The company yesterday said its assets had been revalued to $2.58 billion, about $320 million higher than their anticipated book value at June 30.

The rise was net of a revaluation loss of about $101 million (to be spent on upgrading) against the acquisition costs of the Tekapo power stations.

Net impact on equity rose about $230 million, while net impact on income was a revaluation loss of $73 million after tax. Without that revaluation loss, Genesis would expect to comfortably exceed the $40 million net profit after tax financial target in its statement of corporate intent.

Full-year ebitdaf earnings to June 30 were expected to be between $280 million and $300 million, including a contribution from the power stations.

Genesis public affairs manager Richard Gordon said the board had decided because of work required at the Tekapo stations, the value needed readjustment.

- NZPA