Less wind, low prices hit windfarm earnings

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Less wind and lower electricity prices than expected affected NZ Windfarms' full year results.

For the year to June the company reported a loss before asset impairments, depreciation, amortisation, discount on acquisition and tax of $533,000.

That was better than the previous year result of a $626,000 loss, but also compared with a prospectus forecast loss of $435,000, NZ Windfarms said today.

The wind resource during May and June had been lower than the projected long term average, while wholesale electricity prices were lower than projected due to above average hydro-lake levels from late April.

Revenue from electricity generation rose to $4.15 million in the latest year, from $812,000 the year before, as turbines became operational.

That increase was offset by higher operational costs and depreciation on the new commissioned turbines, the company said.

Interest income of $334,000 was $2.6m down from a year earlier, due to lower rates and as funds were spent on development of the Te Rere Hau windfarm in the Tararua Ranges near Palmerston North.

Since June 2009 the company's focus had been to complete Te Rere Hau, and in November the final stage three turbines were commissioned, taking the total to 65 turbines, NZ Windfarms said.

In February consent was gained for the eastern extension of the project, and in May a rights issue raised $31.4m.

Work on the 32-turbine fourth stage was under way but delays had set the construction programme back about four months.

- NZPA