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In a week when the nation is getting more than its fair share of both, energy company TrustPower says its profit will be affected by a lack of wind and rain.
Earnings before interest, tax, depreciation, amortisation and fair value movement of financial instruments (Ebitdaf), as advised in mid-June, would be down by between $15 and $20 million for the first quarter, TrustPower said.
The outcome for the first quarter would now be at the lower end of this range. "A combination of very low inflows into hydro catchments during April to June and very low wind production during May contributed to generation production being 129 GWh or 22 per cent below long term expectation," the company advised yesterday.
Low lake levels meant the company had been forced to buy power from the spot market at high prices - at an average of $245 MWh compared to $64 MWh for the same period last year.
Nevertheless strong earnings growth was expected for the rest of the year taking into account a full year contribution of Tararua Stage III and contributions from Deep Stream Hydro and Snowtown Wind Farm following commissioning of these projects.
