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Wind turbine maker Windflow Technology has reported a $2.04 million loss in the 12 months to June 30 and said it would make a loss on turbines being made for the Te Rere Hau windfarm if raw material costs stayed high.
The company said on Friday it decided to capitalise a $1.26 million cost associated with seeking certification for its product rather than treat it as an expense.
The company revealed cost increases for its raw materials, including a 91 per cent increase in the price of steel.
"In the case of Te Rere Hau, the most recent turbine confirmations we have received have been at a selling price which does not take into account the recent large raw material price increases such as steel.
"If steel and some of the other costs remain high, then it is likely that Windflow will incur a loss on the production of those turbines ... "
At balance date, confirmed orders stood at 60 turbines, valued in excess of $45 million, for stages two and three of the Te Rere Hau joint venture.
Total revenue rose from $2.81 million to $12.11 million in the year to June 30.
- NZPA
