Efficiencies and rationalisations by North Island merchant wind generator New Zealand Windfarms Ltd (NZX: NWF) were reflected in the December half year
The Palmerston-North-based company said total revenues for the six months were $4.3 million, yielding an EBITDA of $2 M.
In October, paid $2.45 M as a full imputed maiden dividend.
Over the past 12 months NZ Windfarms embarked on a cost-out programme, focussed around curtailing turbines in aggressive wind conditions. This dramatically reduced the level of turbine mechanical wear and failure, reducing direct and labour costs.
Regulatory relief was obtained permitting the company to respond to market pricing, and the hedging of forward revenues proved successful in base-lining income.
In September, NWF purchased electrical assets that were the subject of a costly finance lease, yielding savings of $C700,000 per annum and introduced long term debt into the business.
In December, the company brought long-standing noise litigation issues to a close through the adoption of new operating controls on three of its 96 turbines.
Chairman Rodger Kerr-Newell commented: “We promised our shareholders that we would change this company for the better, and we are now seeing tangible financial benefits from the initiatives.”
Kerr-Newell noted that by Christmas NZ Windfarms had completed all its “internal” reconfiguration objectives.
Chief executive John Worth said the strong half year outcome was icing on the cake on a very busy year.
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