Tilt Renewables Ltd (TSX & ASX: TLT), the wind and solar generation facilities which split from Trustpower in 2016, posted an annual loss and trimmed dividends as a lack of wind in Australia and New Zealand impacted on constant generation at its wind farms.
The Tauranga-based company reported a loss of $A2.8 million ($NZ3.02 M), or 0.89 cents per share, in the 12 months to March 31, compared to a profit of $A16.4 M a year earlier.
Earnings before interest, tax, depreciation, amortisation and fair value movements - its preferred measure - dropped 16% to $A103.8 M, as revenue declined 9% to $A158 M ($NZ170.89 M) on a 12% drop in electricity generation to 1,796 gigawatt hours.
“This reduction was driven in New Zealand by below average wind conditions and in Australia by a combination of below average wind conditions and the impact from constraints put in place by the market operator,” the company said.
(Some of those constraints in Australia were invoked because of higher power costs and brown-outs created by the South Australian and Victorian governments in eliminating or cutting back their original base load coal-fired power).
Tilt commented: “The low wind conditions across Australia and NZ were largely experienced in the June 2017 quarter with the impact partially offset by improved Australian production in the last three quarters of FY18.”
The website Sharechat said Tilt’s annual result matched the decline posted in Tilt's first-half earnings when still wind conditions weighed on the alternative electricity generator and prompted the board to reduce its dividend payment.
On Friday the Tilt board declared a final dividend of A1.8 cents per share, payable on June 8 with a record date of May 25, down from 2.25¢ a year earlier. That takes the annual payout to 3.05¢/share compared to 5.25¢ in 2017.
Sharechat said Tilt was more optimistic about the coming year, projecting annual EBITDA of between $A120 M-$A127 M once the 54-megawatt hour Salt Creek wind farm in Victoria comes on stream in July.
The company has bid for the Victorian State Government's renewable energy auction scheme with its 336 MW Dundonnell wind project and was “well-placed” to benefit from “a growing appetite for renewable energy across the Tasman.”
The company said the Rye Park wind farm in New South Wales has also been consented and contracting opportunities were now being explored.
Tilt said the New Zealand outlook has improved since it secured a consent for a North Island option at Waverly in South Taranaki, and on greater national demand with increased production at NZAS’ Tiwai Point aluminium smelter.
Sources: sharechat.co.nz, nzresources.com