KCE announces annual result – profit up 20%
KCE announces annual result – profit up
20%
Electricity generator and retailer,
King Country Energy (KCE), has announced its fully audited
annual result for the year ending 31 March 2012. The
Company’s consolidated profit after tax was $5.3 million
for the year, compared with a $4.4 million result for the
previous financial year.
Earnings
before interest, tax, depreciation, amortisation, fair value
movements of financial instruments and asset impairments
(EBITDAF) were $11.1 million, compared with a $8.5 million
result for the previous financial
year.
KCE Chairman, Brian Gurney, said
the year ending 31 March 2012 produced very good results
which built on the previous year’s solid performance.
“This past financial year has produced a number of
achievements for KCE and the result is again very healthy,
reflecting further positive initiatives within the business
over the twelve month period.
“The
Company is very well-positioned with a solid business model,
good operating cashflows and a strong platform for growth,
following the recent acquisition of the other half of
Mangahao power station,” said Mr
Gurney.
The Company’s operating
revenue decreased slightly to $32 million. Operating
expenses, including wholesale electricity costs, decreased
11% on the previous year. This decrease was primarily driven
by a reduction in electricity volumes purchased during the
year, mainly due to the loss of large contract customers in
the previous year.
“The New Zealand
retail electricity market is increasingly competitive, and
KCE with its relative reliance on the wholesale hedge
market, is exposed to retail competition. The strength of
our financial result shows that despite the increasingly
competitive environment, KCE has been able to stay one step
ahead and produce good returns. In the medium term, with
100% ownership of Mangahao power station, KCE is much better
positioned to compete and grow its retail business,”
explained Mr Gurney.
Mr Gurney noted
KCE continued its conservative financial policies throughout
the year, maintained a strong balance sheet, and
experienced strong positive operating cashflows. The
Group’s operating cashflow was $10.6 million for the year
to 31 March 2012 and the year-end cash position in the
Group’s balance sheet was $11.2
million.
During the financial year,
KCE’s total electricity retail volume decreased by 11% to
202 GWh. The company’s total customer numbers declined
through the year to 18,000 connections as a result of retail
competition in the area.
Of the
Company’s total retail volume, 131 GWh was generated
through its own hydro generation schemes, an 11% increase
from last year. The Company cited good local hydrology
within certain periods relative to the national average as
the main reason for the increase in generation
output.
In the medium term, KCE remains
focused on reducing its exposure to the hedge market,
exploring opportunities to add to its generation portfolio,
and growing its retail business using the additional output
provided by the Mangahao
acquisition.
The Company announced an
unimputed final dividend of 12 cents per share, payable on
10 August 2012. This, combined with the interim dividend of
12 cents per share, provides a total gross return of 24
cents per share for the financial year ended 31 March 2012.
The company is currently reviewing its dividend policy for
future dividends. For more information about KCE, visit:
www.kce.co.nz.
-ends