FIRST CUT: Contact Energy reports $116M half year loss

FIRST CUT: Contact Energy reports $116M half year loss on asset writedowns

By Pattrick Smellie

Feb. 14 (BusinessDesk) - Electricity generator and retailer Contact Energy announced a $116 million net loss in the six months to Dec. 31, as it booked write downs of $257 million on its Otahuhu B power plant, which it closed last year, and a decision that its Taheke geothermal prospect is unlikely to be developed in the foreseeable future.

The net statutory loss compared with a $51 million net profit for the same period a year earlier, the Wellington-based company said in a statement to the NZX.

The result is the first half-year result since Contact emerged from the effective control of Origin Energy, which quit its 53.1 percent shareholding last August.

Underlying earnings, stripping out one time factors, was down 3.9 percent at $73 million and earnings before interest, tax, depreciation, amortisation and changes in the value of financial instruments was flat, down 1.2 percent at $257 million.

Contact announced this morning it had sold the Otahuhu power station site to an Auckland property developer, Stonehill Property Trust, for $30 million, with both parties to share in the proceeds of the sale of assets on the site over the next 12 months.

(BusinessDesk)

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