Tilt warns of weaker first quarter earnings as low winds cut production
By Sophie Boot
June 30 (BusinessDesk) - Tilt Renewables, the wind and solar generation facilities which split from Trustpower last
year, has warned earnings will be as much as A$12 million lower for 2018 after a weak start to the year.
Lower wind conditions across Tilt's Australian and New Zealand portfolios, particularly in South Australia, mean first
quarter production across the group will be 30 percent below expectations. The Auckland-based company expects to
generate 317 gigawatt hours (GWh) in the three months to June 30, a 39 percent drop from the first quarter of 2017.
Consequently, earnings before interest, tax, depreciation, amortisation and adjustments for fair value (ebitdaf) for the
quarter will miss forecasts by between A$10 million and A$12 million, the company said.
Ebitdaf for the 2017 year was A$124 million, 1 percent lower than in 2016, reflecting the cost of transitioning to a
standalone business. The company expected the full impact of that cost to be seen in the current financial year, on top
of revenue falling by between A$4 million and A$5 million after pricing changes.
The shares last traded at $2.10, and have gained 8.3 percent this year.
(BusinessDesk)
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