Trustpower raises earnings guidance again, boosting Infratil outlook
By Paul McBeth
Oct. 13 (BusinessDesk) - Trustpower raised annual earnings guidance for a third time this financial year with strong
wholesale electricity prices on both sides of the Tasman and increased generation in New Zealand, boosting the outlook
for controlling shareholder Infratil.
The Tauranga-based company forecasts earnings before interest, tax, depreciation, amortisation and fair value
adjustments to be between $255 million and $270 million in the year ending March 31, 2018, up from a previous forecast
of $225 million-to-$245 million. Trustpower's New Zealand generation climbed 16 percent to 729 gigawatt hours in the
September quarter from a year earlier, largely due to its North Island hydro-plants, while the average spot price
generated more than doubled to $98 per megawatt hours.
"The increased forecast has been driven by the favourable trading conditions in the year as well as a recalibration of
the expected Australian generation determined as part of the current strategic review," chief financial officer Kevin
Palmer said. "Trustpower now expects its Australian ebitdaf to be in line with FY17."
The electricity generator-retailer has already upgraded earnings guidance twice this year, citing favourable trading
conditions and hired Forsyth Barr to look at spinning out its Australian hydro generation assets.
Listed infrastructure investor Infratil holds a controlling stake in Trustpower and today's increased earnings guidance
feeds into the shareholder's own accounts. Infratil now sees ebitdaf of between $485 million and $525 million in the
year ending March 31, 2018, up from a previous forecast of $460 million-to-$500 million.
Trustpower shares last traded at $5.67 and have gained 20 percent so far this year, while Infratil was at $3.11, up 13
percent this year.
(BusinessDesk)