Horizon Energy cuts guidance, Mainzeal losses still to come

Eastern Bay of Plenty electricity lines company Horizon Energy has sliced its forecast earnings by a fifth on the cost of regulation and last year's Aquaheat acquisition, and signalled there may be more to come after its exposure to the collapse of Mainzeal Property and Construction.

The Whakatane-based company expects to post net profit of $3.4 million in the year ending March 31, down from a previous forecast of $4.3 million, Horizon says in a statement.

That is down from earnings of $6.4 million a year earlier. The downgrade does not include any loss arising from the Mainzeal receivership, which it said last week would hit its bottom line.

Chairman Rob Tait says the reduction is due to increased transmission costs, a provision made for a Commerce Commission required price decision, expected losses from its Aquaheat subsidiary and acquisition costs relating to the purchase.

Horizon also warned any mark to market changes in the value of its interest rate swap portfolio between this month and the end of the financial year may impact on the forecast.

The infrequently traded shares were unchanged at $3.40 on Friday and have gained 3 percent this year.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7282 -0.0001 -0.01%
AUD 0.9496 0.0030 0.32%
EUR 0.6481 -0.0008 -0.12%
GBP 0.5610 0.0025 0.45%
HKD 5.6459 0.0007 0.01%
JPY 73.9540 0.4370 0.59%

Commods

Commodity Price Change Time
Gold Index 1319.6 -1.410 2016-09-29T00:
Oil Brent 49.8 0.570 2016-09-29T00:
Oil Nymex 47.8 0.780 2016-09-29T00:
Silver Index 19.2 0.070 2016-09-29T00:

Indices

Symbol Open High Last %
NZX 50 7343.4 7361.1 7343.4 0.24%
NASDAQ 5311.3 5317.0 5318.5 -0.93%
DAX 10545.6 10575.3 10438.3 -0.31%
DJI 18322.9 18366.2 18339.2 -1.07%
FTSE 6849.4 6941.1 6849.4 1.02%
HKSE 23435.3 23484.4 23739.5 -1.75%
NI225 16474.5 16497.5 16693.7 -1.46%
ASX 5471.3 5471.3 5471.3 -0.65%