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.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Facebook exec on info requests from NZ govt agencies: the numbers, and the criteria for forking over your data
- Concession on fees sees ANZ first onboard for Apple Pay
- EPL options narrow: Sky, beIN or nothing
- Coliseum bags investment from US giant Discovery, launches RugbyPass
- READER POLL RESULT: Will a land tax on foreign-based house buyers cool the housing market?
Most listened to
- Listen to the week’s top business news on NBR Radio’s week in review
- Matthew Hooton on Winston Peters’ plan to become prime minister
- Tim Hunter asks: Is the government planning to hand control of water to iwi?
- Rob Hosking breaks down the political and economic week that was: Has everyone gone tax mad?
- Rodney Hide on the technological development and economic advance in transport