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)

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

Comment & Question

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 0.7876 0.0000 0.00%
AUD 0.9228 -0.0001 -0.01%
EUR 0.6299 0.0001 0.02%
GBP 0.4989 0.0001 0.02%
HKD 6.1056 0.0326 0.54%
JPY 92.6460 -0.0010 -0.00%

Commods

Commodity Price Change Time
Gold Index 1196.6 -0.500 2014-11-26T00:
Oil Brent 80.1 -0.140 2014-11-25T00:
Oil Nymex 73.7 -0.400 2014-11-26T00:
Silver Index 16.6 0.000 2014-11-26T00:

Indices

Symbol Open High Last %
NZX 50 5457.4 5462.1 5457.4 -0.08%
NASDAQ 4760.2 4788.0 4758.3 0.61%
DAX 9894.6 9942.7 9861.2 0.55%
DJI 17812.2 17833.8 17814.9 0.07%
FTSE 6731.1 6765.0 6731.1 -0.03%
HKSE 23833.2 24176.6 23843.9 1.12%
NI225 17348.0 17432.6 17407.6 -0.14%