NZ Windfarms triples third-quarter revenue

BUSINESSDESK: NZ Windfarms third-quarter revenue tripled, reflecting the completion of its 97-turbine Te Rere Hau wind farm and higher electricity prices offset by lower electricity output caused by a wind speed drop.

Revenue from electricity sales jumped to $2.5 million in the three months ended March 31, from $749,000 in the same quarter last year, the company said.

The wind farm, located near Palmerston North, was completed in July last year.

Its performance “is strongly influenced by wind conditions and electricity prices which are both subject to natural variability and are beyond NZ Windfarm's control”, it said.

The combination of higher prices and lower output meant revenue was slightly higher than had been forecast, based on appropriate long-term averages.

Electricity output rose to 31,482 megawatts per hour (MWh) from 22,715 in the same three months last year.

The average price per MWh was $78.33, compared to $32.97 in the quarter a year earlier.

The turbines had an average 97.1% availability, up from 93.9%.

The latest quarter's results took revenue for the nine months ended March 31 to $6m compared to $2.4m.

NZ Windfarms said it has nearly completed integrating TRH Services, the windfarm maintenance and operations unit of Windflow Technology acquired last year, with its existing activities.

The company said a decision by the Environment Court on whether Te Rere Hau is meeting the noise conditions of its resource consent can be expected some time this month.

NZ Windfarms booked $322,000 one-off costs in its half-year results to cover the court action brought by the Palmerston North City Council.

Shares last traded on Tuesday at 18.5 cents, down from their year high at 19.5 cents last July but up from September's 13 cent low.