Mighty River Power announces higher earnings forecast - again
Mighty River Power has announced a further revised earnings guidance for the 2011 financial year following deferment of some maintenance.
Might River Power today announced an improved earnings guidance of $435 million to $450 million before interest, tax, depreciation, amortisation and fair value changes.
This revised forecast follows on from an increased guidance in March, from $391 million to $420 million to $435 million.
Mighty River Power chief financial officer William Meek said the revised forecast for the financial year to June 2011 was affected by the decision to defer some maintenance on geothermal fields and hydro plants to the next financial year, as well as positive gains in some business areas.
The announcement follows on from credit-rating company Standard & Poor's statement in June that the state-owned Mighty River Power would have higher debt than previously expected with its funding of the construction of the Ngatamariki geothermal power station with no proposed change to the dividend payout ratio policy of 75%.
While S&P said the company's credit rating was not immediately affected by funding the $466 million station, it also said Mighty River Power's key credit metrics would track at the low end of expectations for the rating, and that there was low tolerance for more debt-funded projects.
The power company is one of those the government proposed to open up to foreign investment, while retaining a majority shareholding.
Mighty River Power supplies electricity and thermal energy to customers and has about 20% of New Zealand's retail market.
NBR Staff
Thu, 07 Jul 2011
Thu, 07 Jul 2011
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Mighty River Power announces higher earnings forecast - again
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