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Mighty River releases full-year earnings forecast

State-owned power company Mighty River Power has released a pre-tax earnings forecast of $391 million for the year to 30 June 2011 – up 20% on the 2010 financial year.The estimate is based on mean hydrology, with hydro making up the bulk of the comp

Nina Fowler
Fri, 08 Oct 2010

State-owned power company Mighty River Power has released a pre-tax earnings forecast of $391 million for the year to 30 June 2011 – up 20% on the 2010 financial year.

The estimate is based on mean hydrology, with hydro making up the bulk of the company’s generation portfolio.

Mighty River chief executive Doug Heffernan said that while earnings can vary over a large range due to fluctuating hydro and market conditions, the company is comfortable that the forecast is a reasonable estimate of year-end results.

The pre-tax forecast announced today refers to earnings before interest, tax, depreciation, amortisation and financial instruments (ebitdaf).

Mighty River reported a lower-than-planned ebitdaf of $327.8m in the year to 30 June 2010. The result was driven by drought in the Waikato region, reducing hydro volumes at a time when spot prices for electricity were high, and increased operating costs.

Nina Fowler
Fri, 08 Oct 2010
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Mighty River releases full-year earnings forecast
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