Windflow expects $5-6m full year loss
Wind turbine maker Windflow Technology is expecting a full year loss between $5 million and $6 million, as delays push the completion of some turbines out until after the end of the financial year on June 30.An agreement reached in early April with custom
Wind turbine maker Windflow Technology is expecting a full year loss between $5 million and $6 million, as delays push the completion of some turbines out until after the end of the financial year on June 30.
An agreement reached in early April with customer NZ Windfarms was now unconditional after that company completed a capital raising last week, Windflow said today.
The agreement settled a dispute between the companies.
But a result of the fundamental uncertainty involved had been that Windflow delayed ordering some more costly components, some of which also had long lead times.
Production levels had been behind original expectations, and although ordering from suppliers had now resumed, the delay would lead to a likely eight to 10 week gap in nacelle (generator structure) production, Windflow said.
The final 16 turbines for NZ Windfarm's Te Rere Hau development, near Palmerston North, would be finished after June 30, rather than in this financial year, as had been intended.
With a portion of revenue deferred until the 2010/11 period, the loss in 2009/10 would be higher than had been anticipated.
Windflow chief executive Geoff Henderson said the company had yet to confirm its critical next turbine sale after Te Rere Hau and continued its efforts to achieve that.
It was receiving regular expressions of interest in the Windflow 500 turbine, 65 of which had been operating at above 95 percent availability for the past five months now at Te Rere Hau, establishing a good track record on the windy and turbulent ridge-tops of the site, Mr Henderson said.
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