Horizon Energy cuts earnings guidance

JASON KRUPP
Last updated 10:13 11/02/2013

Relevant offers

Industries

Chart of the day: How much have Aucklanders' electricity bills risen? Insurers hit with 2500 Cyclone Debbie claims, brace for more Chinese company Binxi withdraws takeover offer for Southland's Blue Sky Meats Queenstown plans for new Holiday Inn Express unveiled Xero finds machine-learning from the cloud will be trickier than expected Australian mining boss Gina Rinehart turns to netballers to cut costs at Roy Hill mine Xero passes million-customer milestone Another New Zealand Post and Kiwibank closes its doors Chart of the day: How many Kiwis are jetting overseas from Auckland Airport? Kiwis for kiwi reap sweet rewards from Whittaker's partnership

Horizon Energy Distribution has cut it earnings forecast by 21 per cent due to higher costs of transmission, regulatory prices changes, and expenses relating to its acquisition of Aquaheat.

The Whakatane-based lines company said it expects net profit for the year to March 31 to come in at $3.4 million, down from a previous forecast of $4.3m, and a net profit of $6.4m earned in the previous year.

Chairman Rob Tait laid the blame for the revision on higher transmission costs as well as provisions needed to meet the Commerce Commission's price reductions.

In addition, the company said its balance sheet would wear operating losses from subsidiary Aquaheat, as well as the remaining costs from the acquisition.

The earnings revision could potentially widen as Horizon Energy said the currency forecast did not include the financial impact the collapse of Mainzeal Property and Construction would have on Aquaheat.

The subsidiary is active in the commercial and industrial building sector, specialising in hot water systems.

Tait said the exact exposure to Mainzeal couldn't be quantified yet but further advice would be given to the market once it was available.

The firm also said the forecast could be impacted by any mark-to-market changes in the value of it interest rate swap portfolio from February 1 to March 31.

Horizon Energy shares, which trade infrequently, closed at $3.40 on Friday, a level that's broadly held for much of the past 12-months. 

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content