Looks like NZ’s windfarms are going down the same road as their overseas counterparts. They will never work.
NZ Windfarms has downgraded its full-year guidance and expects to make a loss as construction delays and low wholesale prices sap revenue streams from its Manawatu development. The company forecast a net loss of $2.4 million in the year ended June 30, slashing its guidance of a $107,000 profit from its April 2010 prospectus.
It expects annual earnings before interest, tax, depreciation and amortisation of $1 million. That comes as it narrowed its first-half loss to $1.8 million in the six months ended December 31 from a loss of $6.5 million a year earlier, the company said in a statement. New chairman Wyatt Creech said earnings were hindered by the construction delays at Te Rere Hau in Manawatu, low wind volumes, and soft wholesale prices due to high storage levels in hydro-lakes.
Two of these problems are not going to go away.
Windfarms has struggled over the last couple of years with hiccups at its Te Rere Hau project, including complaints over the noise levels of its turbines, and a protracted dispute with Windflow Technology, which manufactures its two-bladed turbines. The company has focused on the eastern extension of Te Rere Hau, which will lift the number of turbines to 97, and is expected to be completed by the end of June.
First-half revenue was flat at $1.6 million, and ebitda was a loss of $497,000 compared to a loss of $1 million in 2009. The shares fell 2.4 per cent to $1.63 in trading yesterday, and have dropped 7.2 per cent this year.