Hydro Tasmania delivers strong result, despite decreased output

Hydro Tasmania has posted a strong annual result, revealing today an operating profit of $103 million for the 2011-12 financial year, and an EBITDA of $272.4 million – a “record result” in what the state-owned company described as a “challenging year,” and which it says will return more than $140 million to the state in 2012/13, including a dividend of $50 million.

The company made special note of its mainland retail arm, Momentum Energy, which it said delivered an $11 million profit – significantly more than expected in a year of decreased electricity generation.

Hydro Tasmania chairman Dr David Crean said the company was expecting a $140 million boost from exporting more power interstate. “Seventy million dollars we expect to come from increased generation and $70 million from the uplift in the carbon price,” he said.

On its website, Hydro Tasmania said that its result – including total revenue for the year of $1.051 billion, up $238 million from last year – was “achieved with slightly below average generation and during a period in which the business carefully conserved storages in anticipation of the introduction of a price on carbon.” The company’s hydro storages are currently at 60 per cent, the highest they have been for more than a decade.

CEO Roy Adair said the year was also notable for the focus on the State’s electricity sector, through the work of the Expert Panel and the response from the Tasmanian government, who he said had supported the growth strategy through Momentum Energy as the means to leverage the State’s clean energy reputation.

Adair also pointed to Hydro Tasmania’s successful implementation of a new wind development model as another highlight, including the establishment of a strategic partnership with China’s Guohua Energy. This has led to the sell down of a 75 per cent equity share of the Woolnorth wind farms in the state’s north-west, and, last month, a deal on the ultimate sell-down of 75 per cent of the $395 million Musselroe Wind Farm, which began construction in January and is on track to be completed and operational by July 2013.