Pacific Energy posts record earnings

Power generator Pacific Energy has reported a 37 per cent increase in half-year earnings despite a slowdown in new resource project development.

Pacific notched up record earnings before interest, tax, depreciation and amortisation of $17.3 million in the six months to December 31 2013, primarily driven by its Kalgoorlie Power Systems business.

KPS commissioned 56 megawatts of new power capacity across five power stations in the first half of the 2014 financial year, taking its total contracted capacity to 210MW.

Pacific reported net profit after tax of $8.3 million, representing a 27 per cent increase on the previous six months, while the company’s revenue was up 34 per cent to $24.9 million.

The results prompted Pacific to revise its FY14 earnings guidance slightly higher to between $32 million and $34 million.

It also declared a 1 cent fully-franked interim dividend.

“We are delighted to deliver Pacific Energy’s 10^th consecutive period of earnings growth underpinned by the outstanding performance of the Kalgoorlie Power Systems business which continued to deliver exceptional construction execution and commissioning results,” Pacific managing director Adam Boyd said.

“The company’s record earnings result was achieved despite the backdrop of the slowdown in new resource project development in Australia.

“The KPS business generated significant cash flow during the current low growth phase of the resource sector cycle while the curtailment of new mine development moderated the capital expenditure commitments of the business.”

KPS recently secured contract extensions for the supply of electricity to a 10MW power station at Saracen Mineral Holdings’ Carosue Dam gold project in the Goldfields and a 13MW power station at Newmont Mining’s Tanami gold operations in the Northern Territory.

Pacific shares were trading more than 10 per cent higher at 43.5 cents at 12:46pm WST.