Infratil lowers FY guidance as Manawa Energy cuts forecast
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The news: Infrastructure investor Infratil has slashed its FY25 earnings guidance after its majority owned electricity company Manawa Energy reduced its full-year forecast.
The numbers: Dual-listed Infratil said its adjusted FY25 proportionate operational EBITDAF guidance range is now NZD962 million ($884.3 million) to NZD1.012 billion, down from NZD980 million to NZD1.03 billion.
The revision came as NZX-listed Manawa cut its EBITDA guidance range from NZD130 million to NZD150 million to NZD95 million to NZD115 million.
Infratil is one of two major shareholders in Manawa, holding a 51% stake in the company, while Tauranga Energy Consumer Trust owns 26.8%.
Infratil shares dipped 0.2% to $9.70 by 11:25am AEST.
The context: Manawa revised down its full-year guidance after setting a provision for a potential bad debt on its contract with an electricity retailer which is in default of its payment terms.
Manawa said it will "immediately initiate steps to reduce the risk of further exposure" and "work to recover as much of the outstanding debt as possible".
The Tauranga-based company noted that it is also being impacted by electricity market conditions, including "the extended dry and calm sequence experienced for a number of months" which is depleting hydroelecricity and wind power generation volumes.
Purchases of any energy shortfalls to meet its contractual supply commitments are occurring at "extremely elevated prices relative to historic norms", the company said.
The source: ASX announcement
