Power generator Hydro Tasmania posts $62 million profit for 2014-2015

Australian power generator Hydro Tasmania announced a profit of $62.3 million before fair value adjustment and revaluations for 2014-2015.

Although this is a decline from the previous two years, with profits above $200 million, the company still considers it positive when looking at the fact that “Demand for energy has flattened across the National Electricity Market, there has been prolonged uncertainty and change in national renewable energy and climate change policy, and new technologies are starting to change the way consumers choose to source energy,” says Grant Every-Burns, chairman of Hydro Tasmania.

Hydro Tasmania says the results are due in part to a savings that resulted from a restructuring that reduced its workforce by about 9% in 2014.

On the other hand, significantly lower rainfall than expected contributed to a 31% decrease in the amount of power generated in 2014-2015, compared to 2013-2014. For hydropower specifically, 8,176 GWh of electricity was generated in 2014-2015, compared with 11,932 GWh in 2013-2014.

This year’s numbers are expected to result in cash returns to the Tasmanian government of $42 million, including a dividend of $25 million.

However, Stephen Davy, chief executive officer, says he expects next year to be much tougher. “The business benefited in 2014-2015 from revenue from renewable energy certificates linked to higher than normal generation during the latter part of 2014. This will not be repeated in 2015-2016,” he said.

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