Demand slump weighs on EnergyAustralia
Earnings of EnergyAustralia, which incorporates the TruEnergy business, slumped by 42.1 per cent to $HK1685 million ($210 million) in 2012, amid a slowdown in demand across the board - led by a 10 per cent slump in Victoria - and weak wholesale electricity prices.
China Light and Power, which owns EnergyAustralia, told investors earlier today it did not expect to substantially boost investment in Australia in the present climate.
Formerly known in Australia as TruEnergy the company last year shelved plans to list shares in Australia due to the poor market condition.
"I do not envisage substantial investment in new assets or projects in Australia, with the exception of a limited amount of wind generating capacity and possible participation in the planned privatisation by the NSW Government of its remaining interests in State-owned power generation assets," the group's chief executive, Andrew Brandler, said.
EnergyAustralia’s 2012 operating earnings fell to $HK1685 million from $HK2911 million a year earlier, it said.
"This 42.1 per cent decrease ... was caused by a combination of factors including reduced customer demand, suppressed wholesale electricity prices, higher operating costs and higher fair value loss on energy contracts," it said.
Operating costs rose 35.7 per cent, reflecting higher employee and contractor costs, increased marketing expenditure, bad and doubtful debts, and increased costs associated with its NSW generation operations.
Revenue in Australia for 2012 rose to $HK66.8 billion from $HK56.3 billion with the net profit for 2012 reaching $HK1 billion up from $HK$786 million in 2011.
Flooding at the Yallourn operation cost $144 million it said.