Manawa Energy (NZX:MNW) shares down following release of half-year results

Highlights

• Manawa Energy announced a net profit after tax of NZ$391 million.
• Manawa reported a downtrend in most of its key metrics.
• The company stated that it will focus on developing its solar and wind energy projects.

Renewable energy company Manawa Energy (NZX:MNW ) released its half-year results today (9 November 2022). The company reported a net profit after tax (NPAT) of NZ$391 million on the back of the sale of its Trustpower retail business in the early part of the year.

It also reported operating earnings from continuing operations (EBITDA) of NZ$70 million.

The company generated 976 GWh of energy in the first six months of the financial year.

Key metrics

• NPAT: NZ$$391 million, up 239% from NZ$115million over the prior corresponding period (PCP)
• EBITDA from continuing operations: NZ$70 million, down 41% from the PCP
• Underlying earnings: NZ$35 million, down 41% from the PCP
• Earnings per share: 11 cents, down 41% from the PCP
• Operating cash flow: NZ$1 million, down 99% from the PCP
• Electricity generation volume: 976 GWh, down 2% from the PCP
• Electricity sold: 580 GWh, down 66% from the PCP

David Prentice, the chief executive of Manawa Energy, said that in the half year of 2022 (1HFY22), till 30 September, the company focused on getting its new systems and processes up and running alongside optimising its existing portfolio of hydro-generation.

Further, he said that it has been a challenging year as the company had to deal with high prices and low hydro inflows in the April-June quarter. According to Prentice, it was encouraging to see the support from investors for the NZ$150 million bonds launched in August. This is the company’s first attempt at raising money from the market and the bonds were popular and oversubscribed.

New project pipeline

As per the company update, the company’s pipeline of renewable projects was growing quickly to catch up with New Zealand’s need for investment in renewable energy in the next 10 years.

Manawa has landholder agreements for setting up 800 MWh of solar and wind projects. The CEO said that there are many solar and wind energy projects underway.

On the solar front, the company is focusing on getting projects in the upper North Island.

Further, Manawa stated that wind development has a longer lead time than solar, but the company was actively pursuing opportunities. It secured a 250 MW project in Waikato with wind monitoring underway.

Stock update

On 9 November, the company’s stock was trading down by 8.32% at NZ$5.180, at the time of writing this article.