31 Oct 2018
Dundonnell Wind Farm
The Board of Tilt Renewables Limited (“Tilt Renewables”) today approved the $560 million Dundonnell Wind Farm project to proceed to financial close. This is expected to occur before the end of 2018, with construction planned to start in early 2019 in order to achieve full commercial operations by September 2020.
Also, Tilt Renewables has today executed another 15-year offtake contract with an investment grade counterparty for a further 50% of the capacity of the wind farm which in addition to the VRET Support Agreement at approximately 37% of the output, brings the total contracting level to 87%. Deion Campbell, CEO of Tilt Renewables commented “these contracts substantially de-risk this project and demonstrate our ability to execute our strategy”.
Interim Results for the period ended 30 September 2018 (“1H FY19”)
Tilt Renewables Limited consolidated EBITDAF1 was $66.9 million for 1H FY19, up 36% on the corresponding period from the previous year (“1H FY18”). The strong financial performance was driven by wind conditions above long-term expectations across the New Zealand and Australian portfolio, and the first contribution of electricity production from Salt Creek Wind Farm commissioned in July 2018. Tilt Renewables’ wind assets produced 1,070 GWh in 1H FY19, 23% higher than 1H FY18 and 58 GWh above long-term expectations. Underlying Net Profit After Tax for 1H FY19 was $3.8 million and as at 30 September 2018, Tilt Renewables had a net debt position of $591 million.
The Directors also approved an interim unfranked and unimputed dividend of AUD 1.60 cents per share, with a record date of 16 November 2018 and payment date of 30 November 2018. As previously announced Tilt Renewables guidance for Underlying EBITDAF for the year ending 31 March 2019 has now been revised up from a range of $120 – $127 million to a new range of $134 – $138 million.
Steve Symons Chief Financial Officer and Company Secretary
All figures quoted above are in Australian dollars
1 Earnings Before Interest, Tax Depreciation, Amortisation, Fair Value Movements of Financial Instruments (“EBITDAF”) is a non GAAP financial measure but is commonly used within the energy and infrastructure sectors as a measure of performance as it shows the level of earnings before the impact of gearing levels and non-cash charges such as depreciation and amortisation. Market analysts use this measure as an input into company valuation and valuation metrics used to assess relative value and performance of companies across the sector.
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