WEL Half Year 2022 Interim Results Released
Unaudited Financial Results for the six months to 30 September 2021
WEL Networks Limited has released its unaudited Financial Results for the six months ended 30 September 2021.
The financial highlights for the half year from continuing operations were:
- Revenue of $65.7 million is $4.6 million lower than September 2020, due to the accrual of $6.6 million relating to the proposed discount to be paid to consumers in April 2022.
- Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA)1 of $22.9 million is $12.3 million lower than September 2020 due to a range of factors including the proposed $6.6m discount, electricity hedging losses, increased staff costs due to a lower capitalisation rate as a result of the COVID-19 lockdowns and investment in new energy initiatives such as Infratec.
- Net Profit after Tax from continuing operations is $6.9 million versus a Net Loss after Tax of $5.4 million from continuing operations in September 2020. The previous interim result included the costs associated with the termination of interest rate swaps relating to the repayment of all bank borrowings following the sale of UFF Holdings Limited (UFH), the holding company for Tuatahi First Fibre Limited (formally known as Ultrafast Fibre Limited).
- Following the sale of the company’s stake in UFH, the company has a strong financial position with Net debt of $129 million. The company also has various investments including an investment portfolio, currently valued at $84 million, and Redeemable Convertible Preference Shares, currently valued at $197 million, associated with the deferred consideration of the UFH sale.
Chair, Rob Campbell said “The company is in a strong financial position that has enabled the reintroduction of the WEL Electricity Discount Programme whilst enabling investment in innovative energy solutions, such as the recently announced 35MW Battery project.”
A full copy of the interim report is available here.
For more information please contact:
WEL Networks Limited Chair
About WEL Networks
Hamilton-based WEL Networks Limited are the fifth-largest electricity distributor in New Zealand and is owned by the WEL Energy Trust. We’ve been serving the Waikato region for over 100 years, distributing power from the national grid, connecting over 90,000 households and businesses to our network.