After refinancing $1.55 billion in debt, electricity and gas distributor SP Ausnet (SPN) is confident about the 2008/09 financial year, revising its profit outlook up by as much as 15%.
The Victorian-based supplier said yesterday that it now expected net profit for the 2008/09 of $169.63 million, 15% higher than the $147.5 forecast back in November.
Similarly, earnings before interest and tax (EBIT) are now forecast to rise by around 10% to about $500 million, from $454.7 million.
In a statement to the ASX, SPN said the key drivers for the revised earnings outlook included: increased revenues, higher capital expenditure allowances and review of forecastoperating and capital expenditure.
The company also said that another factor is the changes in interest costs due to the refinancing of $1.55bn and finalisation of new interest rate hedges in line with the commencement of the electricity transmission and gas distribution regulatory reset period.
It said the 2008/09 distribution guidance of around 2.5% growth in distributions per security remains unchanged.
In an explanatory memorandum in November, SPN’s forecast for NPAT 2009 was $911.5 million for the ‘new’ SPN Ausnet Group, which was to include the assets the company was proposing to buy from its biggest single shareholder, Singapore Power International.
That figure is double that of the standing current forecast of $454.7 million.
The transaction would have significantly increased the value of the company, however, SPN was unsuccessful in procuring the funding.
For the current financial year (2007/08), which ends on Monday, SP Ausnet said its earnings guidance and distribution guidance of 11.55 cents per security remained unchanged.
SPN is publicly listed on both Australian and Singapore stock exchanges. Singapore Power International owns 51% interest in SP Ausnet.
It will announce its full year results and final distribution in 22 May 2008. .
Shares in SPN added 4.5 cents to 3.7% to $1.25
