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ERM Power (EPW) has overcome floods, industrial action and weak consumption throughout the 2012 financial year to post a 111 per cent jump in net profit to $34.2 million.
The result prompted CEO Philip St Baker (pictured) to forecast the company will “become the fourth-largest seller of electricity in the national market this year.”
St Baker attributes the profit growth to electricity sales and gains from acquiring an 83.3 per cent stake in the Oakey power station and the subsequent consolidation of the utility facility.
“A major driver of the result was our electricity sales business, which was recently rated the number one business-energy retailer for service and value,” he says.
“The other major driver of the result is our generation business where our assets performed above expectation … we expect our generation business to continue to perform strongly over the long-term by delivering value from existing assets and developing and/or acquiring low-cost high value long term assets in the future.”
EPW expects high growth rates to continue as the group consolidates its position in the large commercial and industrial markets and expands to the small to medium enterprise (SME) segment during 2013.
“We are well positioned for development opportunities in the medium-term that we anticipate in Queensland and Western Australia, driven by electricity demand from liquefied natural gas and mining projects,” says St Baker.
“As a rapidly growing vertically integrated energy company, we are also well positioned to play a role in government electricity-generation asset sales in New South Wales and Queensland – or other assets sales if they arise.”
EPW shares increased slightly today to $1.88 per unit.
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