A SURGE in electricity sales has delivered record results for ERM Power Limited (ASX:ERM) with the energy provider posting $32.3 million in after-tax profit.
The underlying result is an increase of 23 per cent compared to the previous year, which was driven by an 18 per cent lift in electricity sales. Earnings were also up 12 per cent to $94.4 million.
The statutory profit result of $65.9 million doesn't include impairments of $43 million relating to new power stations, as well as writedowns of gas assets in Western Australia and NSW.
ERM Power managing director and CEO Jon Stretch says the increased sales are underpinned by customer loyalty, as well as an acquisition in the US.
"Eighteen months ago we embarked on a strategy to diversify our business through investment in the small to medium enterprise (SME) market in Australia and subsequently through the US market acquisition," Stretch says.
"Our commercial and industrial business continues to deliver profitable growth, and we have achieved our maiden profit in the SME market.
"At the same time we have commenced building our business in the US, following the successful acquisition of Source Power and Gas in January of this year."
ERM Power clawed a bigger market share with the electricity business achieving record sales of 16.7 terawatt hours, including 0.6TWh in the US.
The SME business achieved profitability earlier than forecast, with more than 29,000 customer sites now under contract.
A partially franked dividend of 6c per share will be paid on October 7.
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