The Brisbane-based energy company said the move to sell the Source Power & Gas business is a part of its ongoing process to divest its non-core US residential book.
ERM Power CEO and managing director Jon Stretch (pictured) says the sale was a good outcome for the company and its long-term plans for growth.
"The sale proceeds exceed the original purchase price of Source Power & Gas, acquired by ERM Power in early 2015," Stretch says.
ERM Power purchased Source Power & Gas for US$7.8 million which included both the commercial and industrial and residential businesses.
"The divestment of the non-core residential retailing book ensures we direct our resources and efforts to our core area of expertise, the C & I market, which has been the hallmark of our success in Australia," he says.
ERM Power's profits plummeted in 1H17 with underlying NPAT at a loss of $51 million compared to a profit of $9.1 million in the previous corresponding period, but the company is on track to deliver a $3/MWh FY2017 gross margin.
ERM Power is the second largest electricity provider to commercial businesses and industrials by load with operations in every state and the ACT. The company also sells electricity in the US and operates gas-fired peaking stations in Western Australia and Queensland.
EPW shares were trading down by just under one percent at 12.30pm AEST at $1.33.
Business News Australia
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