Low electricity prices affected the half year performance of NZ Windfarms, owner of the Te Rere Hau wind farm near Palmerston North.
The company has reported a 34.9% fall in revenue from ordinary activities to $1.73 million during the six months to December, compared to a year earlier.
NZ Windfarms made a net loss for the half year of $6.54 million, compared to a net profit of $2.59 million for the six months to December 2008.
The profit in the earlier period included a $3.16 million discount on the acquisition of a 50% stake in Te Rere Hau.
No dividend is to be paid.
Company chairman Derek Walker says while revenue from electricity sales increased as turbines were commissioned, the increase in revenue was offset by lower interest income as cash funds on deposit were spent developing Te Rere Hau.
Last November the final third stage turbines at the Te Rere Hau were commissioned, taking to 65 the total number of turbines at the project.
But Walker says that achievement was somewhat overshadowed by a dispute with turbine supplier Windflow Technology, and the impact it had on the timing of the capital raising.
He says as a result, NZ Windfarms approached 20% shareholder Vector and negotiated a short term bridging loan facility that would provide funds needed to continue Te Rere Hau and provide working capital until the capital raising was completed.
Further information of the nature of the capital raising will be later released to NZX and shareholders.
In February, the company received consents from hearing commissioners for a further 56 turbines to be installed in an area next to the currently consented Te Rere Hau windfarm.
