Manawa Energy (MNW) H1 2025 earnings summary

Executive summary

• H1 FY25 was marked by unprecedented market conditions, including extreme volatility, record-high wholesale prices, low hydro inflows, and a major customer default, resulting in a 44% drop in reported EBITDAF and a net loss after tax.

• Asset refurbishment and development programs progressed, improving reliability and restoring capacity, with zero reportable health and safety incidents.

• Entered into a Scheme Implementation Agreement with Contact Energy for a full acquisition, valuing shares at NZD 5.95 and offering a 47.4% premium, pending regulatory and shareholder approvals.

Financial highlights

• Normalized EBITDAF for H1 FY25 was NZD 45.7M, down 41% year-over-year; reported EBITDAF was NZD 43.6M, down 44%.

• Net loss after tax was NZD 3.3M, compared to a NZD 55.9M profit in the prior period, impacted by a NZD 23M non-cash fair value loss on financial instruments.

• Interim dividend declared at 4.0cps, down 50% year-over-year, with total dividends paid during the period at 11.0cps.

• Capital expenditure for H1 was NZD 25.9M, 18% lower than the prior period.

• Net debt increased to NZD 473.3M as of 30 September 2024.

Outlook and guidance

• FY25 normalized EBITDAF guidance reaffirmed at NZD 95–115M, assuming normal hydrology and no material adverse events.

• FY25 capital expenditure guidance remains at NZD 40–50M, excluding capitalized interest.

• Additional hedging at elevated prices will impact H2 FY25 results.

• Full-year result will depend on Q4 trading, storage levels, and market prices.