Gas distribution company Envestra says that it now expects to record a profit after tax for the year ended 30 June 2014 of around $145 million rather than that listed in previous market guidance of around $140 million.
The increase in full-year guidance is as a result of higher than anticipated gas volumes to the residential and commercial markets in the first five months of the 2013-14 financial year.
Borrowing costs are also now expected to be lower than previously anticipated. Nevertheless, the full-year result is still subject to any abnormal items that may arise, including potential weather impacts on gas volumes, in the intervening period.
Envestra’s Managing Director, Ian Little, said “The updated guidance reflects the benefits to the business of its diversified regulated networks and attractive loan portfolio”.
Envestra further advises that it expects to record a half-year Profit after Tax at 31 December 2013 of around $85 million, which is a 44% increase on the prior corresponding period (31 December 2012). The increases reflects higher gas distribution tariffs applying to the Company’s networks, particularly in South Australia and Queensland.
Envestra generates about 55% of its revenue in the first-half of the year due to the higher gas volumes transported during the winter period.