28/08/2009 - 15:28

Alinta owner narrows loss to $149m

28/08/2009 - 15:28

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Babcock & Brown Power, the owner of Alinta, has narrowed its net loss in fiscal 2009 and says it hopes to announce by the end of November how it will deal with more than $3 billion of debt and whether it will change its company structure.

Alinta owner narrows loss to $149m

Babcock & Brown Power, the owner of Alinta, has narrowed its net loss in fiscal 2009 and says it hopes to announce by the end of November how it will deal with more than $3 billion of debt and whether it will change its company structure.

The net loss was $149 million for the 12 months to June 30, compared with a loss of $426.5 million the year before, Sydney-based BBP said in a statement on Friday.

"Earnings were disappointing in 2009 due to a combination of operational issues coupled with milder than expected weather and weak economic conditions leading to lower demand," chief executive Ross Rolge said in the statement.

"We have endeavoured to focus on the key issues that have faced the business throughout the year: our capital structure, operational challenges, and our historic relationship with the Babcock & Brown Group."

BBP was one of collapsed investment firm Babcock & Brown Ltd's satellite funds, and as such paid management fees to B&B and also carried the debt that B&B then used to buy power assets on its own balance sheet.

BBP was able to reduce its debt to $3.2 billion by June 30, from $4.6 billion the year before, by selling some of its assets.

The company on Friday said it was continuing to negotiate its loans with its financiers, which included the banking syndicate of B&B.

BBP said the management agreement with B&B, had not been terminated at this stage, but none of the BBP's board members came from B&B and all staff had been employed directly by BBP since January.

B&B went into receivership on August 24, 2008

BBP says it expects to provide further clarity about its capital structure and relationship with B&B at, or before, its annual general meeting on November 30.

BBP reported that revenue from ordinary activities increased by 0.44 per cent to $1.53 billion.

Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $262 million, at the lower end of the recent guidance range, from $342 million the year before.

The company said that EBITDA had been affected by weak wholesale energy prices across Australia, as well as a number of outages.

BBP stapled securities added 1.1 cents, or 16 per cent to close at eight cents.






 

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