Pacific flags $15m impairments

Pacific Energy says it will meet its underlying earnings guidance for the 2018 financial year, but has flagged impairments totalling $14.8 million.

The company said in a statement to the ASX that it was on track to post underlying earnings before interest, taxes, depreciation and amortisation of between $43 million and $44 million.

Pacific also said it would report several one-off charges, which have been excluded from the earnings results.

The impairments include: a $9.8 million write-down of ‘idle and slow-moving assets’; $3 million associated with stamp duty on the Contract Power Group acquisition; $1.2 million in legal and due diligence costs; and an $800,000 write-down of intangibles.

The company will also report three months of results from Contract Power, but these will also be excluded from the underlying Ebitda result.

Pacific expects to release its financial year results on August 24.

Shares in Pacific fell 6.78 per cent to 55 cents each today.