Varanus impacts B&B Power H1 earnings

Alinta owner Babcock & Brown Power has revealed an $18 million hit from the Varanus Island gas explosion as earnings for the half year dipped 9 per cent.

In its interim report released today, BBP reported earnings before interest, tax, depreciation and amortisation of $139.5 million, down from the previous corresponding period's $153.7 million.

The company has two major divisions; power generation, which includes gas and coal fired power generation assets, and energy markets that include the sale of natural gas and electricity to retail, industrial and commercial customers and WA's AlintaAGL.

Both divisions produced mixed results.

EBITDA for energy markets rose from $42.4 million to $73.2 million but took an $18 million earnings hit, net of $10 million in insurance receipts, from the Varanus Island gas explosion.

Power generation reported a fall in EBITDA from $120.7 million to $73.6 million as a result of "soft" pool prices experienced over the reporting period.

During the six months to the end of December 2008, BBP repaid $537.9 million in external debt and had net cash from operating activities of $65.1 million.

Net profit after tax slumped from the previous year's $90 million to $19 million.

Yesterday the company revised down its full year EBITDA forecast to between $315-325 million.