09/12/2008 - 15:18

WA power sales lower Babcock forecast

09/12/2008 - 15:18

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Babcock & Brown Power has shaved off $20 million from its 2009 earnings guidance after taking into account its soon-to-be sold interests in two Western Australian power stations.

WA power sales lower Babcock forecast

Babcock & Brown Power has shaved off $20 million from its 2009 earnings guidance after taking into account its soon-to-be sold interests in two Western Australian power stations.

In a brief statement, the company said it expected its 2009 financial year earnings before interest, tax, depreciation and amortisation to be in the range of $330-340 million.

Previous guidance was pegged at between $350-360 million.

BBP said the difference in earning was due to the contribution from its part-owned Kwinana power station.

The revised EBITDA follows news a fortnight ago that BBP had struck a deal to sell its interest in the Kwinana and Neerabup power stations for a combined $130 million to the infrastructure arm of ANZ.

BBP holds a 70 per cent interest in Kwinana and a 50 per cent interest in a proposed power station at Neerabup.

However joint venture partner ERM Power has pre-emptive rights to make an offer for BBP's interest in the power stations.

ERM has so far not announced a decision.

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