12/02/2018 - 14:47

Zenith up on promising guidance

12/02/2018 - 14:47

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Shares in remote power provider Zenith Energy were up 7 per cent today as the company announced an unaudited before tax profit of up to $11 million for the first half of the financial year.

Zenith Energy managing director Hamish Moffat (left) and chairman Doug Walker. Photo: Attila Csaszar

Shares in remote power provider Zenith Energy were up 7 per cent today as the company announced an unaudited before tax profit of up to $11 million for the first half of the financial year.

Zenith listed on the ASX in May, with its prospectus at that time predicting revenue of around $35 million for the 2018 financial year.

Profit was projected to be $5 million for the year.

The company appears set to exceed this guidance, with revenue for the first six months of the year of around $33 million (unaudited).

“These solid results arose from a strong operating performance during the period, as well as revenues from new contracts previously disclosed to the market, and (engineering, procurement and construction) contracts that Zenith has delivered since the commencement of the financial year,” the company said in a release today.

Zenith secured a number of contracts in the six months to December.

One was a power purchase agreement with Gascoyne Resources, for a 15-megawatt gas fired generator at the Dalgaranga gold project, signed in December

Another was a power purchase agreement with Dacian Gold for a 17MW generator at the Mt Morgan’s project.

Shares in Zenith were trading at 75 cents each at the time of writing.

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