Infigen's profit drops 92% in fiscal 2019/20 due to one-off items

Infigen Energy Ltd (ASX:IFN) today reported a 92% plunge in its after-tax profit for the fiscal year through June 2020 as the bottom line was affected by higher levels of depreciation and some pre-announced one-off items.

The Australian renewable energy company posted a net profit after tax of AUD 3.5 million (USD 2.5m/EUR 2.1m) compared to AUD 40.9 million a year earlier. Net revenue was up 3%, but due to higher costs earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 1%.

More details about Infigen’s financial performance in fiscal 2019/20 can be found below.

During the 12-month period, renewable energy generation sold increased by 10% to 1,959 GWh. The top line growth, however, was limited because of lower electricity prices.

The company said that renewable sources contributed over 99% of its total generation.

In fiscal 2020/21, Infigen anticipates producing and sourcing between 2.2 TWh and 2.3 TWh of renewable energy generation to be sold via its three channels to market. It expects, though, net revenue and EBITDA to be materially lower compared to the prior financial year amid the impact of the global pandemic.

Meanwhile, the local subsidiary of Spain’s Iberdrola SA (BME:IBE) has built an ownership stake of 72.76% in Infigen through its off-market takeover offer of AUD 0.92 per share. After being extended yesterday, the bid will run through August 26.

“Given the combination of short term earnings headwinds and the significant capital requirements for delivering the growth strategy, Iberdrola’s cash offer, at a 82% premium to the 3 month VWAP [Volume-Weighted Average Price] and a 37% premium to the average analyst price target, is a compelling balance of certainty and value for Security Holders,” commented independent chairman Len Gill.

(AUD 1.0 = USD 0.718/EUR 0.605)

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