King Country Energy reports that its bottom line annual net profit nearly halved, but operating profit rose nearly 22%.
The Taumaranui-based electricity generator and retailer, which has about 17,500 retail customers, reported a $2.2 million net profit for the 12 months to the end of March. Operating profit was $13.5 million.
Chairman Brian Gurney said the bottom line was dragged down by the company having to mark its electricity hedging contracts down to market prices.
Although operating profit was strong, he said the company is still a little disappointed.
"We were budgeting for a better number than we actually delivered in the end, and up until the end of January we were on budget but drought through February-March impacted the results."
Mr Gurney says the company is working to reduce its reliance on hedging contracts, which was why it paid $70 million to buy part of Mangahao Power Station which it did not already own from its 35% shareholder, Todd Energy.