Horizon Energy says non-cash gains on its hedging contracts pushed its first half net profit up more than 67% but earnings from its core electricity distribution business were down 28%.
The Whakatane-based electricity lines company's net profit for the six months to September rose to $4.2 million from $2.6 million in the same period last year.
But excluding gains and losses on its hedging contracts, profit fell to $2.3 million from $3.2 million.
Horizon chairman Rob Tait says this was due to pricing changes imposed on the company by the Commerce Commission, lower energy consumption by its customers because of the mild winter and to higher maintenance costs.
Mr Tait says Horizon is expecting a full-year net profit of about $6 million. That compares with just under $2 million last year.