EnergyAustralia confirmed it is continuing to focus on strengthening operational and financial performance following today’s announcement of an $91 million EBITDAF for the half year ended 30 June 2023.
EnergyAustralia’s financial results were announced in Hong Kong today as part of CLP’s earnings announcement for the half year ending 30 June 2023.
EnergyAustralia Managing Director Mark Collette said: “After a difficult 2022, we are focused on strengthening our operational and financial performance in order to fully unlock our participation in the clean energy transformation.
“Our first half result is an early sign that we have emerged from the 2022 energy crisis as a stronger, more resilient business.
“Better operational performance enables us to improve outcomes for our customers including reliability and affordability. And as our coal assets approach retirement starting with Yallourn in mid-2028, better financial performance enables us to accelerate the development of renewable and renewables-firming projects that will shape our future and support Australia’s clean energy transformation.”
EnergyAustralia 1H 2023 Financial Performance - Key Points
- EBITDAF of $91 million ($26 million 1H2022) with improved generation performance partially offset by higher energy costs and ongoing margin pressure from competition and an inability to fully reprice higher costs to customers.
- Improved operational reliability with Yallourn generation availability at 77% in the first half compared to 68% in the prior period.
- Easing market conditions and actions to rebalance generation and price risk saw a significant improvement in mark-to-market positions of forward electricity sale contracts reaching +$6 million as at 30 June 2023, compared to negative $726 million at 31 December 2022.
- Operating loss of $106 million reflecting higher interest costs partially offset by gains in fair value adjustments (operating loss of $1,552 million in 1H2022)
Mr Collette added: “Our improved performance in the first half has been supported by a new multi-mine agreement with Centennial to improve coal reliability at Mt Piper and investments to accelerate maintenance at Yallourn. This includes $400 million to complete major outages for each of Yallourn’s four generation units in 2023 and 2024 ahead of the station’s planned closure mid-2028.
“Improved generation availability also helps our customers with more supply supporting downward pressure on electricity price growth.
“We understand the significant impact that rising energy prices are having on our customers. We are continuing to actively support customers facing financial difficulty through our EnergyAssist program with payment plans, staying-connected guarantees, debt relief and, for small businesses, cashflow assistance initiatives. This will involve around $30 million in assistance this financial year, up around 16% compared to 2022.
“Looking ahead, our strategy of making the energy transition simple for our customers, combining behind the meter solutions into our growing flexible energy portfolio is right for Australia’s energy future.
“While the scale and complexity of the transformation presents many challenges, our customer base, our existing generation fleet and our ability to deliver firming energy projects both behind the meter and in the grid has us well positioned to accelerate our customer’s energy transition.”
Current EnergyAustralia projects and partnerships include:
- Tallawarra B: Completion of the 316 MW gas peaking generator (with hydrogen co-firing capability) is on track to support next summer’s peak demand in New South Wales.
- Wooreen: Continued planning for the 350MW grid-scale battery project in Victoria.
- Mount Piper: Completing feasibility studies for the 500MW grid-scale battery in New South Wales.
- Lake Lyell: Completing feasibility studies, the Environmental Impact Statement and communit consultation for the 335MW pumped hydro project in New South Wales.
- Growing flexible capacity and behind the meter, including new initiatives to support retail and business customers to benefit from batteries if they have existing solar.
- Kidston: Support for Genex’s 250MW pumped hydro project in Queensland expected to be completed in 2024.
- Riverina and Darlington Point: Support for Edify’s 150MW batteries in New South Wales.
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