Stanwell Corporation Limited (Stanwell) has delivered strong financial results in 2018/19 as a result of its diversified revenue streams, with nearly 50 per cent of its net profit from sources other than the sale of electricity.
Stanwell Chief Executive Officer Richard Van Breda said the company’s diversified revenue streams had provided significant additional dividends to Queenslanders.
“Our revenue comes from a variety of sources. We generate electricity, we have an electricity retail business, and we trade gas and coal,” Mr Van Breda said.
“In particular, we have a revenue stream known as coal rebate revenue based on coking coal exported from Curragh Mine (coking coal is used to produce steel). In 2018/19, Stanwell’s coal rebate accounted for 25 per cent of our after-tax profit.
“In 2018/19, we also signed a new agreement with Coronado Curragh Pty Ltd, locking in a long-term, low-cost fuel supply for Stanwell Power Station through to 2038. More than 20 per cent of our net profit in 2018/19 related to this deal.
“In relation to electricity revenue, approximately 85 per cent comes from contracts. These contracts provide cost certainty for our customers, which are all large scale purchasers of electricity. Only a small portion of our revenues comes from the spot market for electricity.
Stanwell’s 2018/19 Annual Report also reveals the company is one of the most reliable electricity providers in the National Electricity Market.
Stanwell’s coal, gas and hydro power stations delivered more than 19,200 GWh of electricity in 2018/19. This was 33 per cent of Queensland’s total energy demand.
Mr Van Breda said the company was proud of the strong results it delivered in 2018/19.
“By running our power stations harder, we were able to put downward pressure on wholesale electricity prices,” Mr Van Breda said.
“Improving our business and managing our costs have been important aspects of our ability to deliver strong returns to the people of Queensland.
In 2018/19, Queensland’s electricity prices were, on average, the lowest and most stable in the National Electricity Market.
Media enquiries: Ph 1800 531 877