Despite the unprecedented events of the 2021/22 financial year, Stanwell Corporation Limited’s (Stanwell’s) financial results have positioned the business well to continue investing in future energy opportunities whilst using their assets to apply downward pressure on electricity prices.
Stanwell’s underlying business performance was strong, delivering an Operating Profit of
$430.6 million in 2021/22 despite recording a decrease in Net Profit After Tax of $227 million compared to last financial year.
The decrease in Net Profit After Tax was due to high electricity prices prevailing in the contract market, and the prices Stanwell previously committed to in its contracts with wholesale electricity counterparties.
Chief Executive Officer, Michael O’Rourke, said the profitability of Stanwell’s generating business will support the ongoing investment in future energy opportunities.
“Our well-balanced trading strategy, reliable generation from our plant, and our mine and long-term coal supply contract with Coronado Curragh have contributed to our stable business performance in 2021/22,” Mr O’Rourke said.
“Over the past financial year our focus was to provide a reliable, secure, and safe supply of energy for Queenslanders and our customers while increasing our portfolio of renewable energy.
In 2021/22 global prices in thermal coal and liquid natural gas (LNG) began to rise due to low rainfall in China, leading to lower hydro-electric generation and unusually low wind in Europe lowering wind generation.
Rising prices were pushed higher again after the Russian invasion of Ukraine in February 2022, and the subsequent restrictions on exports of Russian oil, gas, and thermal coal. These factors resulted in wholesale electricity price fluctuations and unprecedented events in the National Electricity Market.
“In 2021/22, Stanwell’s high levels of generation and plant reliability helped ensure the stability of the National Electricity Market.
“Our coal-fired power stations generated as hard as they could within the confines of our coal supplies sending 18,237 GWh of energy to the market during the past the financial year.
“Between 1 January and 30 June 2022, we operated our coal-fired power stations at a high availability factor of 96.6 per cent, doing everything we could to increase supply to the market and put downward pressure on pricing.
“As daily demand patterns continue to shift, our priority will always be ensuring our portfolio meets demand and provides a secure supply of electricity for Queenslanders and our customers.”