Stanwell Corporation Limited’s (Stanwell’s) 2019/20 financial results reflect a challenging year, navigating both the COVID-19 pandemic and the rapid and uncertain changes in the Australian energy markets.
Despite it being a turbulent year, Stanwell’s generation portfolio achieved an average availability of 88.8 per cent (against average availability of 87.7 per cent in 2018/19).
Stanwell Chief Executive Officer Richard Van Breda said despite the challenges, Stanwell responded well, ensuring the continuous supply of reliable and affordable energy to Queensland.
“Our priorities throughout the pandemic response were to ensure the safety and wellbeing of our people and their families; the continuing supply of electricity to the National Electricity Market; and to assist the communities in which we operate where we can,” Mr Van Breda said.
“I am incredibly proud of the way our people remained safe, while playing a critical role in keeping the lights on for Queenslanders.
“In the 2019/20 financial year, we made important progress in advancing our strategic priorities and further improving the safety and reliability of our assets, all while keeping energy prices affordable.”
Decreasing energy demand and surplus energy supply, along with the impacts from the COVID-19 pandemic presented serious challenges to our business and are the main contributors to a decline in our financial performance for the year.
Stanwell has recorded a Net Loss After Tax (NLAT) of $240.3 million for the 2019/20 financial year. It will pay a dividend of $231.0 million to its shareholder, the Queensland Government.
Mr Van Breda said the rapidly evolving energy market and the effect of the COVID-19 pandemic on the longer-term global economic outlook, impacted the future value of Stanwell’s sites, resulting in an asset write-down of $719.6 million, which was the main reason for the reported net loss after taxation.
“While the national average price of electricity has declined, Stanwell’s 2019/20 financial result was insulated by our strong contract portfolio and other sources of income such as coal sharing revenue agreements and the delivery of ancillary energy services which ensure grid stability and security for the National Electricity Market,” he said.
In 2019/20, Queensland’s electricity prices were, on average, the lowest and most stable in the National Electricity Market.
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