Alinta parent deep in red – the west australian

High costs and write-offs linked to the closure of its South Australian coal and power assets have pushed Alinta Energy’s parent deep into the red.

Alinta Holdings, itself owned by US private equity giant TPG, recorded a $359.2 million loss for the year to June 30 after $371 million of one-off charges swamped underlying earnings.

Alinta announced in June it was closing two old power stations in Port Augusta and the Leigh Creek coal mine that supplies them, blaming a power glut and growth in renewable energy. The closures will cost nearly 500 jobs, with the mine to be shut next week and the power stations to follow by March.

In accounts filed with the Australian Securities and Investments Commission, Alinta Holdings said it had booked a $261.3 million impairment on the SA assets and a $112.5 million provision to cover “close-out related costs associated with the Leigh Creek township and rail obligations, employee costs and consulting fees”. The group would fall well short of the $134 million profit in 2013-14 even without the closure charges, with reduced operating costs offset by $112 million of foreign exchange losses and a 5 per cent fall in revenue to $2.06 billion.

The financial year included the completion of the infrastructure for a long-term supply deal linking the Roy Hill mine in the Pilbara with Alinta’s Newman power station.

TPG last year briefly considered a trade sale of Alinta, WA’s biggest gas retailer, but the plan was shelved amid competition from other infrastructure assets heading to market.

The accounts reveal that loans to Alinta executives fell to $50.9 million last year after reaching $61.7 million in 2013-14. The interest-free, unsecured loans have been used to buy millions of shares, potentially handing senior management, a windfall on a float or sale of Alinta.

600k

The number of Alinta customers in WA