New Zealand Windfarms, which has pulled out of a $50 million wind farm project near Dunedin, has reported an increased first-half 2009 after-tax profit of $2.6 million for the year - doubling last year's $1.3 million profit.
Forsyth Barr broker Suzanne Kinnaird said the profit was underpinned by its $20.1 million buyout of its 50-50 Australian partner in the $80 million, 97-turbine Te Rere Hau wind farm development near Palmerston North, which it got at a discounted price, according to research by Forsyth Barr.
Ms Kinnaird said after the $20.1 million purchase price New Zealand Windfarms had recognised a $24.2 million "gain on purchase" of the Te Rere Hau site.
She said New Zealand Windfarms would have to raise additional capital before the end of the year to complete stage 4, or another proposed extension, of the Te Rere Hau project.
However, with the project nearing completion, this should not be a significant issue.
New Zealand Windfarms chief executive Steve Cross declined to comment on the likelihood of going back to the market later in the year.
Forsyth Barr maintains an "accumulate" recommendation on the stock, which is trading about 60c and valued at $1.10.
Ms Kinnaird's financial disclosure document is available on request.
