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verve energy - annual report
Release Date: 29 September 2006
Verve Energy has reported an initial financial loss after tax of $11.9 million for its first reporting period.
Chief Executive John Lillywhite said that while good progress had been made to establish Verve Energy as a stand-alone business, operating conditions had been difficult.
Verve Energy’s first annual report, for the three months since it was established between April and June 2006, was tabled in State Parliament by Energy Minister Fran Logan.
The loss, on revenue of $258 million, was due largely to the high liquid fuels use because of a combination of coal-burning plant being unavailable during maintenance outages, gas transport capacity curtailments in the Dampier-Bunbury Natural Gas Pipeline and insufficient contracted capacity in the pipeline.
“While cost pressures remain in the short-term, future liquid burn should be substantially less. This will be the result of Verve Energy having access to additional gas transport capacity in the DBNGP from November this year,” he said.
“The coal-burning plant maintenance program is vital to our summer readiness strategy and provides extra peaking generating capacity and improved reliability.
“We have substantially completed the transition to the new entity and there is a willingness to confront the challenges and to create a successful, open, vibrant and integrated business.”
A major maintenance review has resulted in a blueprint for changes in plant operation and maintenance, which will have positive impact for plant reliability, which is fundamental to our business earning revenue in the new wholesale electricity market, Mr Lillywhite said.
Any queries from the media are directed to Verve Energy's Corporate Relations branch.
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