11 Feb 2013

Profit forecast downgraded its by nearly $1m

12:21 pm on 11 February 2013

Horizon Energy Distribution has downgraded its full year profit forecast by nearly $1 million due to expected losses of one of its businesses and setting money aside for price regulation.

The lines company has lowered its profit expectation from $4.3 million to $3.4 million for the year to March. Last year, Horizon Energy made $6.4 million.

The company blames the reduction to forecast losses on Aquaheat, a construction services arm acquired recently.

But it warns the downgrade does not include the financial impact of Mainzeal being put into receivership. Mainzeal owes Aquaheat money.

Horizon Energy said it does not know what effect Mainzeal's collapse will have on its earnings just yet.

It also said additional transmission costs, and the provision made for the reduction in prices it can charge customers as required by the Commerce Commission, have contributed to the downgrade.