New Zealand Windfarms' half-year loss is being blamed on lower than average wind flows.
The listed company, which operates the Te Rere Hau wind farm near Palmerston North, says less-than-expected wind meant less power was generated.
New Zealand Windfarms made a profit of $644,00 in the six months to December 2011, but when depreciation and tax were included, it lost $1.3 million.
However, revenue from sales was up to a total of $3.8 million, compared to $1.6 million in 2010, as prices increased and the windfarm became fully operational.
The company says it cannot predict whether wind flows will pick up this year, but it expects wholesale electricity prices to average out.
New Zealand Windfarms says a review of how it can make the most of its windfarm asset will be completed by Goldman Sachs later this year.
It had previously signalled to shareholders that the best value may be achieved by merging or selling the windfarm to a company with a larger and more diversified generating portfolio.