Accounts are confusing as there are offtake agreements and various debt facilities. What matters at the end of the day is margins per MWh and the ability to withstand the changes in a fast paced market. EPW has the ability to hedge with its peaker and Vales Point which puts it in good stead to adapt to the renewable changes and increase MWh price. $3/MWh margins for Aus operations is not particularly good but that's factored into the SP. There are more margins in US, energy optimisation and some of their SME customers in Australia.
LGC prices are basically at their max price (~$90/MWh) so EPW wants to look at offering services (such as Greensense) to reduce the end user's consumption.
US won't make profit for now as a lot of the earnings have been used to upgrade their CRM (software), expand to more markets and gain more SPG customers. With current margins and customer reach profitability is close.
FY17 Forecast, page-2
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