Australia's largest stock trading and investment forum Australia's #1 stock forum

EPW

Click for more information

0.21%

$2.43 erm power limited

FY17 Forecast, page-3

First 3 Last

Share
Profile

Follow
PortfolioPlus

3,282 Posts.

100

26/10/16

14:34

Post #: 20137700
Share

Originally posted by leasx ↑

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.

Expand

Thanks Leasx. Care to have a stab at what eps for FY17 might be?

EPW Price at posting: $1.15 Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

There are more pages in this discussion • 4 more messages in this thread...

First 3 Last

Add EPW (ASX) to my watchlist

SPONSORED BY