TPC Consolidated (TPC) H1 2025 earnings summary

Executive summary

• Revenue for 1H FY25 rose 50.6% year-over-year to $99.5 million, driven by strong growth in electricity and gas services.

• Underlying EBITDA declined 38.2% to $4.0 million due to margin compression from higher wholesale energy costs.

• Net profit after tax increased 15.6% to $4.7 million compared to the same period last year.

• Interim fully franked dividend of 20.0 cents per share declared, payable 21 March 2025.

• Cash and bank deposits at period end totaled $22.3 million, up 5.9% year-over-year.

Financial highlights

• Electricity services revenue increased by $22.2 million and gas services by $12.2 million year-over-year.

• Gross profit and gain on sale of derivatives fell 5.8% to $16.8 million; gross margin dropped from 26.9% to 14.6%.

• Operating expenses and employee benefits rose 14% to $13.3 million, but the efficiency ratio improved to 13.4%.

• Net assets increased 11.5% to $37.9 million, reflecting profit after tax and a decrease in fair value of derivatives.

• Basic and diluted EPS were 41.68 cents, up from 36.04 cents year-over-year.

Outlook and guidance

• Wholesale costs for CovaU expected to rise in 2H FY25 as lower-cost hedges expire and spot prices increase.

• Strategic focus on resuming sales growth and expanding customer base in the second half.

• Company remains confident in its ability to deliver consistent returns despite sector volatility.