MNW - Manawa Energy

[frostyboy]

Looked up the latest liquidations, cant see any company that would use wholesale power. Any ideas out there. Maybe a receivership, which means there is a potential to recover doubtful debt.

FY24 Annual report has trade receivables at $33m, compared to FY23 $24m
<a href="https://imgbb.com/"><img src="https://i.ibb.co/M7KzCyj/Mawana.jpg" alt="Mawana" border="0"></a>

"Manawa Energy also supplies around 600 Commercial and Industrial customers with electricity."
https://www.manawaenergy.co.nz/key-investor-information

[Toddy]

Alarm bells ringing loud across NZ as we are now well and truly in another energy crises.

Im a little scared about where this could lead our country and are unsure on how to best hedge the increasing costs.

Are there going to be any winners here. If so, who will they be?

[Toddy]

IFT has probably already instructed Manawa to put any planned capital expenditure on fancy wind farms on ice to preserve cash and keep debt levels under control.

[whatsup]

I bet this is a first for any generator in the history of N Z , so much for deregulation of the electricity in order to introduce industry efficiencies !!!!

[ronaldson]

I bet this is a first for any generator in the history of N Z , so much for deregulation of the electricity in order to introduce industry efficiencies !!!!

I suggest the current deficiencies are significantly attributable to Jacinda (gas exploration ban) and historic Tiwai Point prevarication by Rio Tinto (electricity market investment uncertainty). Combine these factors and we are where we are just now.

[Toddy]

Maybe ban electric cars for a while so that we can get the grid demand under control.

[Lego_Man]

For a single customer to be material to their earnings, would have to be a LARGE consumer of electricity.

Is the delay until Friday, to allow said entity to fulfil their continuous disclosure obligations before Manawa announce?

The first thing i thought of was Synlait or someone going under and owing Manawa money.

[Toddy]

Good point.
No rumours in the Kiwifruit Industry.
Rumours around Rockit Apples over the last couple of months. Use massive coolstorage.

[Jaa]

I suspect the downgrade will be caused more by the second item "adverse market conditions in the wholesale energy markets." than the first "recovery of a customer receivable".

Considering Manawa only have wholesale and commercial customers with demand that probably doesn't exceed their own generation this is a bit weird.

Did those whizz kids at Infratil encourage Manawa to do a bit of gambling in the electricity markets to juice profits?

[huxley]

I suspect the downgrade will be caused more by the second item "adverse market conditions in the wholesale energy markets." than the first "recovery of a customer receivable".

Considering Manawa only have wholesale and commercial customers with demand that probably doesn't exceed their own generation this is a bit weird.

Did those whizz kids at Infratil encourage Manawa to do a bit of gambling in the electricity markets to juice profits?

That’s what I was wondering, how could they lose out in this market when they are long generation!