King Country Energy today announced a net profit after tax of $3.45 million.  This is down $3.4 million on 2008 profits of $6.85 million.

King Country Energy’s operating surplus before interest, tax and valuation adjustments to energy derivatives was $8.52 million – up from $6.56 in 2008.

Operating cash flow was also positive, with a cash balance of $3.45 million at year end after covering  the full year dividend of $4.5 million.

King Country Energy Chairman, Brian Gurney, says, “overall, Directors are pleased with the result for the year as the company was able to consolidate its market position during a period of increased volumes of customer’s switching to other retailers as well as commercial customers confronting reduced demand for their output. 

“While NPAT is below last year, the 2008 result had included a one off gain of $1.2 million due to the change in the corporate tax rate as well as a strong upward movement in the value of our hedges because of the imminent introduction of the Government’s Emissions Trading Scheme. 

“Deferral of the Emissions Trading Scheme has seen 2008 gains reversed this year.  However, the value of the Companies derivatives was shown by the $6.0 million of cash settlements received that were used to offset very high spot electricity prices during parts of the year,” explains Mr Gurney.

The Chairman outlined that King Country Energy continues to focus on providing excellent customer service at a competitive price in order to solidify its loyal customer base. 

“Directors believe this continued business strategy will limit the company’s exposure to the economic downturn and leave it well place to take advantage of economic recovery when it occurs,” he says.

Mr Gurney said King Country Energy Ltd directors have declared a final dividend of 12 cents per share fully tax imputed.  This brings the total 2009 year payment to shareholders up to 24 cents per share.