Tax changes distort our figures: Energy Development

Energy Development chairman Mr Richard Denton has made a plea to analysts and shareholders alike to focus their attention on before tax comparisons.

In gas-to-energy projects, profit before tax increased by 28 per cent, however, "such has been the tax changes of recent times that they render after tax comparisons in a number of cases down right misleading," he said. "The effect of the move to 30 per cent company tax rate when applied to provisions for future tax can convert an operating profit to a loss or vice versa."

Mr Denton said after eliminating this effect the company's profit after tax increased by 35% to around $19 million, which included an abnormal contribution of $3.6 million due to tax rate changes. Generating capacity owned by the group at 30 June 2001 was a net 329MW, a 36 MW increase over the previous year, according to the company.

As for SWERF, the company said the current favourable conditions for green energy presents it with numerous opportunities. It said the global market has acknowledged the potential of SWERF due to the company's work this year.

This includes the signing of a waste contract to process council waste through a SWERF plant within the City of Gosnells, though the project has been delayed as an environmental review gets underway.

In addition, the company said it has won two major UK contracts including a SWERF plant in the city of Derby, as well as a tender win from Kent City Council in the UK to process 100,000 tonnes of household waste per year.