Financial results The operational assets performed well and benefited from above average wind speeds early in the year. Our financial results were lower than 2019, reflecting the removal of Snowtown 2 Wind Farm from mid-December 2019, but were ahead of expectations when normalised for that transaction. Group revenue was A$170.2m (11% down) and earnings before interest, tax, depreciation, amortisation and fair value movement of financial instruments (EBITDAF) were A$117.5m (13% down). Net profit after tax (NPAT) was A$478.4m (3,828% up) and clearly dominated by the profit above book value from the sale of Snowtown 2 Wind Farm. Net cashflow from operating activities was A$96.3m, also down on the prior year due to the reduction in operational asset base. This perhaps indicates that even with the heavy development and transaction load, the team remained appropriately focused on the performance of the operating assets. It also demonstrates the strength of our long-term asset maintenance agreements and the competency and performance of our maintenance partners. Improved Health and Safety It is pleasing to report a significant improvement in our safety performance, with a 75% reduction in Lost Time Injuries and 58% reduction in Recordable Injury Frequency Rate. These results, in light of the increased exposure due to the two large construction projects, are encouraging and demonstrate that sufficient focus does produce results. Well Positioned Strategically With our strategy remaining centred on the transition to renewables, we believe we have continued to strengthen our platform of operating assets and development options, positioning us well for further growth. Our development pipeline is greater than 3,000MW, includes wind, solar and battery options and required environmental permits are in place for more than 65% of the 3,000MW. With two large scale investments currently in construction, we are describing FY2021 as a transformative year. We are engaging with many new stakeholders as a result of these projects and we are conscious of the need to deliver on the outcomes we have promised. This is with the backdrop of ensuring the other elements of the business continue to perform. The renewables industry, and perhaps the wider electricity market, is not getting simpler to navigate and we remain focused on continually improving our recipe so that we can create attractive investment opportunities under a variety of market, regulatory and policy scenarios.
The COVID-19 pandemic has delayed progress in many areas, however the overarching sentiment remains targeted on adapting to a higher renewables penetration. Discussions on a hydrogen economy, increasing transmission build, greater domestic gas supply and Federal Government investment in pumped hydro are all encouraging, pointing to increased electricity demand, improved system resilience and expanded firming support, which will enable further renewables investment, without the need for a specific renewables support mechanism. Many of these initiatives are not quick fixes and our demonstrated and continued patience will be key to being well prepared when opportunities do present themselves. We are pleased to see the improvement in the New Zealand market, with two wind farms under construction and interest being shown in potential further capacity, if this can be supplied in the right location and at the right price. The governments in both countries are now looking to large infrastructure projects to help rebuild economies and the general consensus is that this is an opportunity, which should not be missed, to progress carbon emissions reductions. We are ready to help. Capital Return Capital management activity has been focused on the best effective use of the proceeds from the Snowtown 2 Wind Farm sale. The free cash available to the business has been assessed as greater than the funding requirements for nearer term investment opportunities and as a result a capital return to shareholders of A$260m is planned for July 2020. Unexpected investment options may present themselves and funding options for these will be explored at the time. With the company still focused on growth, operational cashflows are considered an important funding source and the Board has again decided not to pay a final dividend this year, meaning no dividends have been paid in FY2020. Thanks Without the significant effort of the Board and the Executive Leadership Team we would not have made the progress we have this year. We thank you all for your work. We also thank the wider Tilt Renewables team, who also go above and beyond to ensure we maintain our position as the leading renewables company in Australasia, supported by our landowners, communities, suppliers, banks and other service providers. We have a lot of work still to do and we will not achieve our full potential without ongoing commitment from our team.
Our development pipeline flexibility and our team agility, when matched with the support of our shareholders and key relationships with stakeholders, communities and suppliers, makes us ‘opportunity ready’. Policy Environment In Australia, a period of relative political stability has allowed the policy discussion to tend towards the technical, regulatory and market amendments required to accept more renewables into the energy mix and encourage the supply of system strength, frequency keeping and other ancillary services.
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Bruce Harker Chair
Deion Campbell Chief Executive