Wind farm operator Infigen Energy has suffered a share price plunge after warning poor wind conditions, including the group's two worst production months on record, are expected to cut full year earnings by around seven per cent.
Infigen says poor fourth quarter wind conditions to date and continuing weakness in the remainder of the period have reduced its forecast underlying earnings to $136 million to $138 million, down from the $147 million flagged in April.
The company, which operates wind farms in New South Wales, South Australia and Western Australia, said the last three months of 2016/17 would be its worst for energy production since establishing its current asset portfolio in 2012.
In a statement to the ASX on Friday, Infigen said guidance given in April was based on past production and analysis of weather forecasts
"Infigen had expected its east coast wind farms to benefit from weather patterns that typically result in high wind speeds and solid production in the second half of June," the company said.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
"These customary seasonal weather patterns have passed to the south of mainland Australia, resulting in below average wind conditions at Infigen's wind farms in South Australia and New South Wales."
Production at Infigen's Alinta wind farm in WA was higher than the previous corresponding quarter.
The company will report its full year results on August 24.
Shares in Infigen were down four cents, or five per cent, to 74 cents at 1417 AEST.
Infigen shares have been falling since April, when the company announced a $151 million entitlement offer, and are now at their lowest level since October.
