Squadron in $220m loss as it digests CWP buy
Squadron Energy, the private renewable generation group controlled by the billionaire Forrest family, has recorded its first sales but slumped to a $220 million loss after the $4.2 billion purchase of CWP Renewables.
The company’s accounts, lodged with the Australian Securities and Investments Commission, showed Squadron recorded $84.6 million in revenues in the 12 months to June 30 – around one-third was from the sale of renewable energy certificates generated by its wind turbines.
Former CWP Renewables CEO Jason Willoughby now runs Squadron Energy for Andrew Forrest (right). Frances Andrijich
Squadron reported a $220.3 million loss, from a $45 million loss one year earlier, although the majority of expenses were related to the acquisition of CWP from Partners Group in December. Earnings before interest, tax, depreciation, amortisation and fair value movements were $41.3 million.
Jason Willoughby, Squadron’s chief executive, said the company was “perfectly placed to deliver a significant part of Australia’s renewable energy future”. “With an operating portfolio… generating substantial cashflows, we are focused on rolling out our nation-leading development pipeline,” he said.
The purchase of CWP was the biggest so far for Andrew and Nicola Forrest’s private investment vehicles. Squadron is the energy division of Tattarang, the Forrest family’s private investment company run by John Hartman, and Mr Forrest said the purchase was funded from Tattarang reserves.
“It does create Australia’s largest renewable energy company, but what we need to accept is that all major energy companies in Australia must be green,” Dr Forrest said at the time of the acquisition.
Squadron pipped offers from Spain’s Iberdrola and Tilt Renewables
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