Interesting quarter.YTD own production up 11% and revenues up...

Interesting quarter.

YTD own production up 11% and revenues up 14%. While merchant sale prices are set to go lower, IFN gestures to only 18% of generation to be sold in this channel, with the majority 82% on fixed price contracts at higher prices.

'Recalibrating' the desired 600-700Mw of further renewable PPAs is likely spin. Who would want to enter a contract at current prices and uncertainty levels?

Deferring Flyers Creek FID is imposed by CV-19 variables. An equal barrier is the planning application with the NSW government (Planning Application Four) to increase height and turbine size on this 38 turbine 145Mw project. With $140m in cash and solid cash inflows, IFN can certainly afford to build it on-balance sheet if it wants to.

Leaving the SA turbines on diesel another year is also an eyebrow raiser. With oil prices very low and likely to stay that way for some time, this isnt as silly as it sounds. Deferring the capex won't hurt.

We don't know if IFN is interested in the second-hand WFs up for sale. This dimension adds further options, which may or may not be better value.

Still no sign of more batteries...

Ash