NWF - NZ Windfarms

[BlackPeter]

https://nzx.com/companies/NWF/announcements/291773

A bit too much upheaval for my liking.
What do you guys make of this?

I guess a CEO resignation without notice and without "Thank You" does not sound like a resounding vote of confidence. However - without any additional information difficult to make sense out of this information.

Obviously - the old guard (including Simon and now Chris) clearly destroyed a huge amount of share holder value and it always felt that Vector basically controlled NWF without owning a majority stake (and clearly without visible advantage to other share holders).

So what could it all mean (all hypothetical scenarios)?

(1) Rats leaving the sinking ship: The people in the know expect a bad outcome of the ongoing consent approval process ... and don't want their names tarnished by association. Hope this is not the case, but we probably can't discount this scenario;

(2) Some of the new big share holders might have discovered evidence that the association between Vector and NWF was much closer than "arms length" - and are now "silently" clearing the deck

(3) Vector wants to take over and removing everything looking like direct influence on the NWF board (though not clear why this would require a resignation without notice from the CEO - an Ex VCT man);

(4) Board and CEO disagreeing about the outcome of the recent company review (aren't we still owed an update on the outcome?) and Chris leaving under protest;

(5) Chris thinks that he did an amazing job at NWF but didn't got enough love and support out of the new board. Throwing the towel;

(6) Both events have nothing to do with each other and Chris is resigning for innocent reasons like health or family ... only thing I am wondering ... if this is the case - why don't they say so?

Whatever it is - I think the communication from the board could be better. Interesting to note that none (*) of the remaining directors has ever been elected by NWF share holders (if you can call it an election if many share holders just give the chair a blank cheque with their vote - proxies) ... our board system is clearly lacking and it probably will be again share holders who are paying the bill for that.

Next AGM will be interesting but might be a sad event for shareholders.

Discl: Holding, but didn't bother to buy this time a flight ticket to Palmerston North ... managed to somewhat reduce my holding since last year (but still holding to many);

(*) Changed from "only one" (which was clearly wrong) to "none". Thanks, crackity for pointing this out to me - you are (unfortunately) absolutely correct.

[Blue Horseshoe]

I like option "3". Maybe after Vector takeover they want Chris to run the show.

[JAYAY]

I guess a CEO resignation without notice and without "Thank You" does not sound like a resounding vote of confidence. However - without any additional information difficult to make sense out of this information.

Obviously - the old guard (including Simon and now Chris) clearly destroyed a huge amount of share holder value and it always felt that Vector basically controlled NWF without owning a majority stake (and clearly without visible advantage to other share holders).

So what could it all mean (all hypothetical scenarios)?

(1) Rats leaving the sinking ship: The people in the know expect a bad outcome of the ongoing consent approval process ... and don't want their names tarnished by association. Hope this is not the case, but we probably can't discount this scenario;

(2) Some of the new big share holders might have discovered evidence that the association between Vector and NWF was much closer than "arms length" - and are now "silently" clearing the deck

(3) Vector wants to take over and removing everything looking like direct influence on the NWF board (though not clear why this would require a resignation without notice from the CEO - an Ex VCT man);

(4) Board and CEO disagreeing about the outcome of the recent company review (aren't we still owed an update on the outcome?) and Chris leaving under protest;

(5) Chris thinks that he did an amazing job at NWF but didn't got enough love and support out of the new board. Throwing the towel;

(6) Both events have nothing to do with each other and Chris is resigning for innocent reasons like health or family ... only thing I am wondering ... if this is the case - why don't they say so?

Whatever it is - I think the communication from the board could be better. Interesting to note that only one of the remaining directors has ever been elected by NWF share holders (if you can call it an election if many share holders just give the chair a blank cheque with their vote - proxies) ... our board system is clearly lacking and it probably will be again share holders who are paying the bill for that.

Next AGM will be interesting but might be a sad event for shareholders.

Discl: Holding, but didn't bother to buy this time a flight ticket to Palmerston North ... managed to somewhat reduce my holding since last year (but still holding to many);

I am hoping it was No. 4.
The review was supposed to completed by end of August and acted on with urgency. Yet we have heard nothing.
I would also like it to be No.3.

[Dassets]

Tilt, market cap of NZ$725m, debt of A$570m, total EV circa NZ$1325m. 582Mw installed capacity with NZ at 197Mw. $ per Mw circa NZ$2.27m installed. Yes there are some other factors, ie Aust capacity and federal/state support.

But NWF $10m in bank, $20m market cap so $10m for assets. Farm operating at 43Mw installed maybe a touch better. so NZ$0.232m per Mw. Yes all the other things are known about the company but an AGM is coming up where shareholders will vote on directors. There has been a lot of change since these new directors started and it is what the company needed.

[kiora]

But NWF $10m in bank, $20m market cap so $10m for assets. Farm operating at 43Mw installed maybe a touch better. so NZ$0.232m per Mw. Yes all the other things are known about the company but an AGM is coming up where shareholders will vote on directors. There has been a lot of change since these new directors started and it is what the company needed.
(Plus an operational lease on power lines they can't get out of ?

[Jantar]

Looks like NWF are finally heeding the wishes of the shareholders. https://www.nzx.com/companies/NWF/announcements/292048

That is a saving of almost double last year's loss.

[Harvey Specter]

makes sense. They have a single customer who is a price setter. CFO/FC/Accountant/bookkeeper role could be outsourced for less than $10k using Xero. Head role pretty much needs to be an engineer to ensure those blades keep turning and electrons flowing to the GXP.

[whatsup]

Problem with Windfarms is they sell their product on the spot market and as such are a price taker instead of a price maker !

[Jantar]

Problem with Windfarms is they sell their product on the spot market and as such are a price taker instead of a price maker !

They don't really have any option other than sell at spot. But they could buy CFDs to counter the times that the wind isn't blowing, then they could sell some at commercial or even retail rates.

[Dassets]

Head role should actually match the outputs required from the role. AIR NZ used to have a focus on engineering and departure time versus planned departure time variation. It took a new board to reshape that desired executive output and make it focused on what it took the business to be successful.

With respect to the company only selling on spot, there are a load of options that should be examined and I suspect will be.

makes sense. They have a single customer who is a price setter. CFO/FC/Accountant/bookkeeper role could be outsourced for less than $10k using Xero. Head role pretty much needs to be an engineer to ensure those blades keep turning and electrons flowing to the GXP.