TPC Consolidated Limited reported a robust 20.9% increase in revenue to $193.1 million for FY25, driven by growth in electricity and gas services. However, net profit after tax plunged 94.4% to $0.3 million, reflecting the impact of volatile wholesale electricity prices and rising costs, while a proposed acquisition awaits regulatory approval.
- Revenue growth of 20.9% to $193.1 million
- Underlying EBITDA down 63.4% to $3.7 million
- Net profit after tax plunges 94.4% to $0.3 million
- No final dividend declared for FY25
- Acquisition by Wollar Solar Holding pending FIRB approval
Strong Revenue Growth Amid Challenging Market
TPC Consolidated Limited has delivered a notable 20.9% increase in revenue for the financial year ended 30 June 2025, reaching $193.1 million. This growth was primarily driven by a 24.8% surge in electricity services and a 14.7% rise in gas services, reflecting the expanding footprint of its core energy retail business, CovaU.
Despite this top-line momentum, the company’s profitability metrics tell a more cautious story. Underlying EBITDA fell sharply by 63.4% to $3.7 million, while net profit after tax (NPAT) plummeted 94.4% to just $0.3 million. The steep decline in earnings was largely attributed to extreme volatility in wholesale electricity prices, which created significant cost pressures that outpaced revenue gains.
Market Volatility and Operational Challenges
The FY25 period was marked by unprecedented swings in wholesale electricity prices across Australia’s National Electricity Market, including spikes reaching nearly $17,000 per megawatt-hour during critical outages and weather events. These conditions strained all retail energy providers, including TPC Consolidated, despite the company’s strategic hedging and power purchase agreements designed to mitigate such risks.
Operating expenses rose 11% to $27.1 million, driven by increased expected credit losses, bank and merchant fees, and contractor costs. The company’s efficiency ratio improved slightly, indicating tighter cost control despite the challenging environment.
Strategic Initiatives and Future Outlook
Management remains focused on strategic resilience, with initiatives such as the planned launch of a Virtual Power Plant (VPP) service in FY26 aimed at leveraging battery storage to better manage energy volatility. Additionally, deeper penetration into the gas market, particularly in Victoria, is part of the company’s growth strategy.
Meanwhile, the proposed acquisition by Wollar Solar Holding Pty Ltd, a subsidiary of Beijing Energy International, remains pending approval from Australia’s Foreign Investment Review Board (FIRB). The acquisition is expected to position TPC Consolidated for accelerated growth by integrating renewable energy assets with its retail operations.
Balance Sheet and Dividend Decisions
The balance sheet shows increased borrowings of $9.3 million and cash and bank deposits of $24.2 million, including $17.1 million held as security for bank facilities. Net assets declined 13.1% to $29.5 million, impacted by the modest profit and negative fair value movements on derivatives.
Reflecting the subdued profitability, the Board has decided not to declare a final dividend for FY25, following a fully franked interim dividend of 20 cents per share earlier in the year.
Overall, while FY25 was a year of revenue expansion, the earnings pressure underscores the ongoing challenges in Australia’s energy retail market, particularly amid the transition to renewables and wholesale price volatility.
Bottom Line?
TPC’s FY25 results highlight the tension between growth and profitability in a volatile energy market, with the pending acquisition and new energy storage initiatives set to shape its next chapter.
Questions in the middle?
- When will the Foreign Investment Review Board approve the Wollar Solar Holding acquisition?
- How quickly will the Virtual Power Plant service contribute to earnings recovery?
- What strategies will TPC deploy to mitigate ongoing wholesale electricity price volatility?