Babcock & Brown Power (BBP) reported a net loss of $426 million for the year to 30 June, from a loss of $75.6 million a year before. BBP also announced that CEO Paul Simshauser and CFO James Brown would step down.
Earnings before interest, taxation, depreciation and amortisation, nearly tripled to $325.1 million from $111.3 million a year before. The result was below guidance provided the company and consensus estimates.
Revenue rose to nearly $1.53 billion from $532.8 million.
The company said it expects FY09 EBITDA of $350 million to $360 million, taking into account the sales announced last month of its Ecogen and Uranquinty power stations, and the impact of the Varanus Island gas disruption on its Western Australia gas retail business Alinta.
In mid June, the company revised FY09 EBITDA to the lower end of the known analyst forecast range of $439 million to $528 million.
Independent chairman Len Gill said the board regretted the recent reduction in securityholder value and was committed to making the necessary changes to unlock value.
Since January the company has seen its security price fall from $2.70 to 20c.
"The board is unanimous in the need for change and has a clear plan, including the strategic review being conducted by UBS, to tackle the challenges that lie ahead," he said.
Mr Gill, who was appointed as chairman in early July said Ross Rolfe would replace Mr Simshauser today as CEO, while the current CFO James Brown would be replaced within the next three months once a new candidate was selected.
The company said two directors appointed by its manager Babcock & Brown Limited (BNB) would also be replaced, with Peter Hofbauer and Warren Murphy to step down following a restructure of their roles at Babcock & Brown.
BBP said John Bowyer would be appointed as the sole Babcock & Brown representative on the board, while the appointment of a fourth independent director was being considered.
BBP said would not pay a final distribution, compared to 14c a year ago.
At 1515 AEST, BBP was flat at 20c.