Hastings Diversified Utilities Fund (HDF) reported a net loss of $6.9 million for the half, down from a profit of $9.4 million a year earlier. Excluding non-operating items profit grew 34% to $14.3 million.
Hastings said the poor result was due to an unrealised foreign exchange and revaluation loss of $21.2 million being charged to the income statement compared to a $1.3 million charge previously.
The loss comprised of a $29.7 million revaluation due to the Australian dollar appreciating 10.6% against the British pound over the half .
Hastings said since 30 June 2008, the Australian dollar had depreciated against the pound for an unrealised foreign exchange gain of approximately $10.8 million.
Including non-operating items, revenues from ordinary activities were $39.7 million for the half year to 30 June 2008, 37% lower.
Excluding these items, revenues were $60.8 million, down 5.7% on the previous corresponding result.
A highlight of the half was the solid operational performance from Epic Energy, with operating income by 1.8% and operating expenses falling 2.1 %.
"In line with Hastings policy, prudent hedging arrangements provided protection of cash flows to HDF against foreign exchange rate movements," the company said.
Hastings said it would pay a first half distribution of 14c, up 2.6%, adding that it has a solid capital structure providing certainty and protection against debt market volatility.
As at 1200 AEST, shares in Hastings Diversified Utilities Fund fell 2c to $2.23.