Australia's NEXTDC halts share trading before update on data centre power delay (updated)

NEXTDC

Mon 03:51

Updates with analyst comment in paragraphs 3-4, 7
Oct 19 (Reuters) - Australia's NEXTDC NXT.AX on Monday said its shares had been placed on a trading halt pending a market update it will provide on the impact of a delay in power supply to its M3 Melbourne data centre.
The data centre operator said it expects to make an announcement within two days, adding that its board is yet to meet to assess the delay and its implications.
Analysts at Citi said that the delay likely relates to electricity distributor Jemena pausing work on electricity lines meant to deliver power to M3.
That would likely delay the billing from M3, which represents around 70 megawatts (MW) of the 155 MW of incremental billing in the state of Victoria the brokerage assumed for fiscal year 2027, it added.
NEXTDC said the trading halt would allow the company to meet its continuous disclosure obligations while it evaluates the impact of the power supply delay, including any potential effect on its fiscal 2027 financial guidance.
In August, the company forecast underlying earnings before interest, tax, depreciation and amortisation for fiscal 2027 to be between A$385 million and A$410 million ($268.27 million to $285.69 million).
Citi said that while it is likely the whole billing capacity for M3 is not impacted, the delay could put at risk around A$25 million in NEXTDC's operating earnings for fiscal 2027.
  
($1 = 1.4351 Australian dollars)

 (Reporting by Shivangi Lahiri and Nikita Maria Jino in Bengaluru; Editing by Subhranshu Sahu and Ronojoy Mazumdar)
 ((Shivangi.Lahiri@thomsonreuters.com;))