State-owned monopoly Transpower, operator of the national electricity grid, has reported an 18 percent drop in full-year profit, reflecting higher depreciation and interest costs following completion of major grid upgrades.
Net profit was $216 million in the year ended June 30, on revenue that rose 9 percent to $1 billion, reflecting higher charges the company can now make on its enhanced network.
A final dividend of $91 million, down 34 percent on the previous year, when a $65.7 million special dividend was also paid, has been declared, taking the total value of distributions to its taxpayer owners to $165 million, payable next month.
Operating costs fell in the year under review from $295 million to $287 million and earnings before interest, tax, depreciation, amortisation and changes in the value of financial instruments was up $94 million to $717 million. However, net finance expenses reflecting debt taken on for the grid upgrades, rose to $209 million from $142 million the previous year, and depreciation, amortisation, impairments and write-offs fros from $205 million to $251 million.
The company had performed to a "satisfactory standard" in the year under review, said chairman Mark Verbiest, and now commissioned "the last of the major transmissions projects" and is now focussing on finding ways to run the grid more efficiently.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Three fintech start-ups pitch for funds at end of Kiwibank-sponsored accelerator
- Lindsay makes first investment since selling Sistema
- NZ POLITICS DAILY: The unaccountability of elites
- Budget lock-up blunder not to be repeated, PM and Treasury assure
- Series: Business leaders’ Budget 2017 wish lists – Paul Glass
Most listened to
- Business leaders on Budget 2017: Failure to set up any significant public-private partnerships for infrastructure is "really disappointing," says Paul Glass
- Serko’s Darrin Grafton says the company can use its SME platform to expand globally
- Trump travels overseas selling jobs as North Korea continues to lash out, on Trump’s Beltway with Nathan Smith
- Nick Shewring says co-working attracts "awesome people doing cool things"
- NBR Radio: best of the week ended May 19, with Grant Walker