National grid operator Transpower has reported a profit of $142.4 million for the 2010 fiscal year, up $6.6 million on last year's results.The surplus, reported after tax and before net changes in fair value, was driven by boosted transmission revenue and
National grid operator Transpower has reported a profit of $142.4 million for the 2010 fiscal year, up $6.6 million on last year’s results.
The surplus, reported after tax and before net changes in fair value, was driven by boosted transmission revenue and remaining cross border lease income accounted for in advance.
These gains were offset by increased cost impairment of the North Island grid upgrade property bought by Transpower.
In a release today, the state-owned enterprise attributed the increase in transmission revenue to the commissioning of new investments in the grid, such as the Drury switching station and the second Otahuhu substation as well as the refurbishment and replacement of existing assets.
Chairman Wayne Brown said the focus over the past year has been on delivering projects under the $3.8 billion investment programme to secure the national grid.
"Our three major projects – the North Island Grid Upgrade Project, the HVDC Pole 3 project and the North Auckland and Northland project – are now in construction at a cost of nearly $2 billion," he said.
“Over the last year, we also secured approvals for six new projects estimated to cost over $350 million, in addition to the $203 million we spent on replacement and refurbishment."
Given the need to fund the extensive capital works programme, no dividend will be paid to the government this year.
Dividend payments are expected to start again in 2012/13.
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