TRP
27/02/2015 08:48
HALFYR
PRICE SENSITIVE
REL: 0848 HRS Transpower New Zealand Limited
HALFYR: TRP: Transpower announces 2014-15 interim result
Transpower New Zealand today released its financial results for the six
months ended 31 December 2014.
Net profit after tax, before net changes in the fair value of financial
instruments, was $107.7 million, an increase of 8% on the prior period of
$99.7 million. The result reflects the completion of our major capital build
programme. Total revenue increased by $33.1 million to $526.9 million (+6.7%)
on the prior period as newly commissioned assets are included in the revenue
base.
Operating expenses declined by 3.2% from $140.3 million in the prior period
to $135.8 million, reflecting initial gains from a number of business
improvement and efficiency initiatives being implemented across the company.
Increased revenue and lower operating costs improved EBITDAIF by 10.6% to
$391.1 million (Dec 2013: $353.5 million).
Net profit after tax including net changes in the fair value of financial
instruments declined to $73.8 million (Dec 2013: $153.6 million). The
non-cash net loss in the fair value of financial instruments was $47.0
million, compared to a gain of $75 million in the prior period, predominately
the result of movements in market interest rates. We are not in the business
of trading financial instruments, which are generally held to maturity. Fair
value movements are non-cash in nature and do not reflect the underlying
operating performance of the business.
An interim dividend of $75.2 million (December 2013: $60 million) will be
paid to the shareholder in March.
Transpower Chairman, Mark Verbiest said this period has reflected a period of
transition from delivering the large build programme which is now completed,
to being strongly focused on optimising our business as usual operations.
"The last six months has also been substantial on the regulatory front with
the Commerce Commission finalising its determinations for our second
regulatory control period (RCP2) that runs for five years from 1 April 2015."
"While we recorded a sound financial result for the first half of 2014/15,
the last quarter of this financial year will include the first downward
impact on revenue as a result of these regulatory determinations. This impact
will continue through the remainder of RCP2, until 31 March 2020," he said.
"Pending regulatory decisions could result in further revenue and dividend
downside for Transpower. These should be resolved during 2015."
Transpower's half year report will be published once it is tabled in
Parliament, which is expected to be in March 2015.
End CA:00261247 For:TRP Type:HALFYR Time:2015-02-27 08:48:52
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