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- Release Date: 29/02/12 10:43
- Summary: HALFYR: TRP: Transpower announces half-year results
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TRP
29/02/2012 08:43
HALFYR
REL: 0843 HRS Transpower New Zealand Limited
HALFYR: TRP: Transpower announces half-year results
Media release
29 February 2012
Transpower announces half-year results
Transpower today announced its financial results for the six months ended 31
December 2011.
The earnings before net changes in the fair value of financial instruments
and debt, was $77.1 million for the first six months of the financial year
2011/12 (December 2010: $80.4 million), a decrease of $3.3 million (4 per
cent).
Operating revenue increased by 5 per cent to $378.9 million (December 2010:
$360.1 million).
Operating expenses increased by 6 per cent to $136.5 million (December 2010:
$129.3 million). The principal increases were in maintenance expenditure on
the grid, which rose to $49.4 million (December 2010: $46.9 million).
Depreciation, amortisation and write-offs increased by 19 per cent to $90.0
million (December 2010: $75.5 million). This increase reflected the
depreciation charges from newly commissioned assets and a one-off
depreciation adjustment of $6.0 million following an independent external
review of assets lives in June 2011.
After changes in the fair value of financial instruments, Transpower recorded
a net loss of $51.5 million (December 2010: $92.3 million profit). The
changes in fair value of financial instruments predominantly result from
fluctuations in market interest rates. The fair value movements are non-cash
in nature and therefore do not reflect the underlying operating performance
of the business.
Capital expenditure was $424.0 million (December 2010: $234.0 million). The
substantial increase reflected the significant reinvestment programme
underway.
Transpower Chairman Mark Verbiest said that reinvestment was required,
following a long period of low investment.
"We are seeking to extract greater and more cost effective capacity from our
existing grid, and where possible, minimise the need to build new lines.
However, there is still a need to upgrade and maintain existing assets,
replace outdated equipment, and put in place new technology platforms to
operate the power system."
Transpower will recommence dividend payments to the Crown in March 2012. It
will pay an interim dividend of $110.0 million.
"This is our first dividend payment since the 2004/05 financial year. During
that time, the operating surplus has been reinvested into our significant
capital programme", said Mr Verbiest.
Transpower's full half year accounts will be published once they are tabled
in Parliament in March 2012.
For further information please contact:
Rebecca Wilson, Communications Manager, 04 498 2695; 021 578 608
End CA:00220151 For:TRP Type:HALFYR Time:2012-02-29 08:43:27
