Ann: QUARTER: TPW: TrustPower First Quarter Resul

• Release Date: 03/08/12 16:30
• Summary: QUARTER: TPW: TrustPower First Quarter Results Announcment
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TPW
03/08/2012 14:30
QUARTER

REL: 1430 HRS TrustPower Limited

QUARTER: TPW: TrustPower First Quarter Results Announcment

Market Announcement
Friday, 3 August 2012

TrustPower Limited First Quarter Operating Results for the Three Months Ended
30 June 2012
TrustPower's operating statistics for the quarter ended 30 June 2012 together
with prior period comparatives are provided at the end of this announcement.
The first quarter of the 2013 financial year has seen higher than average
wholesale electricity prices due to below average hydro storage levels and
inflows across the country.
TrustPower's New Zealand generation production was 604GWh in the first
quarter, 14 per cent below same period last year but less than 2 per cent
below expected long term average production, reflecting very strong hydro
production in prior period.  Wind production for the quarter at the Tararua
and Mahinerangi wind farms was in line with prior period.
New Zealand hydro storage levels have improved during July and wholesale
electricity prices have fallen as a result.
The Snowtown Stage 1 Wind Farm produced 89GWh during the first quarter which
was 6 per cent up on prior period and slightly above long term expectation.
Mass market customer sales were down 5 per cent for the first quarter
compared to prior period predominantly due to lower customer numbers.  Time
of Use sales were down 30GWh (5 per cent) on prior period.  However,
TrustPower sold 35GWh more volume through the ASX during the quarter than
prior period as this was determined to be the best product placement channel
given high wholesale electricity prices.  Mass market competition remains
strong although a moderation in customer churn has been experienced during
the quarter with customer numbers reducing by 1,000 since 31 March 2012.
The 3.8MW hydro project at Esk Valley in the Hawkes Bay is progressing well
towards target commissioning in June 2013.  The decision to proceed with the
2.6MW residual flow project at the existing Arnold hydro scheme has been
delayed as project economics remain under review.
Announcements in relation to financial close of the 270MW Snowtown Stage 2
development were made last week.  Notice to proceed under the Engineering,
Procurement and Construction Contract with Siemens Ltd has been issued by
TrustPower during this week and funding arrangements are in the process of
being signed.
A simplified disclosure prospectus for an offer of 7 year unsecured
subordinated bonds has been registered.  The indicative interest rate for the
offer is 6.75 - 7.0% with a final interest rate (which may be outside this
indicative rate range) to be determined and announced by TrustPower through
NZX on or prior to the offer opening date, following a book build process
with market participants.  Proceeds from the offer will be utilised to
refinance an existing subordinated bond maturing on 14 September 2012 and for
general corporate purposes.
While it is too early to make predictions with respect to TrustPower's full
year trading result the Directors are satisfied with the Company's
year-to-date trading performance.

BJ HARKER
CHAIRMAN

    3 Months 3 Months 12 Months
Operating Statistics   June 2012 June 2011 March 2012
Electricity customer numbers (000's)   208  220
   209
Telecommunication services provided (000's)   38  35
    38

Mass market sales (GWh)      432     455   1,761
Time of use sales (GWh)      541     571   2,199
Total customer sales (GWh)        973    1,026    3,960
Average spot price of electricity purchased ($/MWh)  127
  45     78

North Island hydro generation production (GWh)     182    277
      922
South Island hydro generation production (GWh)     266    271
   1,012
Total hydro generation production (GWh)      448     548
   1,933
North Island wind generation production (GWh)    131   133
     548
South Island wind generation production (GWh)     25    24
     100
Total wind generation production (GWh)     156    157
     648
Total New Zealand generation production (GWh)    604   705
  2,582
Average spot price of electricity generated ($/MWh)  135
  42     72

Australian wind generation production (GWh)   89   84    376

Resource consent non-compliance events       4        4        10
Staff numbers (full time equivalents)    463   439
    458
End CA:00225631 For:TPW    Type:QUARTER    Time:2012-08-03 14:30:33