Satisfactory Financial and Operational Result

Transpower Delivers Satisfactory Financial and Operational Result

Transpower Chairman Sir Colin Maiden today announced that the company had achieved a surplus after tax of $31.5 million for the six months ended 31 December 2003.

This result is $0.2 million lower than for the same six months in the previous year.

Operationally, both the HVAC and HVDC systems exceeded the availability targets set out in the Statement of Corporate Intent.

“Transpower has performed satisfactorily against both its financial and operational objectives for the six month period,” said Sir Colin.

“The national grid continues to meet the needs of Transpower’s customers and the communities they serve. Ensuring that the national grid is capable of meeting New Zealand’s future needs was a key focus for Transpower during the period, with good progress made on planning for grid enhancement.”

During the period, industry participants and other stakeholders were consulted on Transpower’s indicative proposals. Also, an investment programme of $25 million was approved to enhance the capability of the grid to meet projected demand increases until the proposed longer-term works can be completed.

Sir Colin said that the Board had decided there should be no interim dividend payment.

“It is not appropriate at this time to pay an interim dividend to the Crown, given the uncertainty around the quantity and timing of capital needed by the company to invest in major projects to upgrade the national grid.

“Directors will consider as part of the current business planning round what funding approach is most appropriate. A decision as to the final dividend for 2003/04 will be made at the end of the financial year.”

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