TrustPower Limited Unaudited Financial Results
TrustPower Limited Unaudited Financial Results for the
Six Months Ended
30 September 2009
TrustPower's
consolidated underlying surplus after tax excluding
fair
value movements on financial instruments, which are
inherently volatile,
was $72.5 million for the six months
ended 30 September 2009. This
represents an increase of 6
per cent compared with $68.3 million for the
same period
last year.
Earnings before interest, tax, depreciation,
amortisation and fair value
movements on financial
instruments ("EBITDAF") grew by 13 per cent to
$154.9
million from $136.7 million in the previous year.
Profit
after tax attributable to the shareholders of the Company
was
$82.4 million for the half year compared with $66.8
million for the
prior period, an increase of 23%. This
includes the impact of fair
value movements on financial
instruments.
Operating revenue of $408.9 million was down
13 per cent on the previous
year due to significantly
lower electricity prices charged to those
customers
paying spot market prices. Spot electricity prices
were
significantly lower during this period as the result
of plentiful hydro
storage and inflows throughout the
winter months of 2009.
Total electricity volume sold by
the Company in New Zealand was 2,206
GWh compared with
2,253 GWh in the prior year. Customer numbers
increased
to 229,000 as at 30 September 2009 from 227,000 as at 31
March
2009.
The Company's total New Zealand generation
production of 1,055 GWh for
the first six months was down
106 GWh on the previous year, mainly
driven by lower
North Island hydro production which was down 111 GWh
on
prior year. However, given low spot electricity
prices for most of the
reporting period, TrustPower did
at times have the choice between
procuring electricity in
the spot market at low prices to meet customer
demand in
preference to running its own hydro generation
harder.
The Snowtown Wind Farm had a good second quarter
and produced 186 GWh
over the first six months which was
close to long term expectation.
Group operating cash flow
was $110.1 million for the period versus
$100.1 million
in the previous year.
Debt (including subordinated bonds)
to debt plus equity was 34 per cent
at 30 September 2009
versus 36 per cent in the previous year.
TrustPower
continues to maintain high levels of committed
credit
facilities. Including subordinated bonds the
Company currently has just
over NZD equivalent of 1
billion of committed debt funding in place. As
at 30
September 2009 Group net debt was $721.3 million.
TrustPower is currently considering making an offer of
senior bonds to
New Zealand retail investors. If the
offer proceeds, it is intended
that the bonds will be
unsecured unsubordinated bonds which would rank
equally
with TrustPower's existing bank lenders. If the offer
proceeds,
more information on the offer is expected to be
provided over the next
few weeks.
Progress continues be
made on a range of growth options in New Zealand
and
Australia.
TrustPower currently has consents for 420MW of
wind farm development in
the South Island and is well
advanced with a further 118 MW of South
Island hydro
consents at Arnold and Wairau.
In Australia, the
TrustPower Group has planning consent for up to
another
235 MW of capacity at the Snowtown Wind Farm and has
commenced
further studies in relation to a Stage II
development.
The Wairau hydro consent appeal is scheduled
to be heard in the
Environment Court next month and there
are currently four appellants
remaining in the
process.
A hearing in the Environment Court for the Arnold
hydro consent is set
down for March 2010 where there is
one appellant left in the process.
A business case is
being prepared for a 30MW first stage at the
Mahinerangi
Wind Farm which is located near TrustPower's Waipori
hydro
scheme. It is intended that existing transmission
capacity will be able
to be utilised which will assist
the economics of the project.
Progress continues to be
made in reaching agreement with landowners for
potential
wind farm developments at a number of sites in New
South
Wales, Victoria, Queensland and South
Australia.
The design phase of the customer care and
billing replacement project is
close to completion and
the detailed plan for the implementation phase
is
currently being worked through with Oracle.
The Government
has announced proposed changes to the Emissions
Trading
Scheme. If the proposal is adopted, carbon
emitters will face a 50%
obligation on their emissions
for the period 1 July 2010 to 1 January
2013 with a cap
of $25 / tonne of CO2. TrustPower sees the
introduction
of a mechanism to incorporate the pricing of
carbon as key to securing
New Zealand's renewable energy
future and that the Company's position as
a renewable
generator will be strengthened as a result.
The
submission process following the Ministerial Review of
the
electricity sector has now closed and the Government
is considering what
policy initiatives will be required.
TrustPower's submission was
broadly supportive and
TrustPower welcomes confirmation of the
Government's
commitment to a competitive electricity market.
Any
legislation changes are not expected to be enacted
until mid 2010.
The process of recruiting a new Chief
Executive is well advanced.
The Directors are pleased to
announce an interim dividend of 19 cents
per share,
partially imputed to 14 cents per share, payable 11
December
2009 (record date of 27 November 2009).
The
first half result for the 2010 financial year was pleasing.
The
Company remains well positioned to meet its
customers' needs and to
pursue further development of
renewable generation opportunities when it
is
economically justifiable.
ENDS