Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

TrustPower 1H profit creeps up as customers fall

TrustPower 1H profit creeps up as fewer retail customers pay more

Oct. 31 (BusinessDesk) - TrustPower, the utility controlled by Infratil, increased first-half profit as it managed to squeeze more from a dwindling customer base in an increasingly competitive market.

Underlying profit, which strips out one-off impairment charges and changes in the fair value of assets, rose to $76.2 million in the six months ended Sept. 30 from $75.6 million in the same period a year earlier, the Tauranga-based company said in a statement. Net profit rose to $69.8 million, or 22.2 cents per share, from $68.8 million, or 21.8 cents, a year earlier.

Revenue rose 2.8 percent to $438.7 million, with retail sales rising 1.8 percent to $398.7 million. That came even as TrustPower shed 12,000 customers from a year earlier, with 206,000. TrustPower sold 1,986 gigawatt hours in the period, down from 2,137 GWh a year earlier.

"Retail competition remained intense during the period with customer switching continuing albeit some reduction in customer churn has been experienced toward the end of the period," the company said.

The board declared a full-imputed interim dividend of 20 cents per share, payable on Dec. 14. The stock rose 0.5 percent to $8.50.

Earnings before interest, tax, depreciation, amortisation and fair value movements rose 2.8 percent to $166.1 million, mainly on trading gains from placement of generation to high priced periods as well as the sale of electricity forward contracts through ASX when wholesale prices were firm, the company said.

New Zealand production fell 9 percent to 1,292 Gwh due to lower hydro and wind production and is consistent with the expected long-term average, it said.

The average spot price of electricity generated was $97 per megawatt hours, up from $61 a year earlier.

In a separate statement, TrustPower warned bondholders it had been approached by a party seeking a copy of its bond register, which may lead to a low-ball bid being offered for the securities.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

"Broad-Based Growth": GDP Rises 1 Percent In June Quarter

Gross domestic product (GDP) rose 1.0 percent in the June 2018 quarter, up from 0.5 percent last quarter, Stats NZ said today. This is the largest quarterly rise in two years. More>>

ALSO:

Judicial Review: China Steel Tarrif Rethink Ordered

On 5 July 2017 the Minister determined not to impose duties on Chinese galvanised steel coil imports. NZ Steel applied for judicial review of the Minister’s decision. More>>

Debt: NZ Banks Accelerate Lending In June Quarter

New Zealand's nine major lenders boosted lending at the fastest quarterly pace in almost two years as fears over bad debts subsided. More>>

ALSO:

Balance Of Trade: Annual Current Account Deficit Widens To $9.5 Billion

New Zealand’s current account deficit for the year ended June 2018 widened to $9.5 billion, 3.3 percent of GDP, Stats NZ said today. More>>

ALSO: