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

 


TrustPower says 2014 earnings will lag behind 2013

TrustPower says 2014 earnings will lag behind 2013 on investment spending, softer NZ market

By Tina Morrison

Nov. 11 (BusinessDesk) – TrustPower, the utility controlled by Infratil, expects earnings this year will lag behind the 2013 financial year as the power company invests more and is hurt by a soft New Zealand market.

The Tauranga-based company signalled the drop in earnings in investor briefing notes released to the stock exchange. It didn’t provide further details although estimates compiled by Reuters shows analysts expect earnings to drop to $122.1 million in the current year, from $127.3 million in 2013.

TrustPower said it is facing a challenging retail environment in New Zealand with lower customer demand and pressure on margins. The company is ramping up spending on its Snowtown wind farm in Australia which it expects to be on budget and delivered one month ahead of schedule.

Capital expenditure is expected to jump to $360 million in the 2014 financial year, including $325 million relating to the Snowtown Stage 2 construction, the company said today. That’s up from total capex of $198.6 million in 2013 and in line with analyst expectations for 2014 of $355 million, according to Reuters.

TrustPower said it is delaying a decision on whether to sell its Snowtown Stage 2 South project until the total Snowtown Stage 2 project is completed. It expects to commission the total Stage 2 by August 2014 with handover scheduled for October 2014.

The company is reviewing its options for capital raising to develop more wind generation and is likely to extend its shorter term Australian bank debt maturing in September 2014 to allow it time to make a decision.

To bolster its New Zealand retail business, TrustPower is refreshing its brand, acquiring regional rivals, using technology to improve customer experience, selling combined telecommunications and gas services and considering entering urban and retail markets, the company said today.

Shares in TrustPower added 0.2 percent to $6.63, and have shed 22 percent this year. The stock is rated a ‘buy’ according to the consensus of six analysts polled by Reuters.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news