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

 


Transpower trims interim dividend despite higher revenues

Transpower trims interim dividend as grid upgrade lifts first-half revenue

By Paul McBeth

Feb. 28 (BusinessDesk) - Transpower, the state-owned national electricity grid operator, will pay a smaller interim dividend than last year, while lifting its first-half revenue after completing its North Island grid upgrade and commissioning of the Cook Strait “Pole 3” cable project.

Transpower will pay an interim dividend of $60 million, down from $92 million a year earlier. It anticipates paying total dividends of $151 million in the 2014 financial year, lower than the $295 million it paid in 2013, according to its Statement of Corporate Intent.

Net profit more than doubled to $153.6 million, including an unrealised $75 million gain in the value of its interest rate swaps, and earnings before interest, tax, depreciation, amortisation, impairment and fair value movements (EBITDAIF) gained 14 percent to $353.5 million. Revenue rose 10 percent to $493.8 million with the North Island grid and Cook Strait cable upgrades coming on stream.

“These projects will ensure a reliable and secure supply of electricity for New Zealand and importantly, also support enhanced competition in the electricity market, which puts downward pressure on end consumer bills,” said chairman Mark Verbiest. “The last of the very large projects – the North Auckland and Northland project – will be commissioned later this summer.”

Transpower’s EBITDAIF margin was 71.6 percent in the half, tracking ahead of the 70.2 percent target in its statement of intent, and an improvement on the EBITDAIF margin of 69 percent a year earlier. The company said it expects it will be “materially in line with the financial performance targets” for the 2014 year.

“Our focus will shift from big build projects to optimising our still significant capital and operating expenditure, to ensure cost effectiveness for the end consumer while maintaining the integrity of the grid,” Verbiest said. “We will continue to develop new technology initiatives that will improve security and reliability of the grid.”

Transpower has two tranches of debt listed on the NZX. Its $200 million of bonds which mature in 2019 paying annual interest of 4.65 percent last traded at $96.228 per $100 face value, while its $325 million of debt maturing in 2018, paying annual interest of 5.14 percent last traded at $101.591 per $100 face value.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Brewing: Lion To Buy Cult Upper Hutt Brewer Panhead

Lion - Beer, Spirits and Wine (NZ), New Zealand's biggest beer maker, has agreed to buy Panhead Custom Ales from the family of founder Mike Neilson, its second such purchase of a popular craft brewer after the acquisition of Dunedin-based Emerson's Brewing Co in 2012. More>>

ALSO:

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news