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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news