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

 

BusinessDesk: Weak Dairy Prices Prompt Pull Back In Fonterra Forecasts

Weak global dairy prices have prompted analysts to pull back their expectations for Fonterra Cooperative Group's payout to farmers for next season. More>>

Broadband Network: Spark Launches New, Competitive Ultra Fibre Plan Line-Up

Spark is giving customers an even more compelling reason to switch to its Ultra Fibre plans from today with the introduction of new competitive pricing for the majority of its plans (details below) and Fibre Landline (voice-over-fibre technology) for ... More>>

Employment: ANZ Proposes Casualisation In Whangarei Stores

ANZ workers in Whangarei could see their incomes drop by 20 to 40 percent if the bank’s proposal to reduce the number of full-time positions goes ahead says FIRST Union national organiser Tali Williams. More>>

Finance: BNZ Develops Specialist Tāmaki Māori Banking Team

BNZ develops specialist Tāmaki Māori Banking Team to support Māori as Auckland grows More>>

Pharmaceuticals: Commerce Commission To Consider Pharmaceuticals Merger

The Commerce Commission has received an application from Pfizer Inc. seeking clearance to acquire all of the shares in Hospira Inc. More>>

Real Estate: Housing Unaffordability Issues Spread

Surging house prices in Auckland and Queenstown last month pushed home ownership even further beyond the reach of first home buyers in the two districts, according to the AMP360 Home Loan Affordability Report for March. More>>

Statistics NZ: Annual Exports To China Dip Below Australia

The value of goods exports to Australia ($8.7 billion) surpassed those to China for the year ended March 2015, Statistics New Zealand said today. More>>

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news