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

 


Eastland Group reports another record profit in 2014

Eastland Group reports another record profit in 2014

Eastland Group Limited today announced a record audited profit of $14.9 million for the year ended 31 March 2014.

“We’re very pleased to report another strong result,” said Eastland Group chief executive Matt Todd.

“The 2014 result is a solid increase on 2013’s $12.8 million, which was a previous best. It shows while we are continuing to grow we’re maintaining profitability within our existing businesses. The group’s portfolio is comprised of three business sectors: an electricity distribution business, an electricity generation business, and a logistics business which includes an international seaport and a domestic airport. These businesses combined to give Eastland Group a total income of $71.0 million in 2014.”

Fully imputed dividends paid to Eastland Group’s sole shareholder, Eastland Community Trust, were $4.8 million, up from $4.6 million the previous year, continuing a trend of increasing dividends over the past seven years. Eastland Group also paid the shareholder interest on capital notes of $2.6 million.

The record result was due to strong operating profit (earnings before interest and tax) from each of these three sectors – electricity distribution $8.3 million, electricity generation $4.8 million and logistics (port and airport) $15.4 million.

Increased activity at Eastland Port was a key driver for the year on year improvement, added Mr Todd. A record breaking 2.3 million tonnes was exported through the port in the year ended 31 March 2014.

Eastland Network, which provides electricity distribution services to the 54,000 population base across the Gisborne and Wairoa districts, was also a key contributor. Total energy distributed was 300 GWhrs, down 2.1 percent on the previous year’s total of 306 GWhrs, reflecting a warm winter and consumers being more energy efficient.

“In a highly regulated and ‘no growth’ market, the network business continued to focus on the efficient operation of an electricity lines business covering an area of more than 10,000km2.”

Efficiency was also the focus for the company’s electricity generation business, said Mr Todd.

“Our geothermal plant in Kawerau achieved an availability of 97.9 percent and was part of a generation portfolio that produced 77.1GWhrs for the year.”

Mr Todd said the company invested $22.4 million during the year on development of its assets, up from $14.9 million the previous year. “The fact that $18.2 million of this was spent within Tairawhiti demonstrates our strong commitment to the local economy, even as we continue to pursue opportunities outside the region.”

The growing requirements of the forestry industry meant $11.5 million was spent on Eastland Port, and the district’s need for a reliable electricity supply meant that a further $5.4 million was spent on Eastland Network.

“Over the next five years we intend to spend a further $260.6 million on investments to support our strategic objectives. Eastland Group is committed to the efficient operation and development of the Tairawhiti region’s asset infrastructure. Our strategy is to enhance our asset base in order to create greater economic value in future, and to look for tangible ways to enhance our customers’ businesses.”

At 31 March 2014, the company’s total assets were valued at $365.5 million, with 87 percent of this currently invested in the Gisborne and Wairoa districts. Equity was $186.4 million, up from $181.0 million in 2013.

Eastland Community Trust chair, Richard Brooking, said Eastland Group’s performance was integral to the financial success of the Trust.

“The Group has paid an increased dividend of $4.8 million to ECT this year, up from $4.6 million the previous year, as well as $2.6 million interest on the capital notes held by ECT. This will eventually benefit the entire community in the form of investments and distributions by the Trust,” said Mr Brooking.

“We congratulate chairman Nelson Cull, the directors, chief executive Matt Todd and the entire Eastland Group team for the excellent results achieved in the 2014 financial year.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

f work for Pumpkin Patch staff

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news