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

 

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>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news