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


Transpower posts drop in full-year profit after big upgrades

Transpower posts drop in full-year profit after big upgrades

By Pattrick Smellie

Aug. 14 (BusinessDesk) - State-owned monopoly Transpower, operator of the national electricity grid, has reported an 18 percent drop in full-year profit, reflecting higher depreciation and interest costs following completion of major grid upgrades.

Net profit was $216 million in the year ended June 30, on revenue that rose 9 percent to $1 billion, reflecting higher charges the company can now make on its enhanced network.

A final dividend of $91 million, down 34 percent on the previous year, when a $65.7 million special dividend was also paid, has been declared, taking the total value of distributions to its taxpayer owners to $165 million, payable next month.

Operating costs fell in the year under review from $295 million to $287 million and earnings before interest, tax, depreciation, amortisation and changes in the value of financial instruments was up $94 million to $717 million.

However, net finance expenses reflecting debt taken on for the grid upgrades, rose to $209 million from $142 million the previous year, and depreciation, amortisation, impairments and write-offs from $205 million to $251 million.

The company had performed to a "satisfactory standard" in the year under review, said chairman Mark Verbiest, and now commissioned "the last of the major transmissions projects" and is now focussing on finding ways to run the grid more efficiently.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news