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

 

MetService FY profit drops on delays in inking MoT contract

MetService 2015 profit slumps on delays in inking new MoT contract

By Tina Morrison

Sept. 2 (BusinessDesk) - Meteorological Service of New Zealand, the state-owned weather bureau, said 2015 annual profit dropped by almost two thirds because of delays in finalising a new deal with the Ministry of Transport, its largest contract.

The Wellington-based company's net profit slumped to $910,000 in the 12 months ended June 30, from $2.6 million a year earlier, as revenue was little changed at $46 million from $45.7 million. Excluding the MoT contract, annual commercial revenue increased 7.2 percent, it said

The MoT's $18.6 million annual contract for New Zealand public good weather warning and forecast services, which also extends beyond New Zealand boundaries down to the Ross Sea ice shelf and up to the Pacific Islands, expired on June 30, 2013. Pending agreement on a new deal, the contract was topped up in the 2014 year by an extra $1.4 million, but not in the 2015 year.

A new MoT contract, for an additional $15.9 million over the next four years, wasn't inked until the start of the new financial year on July 1. Some of the extra funds are earmarked for an updated meteorological forecasting system and a new off-site data back-up in Auckland. The new contract means MetService will increase its MoT funding by $2.6 million to $21.2 million in 2016, with an extra $3.3 million slated for 2017, $4.7 million in 2018 and $5.19 million in 2019, according to government Budget documents.

MetService wants to reduce reliance on the MoT contract to provide public weather forecasts and warnings by winning more sales outside New Zealand. To enable investment in international growth markets, the company has said it will pay partial dividends in the 2015 and 2016 financial years, and step up the payment in its 2017 year.

It didn't specify a final dividend in its latest earnings announcement, although it has previously forecast a payout ratio of 10 percent in 2015, 9.8 percent in 2016, and 22 percent in 2017. Its policy is to distribute 35 percent of operating cash flow as dividends.

The company said its expenses rose 7.9 percent in the year through June, reflecting investment in growth opportunities, as well as depreciation and the need to maintain key services for New Zealand public safety.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Energy Resources Aotearoa: New Law On Decommissioning Could Be Costly Overkill
A new law on decommissioning oil and gas fields passed by Parliament today has good intentions but is overkill, according to Energy Resources Aotearoa. "We strongly support operators taking responsibility and paying the costs for decommissioning, which is what all good operators do," says chief executive John Carnegie... More>>


Commerce Commission: News Publishers’ Association Seeks Authorisation To Engage In Collective Bargaining

News Publishers’ Association of New Zealand Incorporated seeks authorisation and provisional authorisation to engage in collective bargaining with Facebook and Google. The Commerce Commission has received applications from News Publishers’ Association of New Zealand Incorporated (NPA) seeking authorisation and provisional authorisation on behalf of itself... More>>


Reserve Bank: MPC Continues To Reduce Monetary Stimulus
The Monetary Policy Committee agreed to raise the Official Cash Rate (OCR) to 0.75 per cent. The Committee agreed it remains appropriate to continue reducing monetary stimulus so as to maintain price stability and support maximum sustainable employment... More>>

PriceSpy: Producer Prices Increase
New Black Friday and Covid-19 Report* released by PriceSpy says people’s fear of stepping inside physical shops during big sales events like Black Friday has risen since last year; Kiwis are still planning to shop, but more than ever will do it online this year... More>>

NZ Skeptics Society: Announce Their 2021 Awards, And Dr Simon Thornley Wins The Bent Spoon

Every year the New Zealand Skeptics presents its awards to people and organisations who have impressed us or dismayed us, and this year it’s been hard to pick our winners because there have been so many choices!.. More>>



REINZ: Sales Volumes Leveling Out

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 44 fewer lifestyle property sales (-2.6%) for the three months ended October 2021 than for the three months ended September 2021... More>>


BNZ: Auckland Retail Card Spending Bounces Back In Step Two
Bank of New Zealand (BNZ) card spending data released today shows one week of retail therapy at Alert Level 3 Step 2 has been enough to raise card spending in Auckland to levels greater than before the Delta lockdown... More>>