Crisis? What crisis for power retailer

By CHRIS DANIELS energy writer

TrustPower, the smallest of the big-five electricity generator-retailers, has joined its cousins in posting a healthy jump in profits.

Its unaudited, half-year results announced yesterday show that the dry autumn and national electricity savings campaign did no harm to TrustPower's bank accounts, with the Tauranga firm's profits up 60 per cent.

While the amount of power the company delivered was down 15 per cent on its expectations, sales revenue was up 12 per cent and earnings soared 45 per cent.

TrustPower is largely owned by three main shareholders: listed infrastructure investor Infratil with 35.2 per cent, the Tauranga Energy Consumer Trust with 28.6 per cent and US energy company Alliant with 23.8 per cent.

In June, AGL, which also owns 66 per cent of gas company NGC, sold its 20.5 per cent stake in TrustPower. This happened in conjunction with a share buyback and cancellation, with the company returning $151.3 million to shareholders.

Two weeks ago, the board said it would return a further $85 million through a share buyback.

While the past six months have been good for TrustPower shareholders, they have not been so rosy for the company's residential customers in Christchurch, Wellington, Auckland and Northland. TrustPower has pulled out of those markets, saying it is no longer economic to keep supplying them.

Contact Energy, the largest of the private companies in the electricity industry, will post its full-year financial results on November 14. It is also expected to do well as its thermal stations at Otahuhu and Taranaki were called upon to make up for power that would usually come from cheaper hydro stations in the South Island.