Sound fundamentals point to solid annual result

TrustPower's June quarter net profit rose to $25.2 million from $24.4 million a year earlier.

The Tauranga-based company said yesterday that although the result was only 3 per cent higher than last year, the earlier period result included one off gains of $3.7 million.

Earnings before interest, tax, depreciation and amortisation (ebitda) were $53.4 million versus $52.1 million for the prior period.

The quarter was characterised by strong hydro inflow in April and volatile wholesale prices, particularly in June.

"The company has experienced unusually favourable trading conditions during the first quarter of the last two years," chairman Harold Titter said. "It is unusual to get good hydro inflows as well as above average wholesale spot prices for a prolonged period.

"While at this early stage of the financial year it is not possible to predict year end results the directors are confident that the business fundamentals are sound, which augurs well for a satisfactory annual result."

Generation rose 5 per cent during the quarter. Customer numbers were steady around 220,000 and total electricity sold fell slightly from last year.

TrustPower said its 93MW expansion of the Tararua Wind Farm was progressing to plan but a resource consent hearing for a proposed 72MW hydro generation scheme, in Marlborough, had been delayed.

TrustPower shares were unchanged at $7 yesterday.

- NZPA