Switched-on TrustPower makes $105m

TrustPower has attributed a 7 per cent rise in full-year net profit to its ability to capitalise on high prices in the second half of last winter and by adding thousands of new customers.

Net profit after tax was $105.1 million for the year to March 31, compared with $98.1 million for the previous year.

The country's second biggest listed generator declared a partially imputed 17c a share final dividend and an unimputed special dividend of 10c a share. Both are paid on June 8 to shareholders on the register on May 29.

TrustPower, which both generates and sells electricity, said underlying profit for the year was $118.8 million, up 28.3 per cent from $92.6 million.

Chief executive Keith Tempest said the first quarter of last year was volatile with low inflows to its hydro catchments in the South Island, low wind production and reduced interisland transmission capacity causing wholesale prices to spike.

But in the second part of winter, South Island hydro storage lakes remained low affecting competitors Contact and Meridian while TrustPower's catchments further north had good inflows and the company ran its hydro plant hard to cash in on high spot market prices.

This saw operating revenue increase 15 per cent to $785.4 million. "In a one in 100-year dry year we came through it in reasonably good nick," he said.

TrustPower boosted customer numbers to 227,000 from 222,000 a year earlier helped by fallout from Contact Energy's price rise and directors' fees debacle and a push into Northland.

Tempest said the increase in customer numbers helped compensate for reduced margins as power prices fell sharply in the last months of 2008.

The company was looking increasingly to Australia in the short term. Progress was being made for potential wind farms there.

TrustPower shares closed up 4c at $7.60 yesterday.