Transpower New Zealand, owner and operator of the national power grid, will pay its first dividend in seven years even as profits fell 4 per cent in midst of a grid upgrade.
Post-tax earnings before net changes in the fair value of financial instruments and debt fell four per cent to $77.1 million for the six months ended December 31, the company said in a statement. Sales increased 5 per cent to $379 million.
The Wellington-based state-owned monopoly will pay an interim dividend of $110 million to the Crown in March, its first payment since the 2004/05 financial year, said chairman Mark Verbiest.
"During that time, the operating surplus has been reinvested into our significant capital programme," Verbiest said.
Transpower's capital spending jumped $422 million on the half a year earlier, with the company investing heavily in grid upgrades after an extended period of under-investment over the last twenty years.