TrustPower meets guidance as full-year profit slides

File photo

TrustPower, the electricity company controlled by Infratil, posted a 6 per cent decline in full-year profit on the back of little changed revenue, meeting guidance in what it called a "very competitive" retail environment.

Profit fell to $112.4 million in the 12 months ended March 31, from $119.4 million a year earlier, the company said in a statement today.

Operating revenue rose 1 per cent to $766.2 million.

TrustPower said the previous year's results were boosted by a one-time gain of $12.4million for fair value gains on financial instruments.

Excluding one-time items, underlying earnings were little changed at $116.5 million, from $116.8 million a year earlier.

The company sold 4033 GWh of electricity in the latest year, down from 4103 GWh in the 12 months through March 2010.

The utility said total New Zealand electricity demand was slightly down on 2010 levels because of the mild 2010 winter and the impact of the Canterbury earthquakes.

For much of the financial year wholesale electricity prices remained subdued due to above average levels of South Island hydro storage, though there were a number of short term wholesale price increases in the past four months as capacity constraints drove up prices of thermal generation.

TrustPower said its earnings weren't materially impacted by the price spikes.

New Zealand generation output rose 13 per cent to 2286 GWh in the latest year, with hydro production up 21 per cent and wind production down 5 per cent.

Wind production from the Snowtown Wind Farm in South Australia fell 12 per cent to 328 GWh.

The company will pay a final dividend of 20 cents a share, making 39 cents for the year, up from 38 cents in 2010.

TrustPower said New Zealand hydro storage is currently at above average levels for this time of year, which "should ensure a comfortable level of electricity supply to meet demand over the 2011 winter."

It didn't give a forecast for the current year.

Shares of TrustPower rose 0.1 per cent to $7.51 and have gained about 2 per cent this year, lagging behind the NZX 50 Index's 6 per cent gain.