TrustPower posts full year profit increase to $73.2m

Electricity retailer TrustPower today posted an 18 per cent increase in its March year net profit, which came in at $73.2 million.

It would pay a fully imputed final dividend of 10.5c a share on July 29.

The profit came on earnings before interest, tax, depreciation and amortisation (ebitda) of $173.3m, up 23 per cent on the previous year's ebitda of $140.4m.

Operating revenue was $612.3m, down 3 per cent on the previous year as a result of lower energy prices charged to those customers paying spot market prices.

During the year, TrustPower sold 5873 Gigawatt hours (GWh) of electricity, against 5656GWh in the March 2004 year. Its customer base remained steady at about 225,000.

In a statement to NZX, TrustPower said the 2004/05 year featured above average lake storage levels and inflows.

"For the first nine months of the year this led to low spot prices," TrustPower said.

"However, in the final quarter, while the previous hydro conditions prevailed, spot prices lifted significantly."

This could be pinned to thermal generators having reduced capacity because of maintenance, inter-island transmission constraints and some North Island thermal generation not being able to be run at normal capacity due to resource consent restrictions on cooling water.

TrustPower said its electricity generation assets performed strongly in the 12 months to March 31 and produced 2071GWh, against 1738GWh the year before.

"This increase in generation production was attributable to 10 months of production from Stage 2 of the Tararua Wind Farm as well as higher than average production from the company's hydro assets following strong inflows particularly during the last quarter."

Meanwhile, TrustPower said its operating expenses were down 8 per cent. Its operating cashflow was $110.0m, from $90.9m.

Shareholders' funds had increased to $883m, from $866m.

TrustPower said progress on its South Australian wind farm projects was slower than expected while, in New Zealand, the Tararua Stage 3 wind project was this week subject to a resource consent hearing.

"TrustPower is hopeful of a positive outcome from the hearing so that it can move to conclude a turbine supply arrangement and proceed to construction," it said.

The firm was continuing to allocate substantial resources to its New Zealand generation development. It has more than ten potential hydro and wind projects, which are at varying stages of development.

"The recently announced policy statement from the Government on the introduction of a carbon tax from April 2007 will have a favourable impact on these renewable investment opportunities as their evaluation is progressed."

The 10.5c a share final dividend came after a fully imputed interim dividend of 9.0c a share, taking the total dividend to 19.5c a share.

Last year's total fully imputed dividend was 17.5c a share.

Shortly after 10am, TrustPower shares were up 1c at $5.46, having ranged between $4.05 and $6.00 in the past year.

- NZPA