TrustPower posts improved $24.4 million profit

Tauranga-based power company TrustPower Ltd today posted a $24.4 million profit for the three months ending June 30.

The unaudited result compares with a $15.7 million profit for the same period a year earlier.

Shares in TrustPower climbed 6c to $5.98 on the news.

Earnings before interest, tax depreciation and amortisation (ebitda) were $52.1 million, compared with $39.8 million a year ago.

The result was boosted by one-off before tax payments of about $3.7 million from other retailers, following the reconciliation of energy volumes traded under the old electricity market which has now been wound up.

TrustPower said lake storage levels and inflows were below average, causing a spike in spot prices during the quarter. The load-weighted average price for the quarter was $75 per MWh versus $43 per MWh in the first quarter of 2004.

Hydro generation storage catchments were at satisfactory levels for the company to meet customer demand over the remainder of the winter.

Customer numbers remained steady at around 224,000, and the company's balance sheet remains strong.

TrustPower said it continues to make progress on key generation development opportunities.

Earlier this month TrustPower received resource consent approval for 31 turbines for stage three of its Tararua windfarm.

While the approval was for 31 turbines versus the 40 requested in the resource consent application, the company has reassessed the project economics and the expected return, inclusive of carbon credits under the government renewable assistance programme, remains at a satisfactory level.

The Tararua expansion could be commissioned by the end of 2006.

TrustPower has been working on the feasibility of the Wairau Valley hydro project for over two years. Project development has now reached a key milestone with a resource consent being lodged earlier this month.

TrustPower's Australian wind farm projects remain under review.

- NZPA